Cisco Systems, the fifth largest corporation by revenue in Silicon Valley, has just reported its earnings for last quarter. Quarterly year-end revenue shrank by three percent; cash flow dropped from $4.0 billion in Q4 2013 to $3.6 billion in Q4 2014. Fourth quarter net income was 55 cents a share. While Cisco beat its earnings estimate, the company continues to experience difficulties as it announces another round of layoffs. Chief Executive Officer John Chambers is forecasting little to no sales growth. The results underscore the difficulties facing Chambers as he seeks to remake Cisco. Customers are telling Cisco that they won’t pay for expensive hardware that shuttles data and Internet traffic, when software performs better and make the machines more versatile. Companies including Google and Facebook have embraced this trend.
Another sign of trouble is the negative growth of sales in emerging markets. In China sales are down 23%. In Brazil, sales fell by 13% in the fourth quarter ending July 26. The company continues to grow through acquisitions. Cisco has invested in 5 new acquisitions in fiscal year 2014. In the past three years, Cisco has been buying software companies and working on new software-based businesses. “Software is a fairly large business for us, and we’re going to be investing in it even more heavily.” Cisco Chief Financial Officer Frank Calderoni said in an interview. “We’re not talking about software replacing our hardware, but being additive to our hardware.” While Cisco has introduced software-driven products, earnings remain stagnant.
Failing to sustain growth in its high-end switches and routers business, Cisco is facing competition from software-defined networks (SDN). Starting next quarter, Cisco will shed 6,000 employees or 8% of its workforce. Since February, 2009, Cisco has cut more than 25,000 jobs—yet it has more employees than it did before it began the series of layoffs. Cisco’s workforce has grown by 8,000. In a rapidly shifting marketplace, Cisco needs to shuffle personnel and skill sets to compete in both its legacy markets and in emerging markets. Cisco will take a pre-tax charge of $700 million dollars. The company will post $250 million to $350 million of the charges in the first quarter, it said in a regulatory filing.
No Cisco layoffs for cloud services
Cisco’s chief executive officer, John Chambers blames global uncertainty for the layoffs. “Shedding employees in declining businesses will allow the company to add needed skills in units that are growing.“ He said, he will use the savings to reinvest in more profitable sectors like cloud computing and security. Cisco layoffs cloud services require employees with new skills. In a conference call, Cisco CEO John Chambers said, “We’ll do limited restructuring across several areas of our business,” as a means of explaining the cuts. “We are making these tough choices so the company can transform itself and grow more quickly,” he added. Cisco has exited consumer businesses, and restructured its management team. But, on average, layoffs hurt a firm’s reputation and this can hurt it financially over time making it harder to get good employees and even tarnishing the firm’s image with customers.
Increased pressure from its main business rivals, including Juniper Networks, Huawei Technologies Co. and Arista Networks Inc. (ANET) have stymied Cisco’s growth. Formidable new competitors such as Palo Alto Networks Incorporated (PANW) and FireEye Inc. continue to compete and take share in the growing computer and network security markets. To stay competitive Cisco layoffs cloud services but cloud services won’t be affected.
What are VoIP services?
“VoIP” (voice over IP) lets you make phone calls over an IP (Internet protocol) data network.
VoIP services for small business bundles phone, data and video into a unified service.
“Unified communications” from Cisco takes VoIP for small business a step further. It helps a business combine all of your communications-including voice, data, and video-into a secure, inexpensive, easy-to-manage solution with lots of great features. VoIP for small business helps keep it simple while saving money.
With speed, flexibility and the security of unified communications of a small business network, Cisco can offer the right sized small business solution. VoIP is an important part of a unified communications solution, according to voipreview.org.
Voipreview.org recognizes that small business owners need to stay flexible. VoIP for small business is the solution. With the ability to switch from an Internet-based phone system on the company’s network, employees can stay connected at work and at home. VoIP provides better security and easier access to needed information at all times.
Businesses can save money with VoIP services because Web conferencing, video calls and other collaborative tools reduce travel expenses.
A company can easily add extra phone lines because VoIP allows more than one phone call to be sent across the same Web-based network.
Management can communicate better with employees and customers by offering more ways to stay connected. Cisco’s “presence” technology allows management and other employees to see which employees are available and how to contact them.
Unified communications makes it easier to telecommute from anywhere with an Internet connection. Small businesses benefit from lots of features without hidden fees such as call forwarding, voice mail, unlimited long distance, call conferencing, and caller ID. IP phones come with color liquid crystal displays (LCD) and dynamic soft keys for call features and functions. Cisco Unified IP phones support information services, including Extensible Markup Language (XML) capabilities. The ability to customize XML-based Services let users access a variety of information such as employee directories and web content.
VoIP Services Hosting Options
According to voipreview.org, Cloud-hosted VoIP is the easiest to deploy, simplest to maintain, and also offers one of the lowest in terms of capital expenditure. Besides ensuring proper network bandwidth and infrastructure, you don’t need to invest in things like PRIs, SIP trunks, or extra on premise appliances. Cisco layoffs for cloud services in order to grow this part of their business.
Internally-hosted VoIP places some form of server or voice appliance into your office. These systems usually have to be coupled with delivery mechanisms like separate PRI lines or SIP trunk providers, which add to their cost.