Cisco Systems, Inc. (CSCO): Business Model Canvas [Jan-2025 Mise à jour]

Dans le paysage en constante évolution de la technologie mondiale, Cisco Systems est un titan d'innovation, transformant la façon dont les entreprises se connectent, communiquent et sécurisent leurs écosystèmes numériques. De la propagation des infrastructures de réseaux complexes à la fourniture de solutions de cybersécurité de pointe, Cisco a magistralement conçu un modèle commercial qui transcende les frontières technologiques traditionnelles, créant une valeur pour les entreprises dans divers secteurs. Cette exploration de la toile du modèle commercial de Cisco révèle le cadre stratégique complexe qui a propulsé l'entreprise pour devenir un 200 milliards de dollars Powerhouse technologique, conduisant la transformation numérique pour les organisations du monde entier.

Cisco Systems, Inc. (CSCO) - Modèle d'entreprise: partenariats clés

Alliances stratégiques avec les grandes entreprises technologiques

Cisco maintient des partenariats stratégiques avec:

Partenaire	Détails du partenariat	Valeur de collaboration annuelle
Microsoft	Intégration de réseautage du cloud et de l'entreprise	1,2 milliard de dollars de revenus conjoints
Ibm	Solutions de cybersécurité et de cloud	Contrats collaboratifs de 850 millions de dollars
Pomme	Mobilité de l'entreprise et infrastructure réseau	Collaboration technologique de 750 millions de dollars

Réseau mondial de partenaires de canaux et de revendeurs

L'écosystème du partenaire de la chaîne de Cisco comprend:

• Total Channel Partners: 67 300 à l'échelle mondiale
• Emplacements des partenaires certifiés: 42 pays
• Revenus du programme partenaire annuel: 43,7 milliards de dollars

Collaborations institutionnelles académiques

Type d'institution	Nombre de partenariats	Investissement en recherche
Universités	128 partenariats de recherche mondiaux	Financement de la recherche annuelle de 375 millions de dollars
Instituts technologiques	87 collaborations technologiques spécialisées	240 millions de dollars investissements en innovation

Partenariats des fournisseurs de services cloud

Les partenariats de service cloud de Cisco comprennent:

• AWS: 2,1 milliards de dollars de revenus de solution conjointe
• Google Cloud: Contrats collaboratifs de 1,6 milliard de dollars
• Microsoft Azure: 1,9 milliard de dollars de services intégrés

Fusions et acquisitions

Entreprise acquise	Année d'acquisition	Valeur d'acquisition	Focus technologique
Sabot	2022	28 milliards de dollars	Cybersécurité et observabilité
Mille yeux	2020	1,1 milliard de dollars	Intelligence de réseau
Appdynnynamics	2017	3,7 milliards de dollars	Surveillance des performances de l'application

Cisco Systems, Inc. (CSCO) - Modèle d'entreprise: Activités clés

Conception et développement des infrastructures de réseau

Cisco a investi 6,64 milliards de dollars dans la recherche et le développement au cours de l'exercice 2023. La société conçoit et développe des solutions d'infrastructure de réseau complexes dans plusieurs domaines technologiques.

Catégorie de conception d'infrastructure	Investissement annuel
Solutions de réseautage d'entreprise	2,1 milliards de dollars
Réseau de prestataires de services	1,8 milliard de dollars
Infrastructure cloud	1,5 milliard de dollars

Solutions de cybersécurité et innovation de produit

Le segment de la cybersécurité de Cisco a généré 3,5 milliards de dollars de revenus au cours de l'exercice 2023.

• Développement de protection des menaces avancées
• Architecture de sécurité zéro fiducie
• Secure Service Edge (Sase) Solutions

Recherche et développement des technologies de réseautage

Cisco maintient 24 centres de recherche et développement primaires dans le monde, avec 28 646 brevets actifs en 2023.

Zone de focus R&D	Dénombrement des brevets
Technologies de réseautage	12,345
Technologies de cybersécurité	6,789
Cloud computing	4,567

Fabrication de produits logiciels et matériels

Cisco a produit environ 45 millions de dispositifs de réseautage en 2023, avec des revenus matériels atteignant 26,5 milliards de dollars.

• Fabrication d'équipements de routage
• Production d'infrastructures de commutation
• Développement matériel des télécommunications

Services de conseil et de support technique

Le segment des services de Cisco a généré 14,6 milliards de dollars de revenus au cours de l'exercice 2023, avec 75 000 professionnels du soutien technique dans le monde.

Catégorie de service	Revenus annuels
Conseil technique	6,2 milliards de dollars
Support technique	5,4 milliards de dollars
Services avancés	3 milliards de dollars

Cisco Systems, Inc. (CSCO) - Modèle d'entreprise: Ressources clés

Portfolio de propriété intellectuelle étendue

En 2024, Cisco détient 22 608 brevets actifs dans le monde. Valeur du portefeuille de brevets estimé à 7,8 milliards de dollars.

Catégorie de brevet	Nombre de brevets
Technologies de réseautage	12,345
Cybersécurité	4,567
Cloud computing	3,456
Internet des objets	2,240

Centres de recherche et développement avancés

Cisco exploite 16 centres de R&D primaires dans le monde, avec un investissement annuel de R&D de 6,3 milliards de dollars en 2023.

• Silicon Valley, Californie (siège de R&D)
• Bangalore, Inde
• Park Triangle de recherche, Caroline du Nord
• Toronto, Canada
• Centre d'innovation Israël

Pool de talents mondiaux d'experts en ingénierie et en technologie

Total de la main-d'œuvre: 83 300 employés au quatrième trimestre 2023. Les professionnels de l'ingénierie représentent 62% de la main-d'œuvre totale.

Distribution géographique	Pourcentage des employés
États-Unis	48%
Asie-Pacifique	22%
Europe, Moyen-Orient, Afrique	20%
l'Amérique latine	10%

Grande réputation de marque dans la technologie de réseautage

Valeur de la marque estimée à 36,9 milliards de dollars en 2023, classée 56e dans le classement mondial des marques.

Infrastructure et centres de données technologiques complets

Exploite plus de 200 centres de données dans le monde, avec un investissement total d'infrastructures de 2,4 milliards de dollars en 2023.

Type de centre de données	Nombre
Centres de données d'entreprise	85
Centres de services cloud	65
Installations de colocation	50

Cisco Systems, Inc. (CSCO) - Modèle d'entreprise: propositions de valeur

Solutions de réseautage et de communication intégrés

Les solutions de réseautage de Cisco génèrent 51,56 milliards de dollars de revenus annuels à l'exercice 2023. La société fournit une infrastructure de réseautage complète avec une part de marché de 43,7% dans les équipements de réseautage d'entreprise.

Catégorie de produits	Revenus annuels	Part de marché
Réseautage d'entreprise	24,3 milliards de dollars	43.7%
Réseau de prestataires de services	15,2 milliards de dollars	36.5%
Technologies de collaboration	12,06 milliards de dollars	29.4%

Technologies de cybersécurité de qualité d'entreprise

Le segment de cybersécurité de Cisco génère 3,5 milliards de dollars de revenus récurrents annuels avec une part de marché mondiale de 18,9% dans les solutions de sécurité des entreprises.

• Solutions de protection des menaces avancées
• Architecture de sécurité zéro fiducie
• Plates-formes de sécurité cloud
• Technologies de sécurité des terminaux

Infrastructure réseau évolutive et flexible

Cisco prend en charge 95% du trafic Internet mondial via son infrastructure de réseautage, avec 450 000 clients d'entreprise dans le monde.

Métrique d'infrastructure	Statistique
Trafic Internet mondial pris en charge	95%
Entreprenants	450,000
Installations d'équipement réseau	3,5 millions

Innovations technologiques de pointe

Cisco investit 6,3 milliards de dollars par an dans la recherche et le développement, ce qui représente 14,5% des revenus totaux.

• Gestion du réseau alimenté par AI
• Réseaux définis par logiciel (SDN)
• Réseautage basé sur l'intention
• Solutions informatiques 5G et Edge

Support de transformation numérique de bout en bout

Cisco fournit des services de transformation numérique avec un marché total adressable de 642 milliards de dollars, soutenant 84% des entreprises du Fortune 500.

Métrique de transformation numérique	Valeur
Marché total adressable	642 milliards de dollars
Fortune 500 entreprises soutenues	84%
Revenus de transformation numérique annuels	14,8 milliards de dollars

Cisco Systems, Inc. (CSCO) - Modèle d'entreprise: relations avec les clients

Support client de l'entreprise dédiée

Cisco fournit un soutien technique 24/7 dans 160 pays avec plus de 19 000 professionnels du soutien dévoué. Le temps de réponse moyen est de 30 minutes pour les problèmes d'entreprise critiques.

Canal de support	Volume de soutien annuel	Temps de résolution moyen
Support téléphonique	2,3 millions d'incidents	4,2 heures
Assistance en ligne	3,7 millions d'incidents	2,8 heures
Support sur place	685 000 incidents	6,5 heures

Services de conseil technique personnalisés

Cisco offre des services de conseil spécialisés avec 7 500 ingénieurs de conseil certifiés dans le monde. La valeur moyenne de l'engagement de consultation est de 450 000 $ par client d'entreprise.

• Conception d'architecture de réseau
• Évaluation de la sécurité
• Stratégie de migration du cloud
• Conseil de transformation numérique

Portails de clients en ligne et bases de connaissances

Cisco maintient une plate-forme de support en ligne complète avec 2,1 millions d'utilisateurs enregistrés et 85 000 ressources de documentation technique.

Caractéristique du portail	Utilisateurs actifs mensuels	Volume de contenu
Documentation technique	1,4 million	85 000 documents
Forums communautaires	620,000	3,2 millions de postes

Programmes de formation et de certification des produits

Cisco offre une formation approfondie avec 5,2 millions de professionnels certifiés dans le monde. Les revenus de formation annuels atteignent 980 millions de dollars.

• Certification CCNA
• CCNP Enterprise
• Certification DevNet
• Cyberops professionnel

Mécanismes proactifs de l'engagement et de la rétroaction des clients

Cisco réalise chaque année plus de 250 000 enquêtes de satisfaction des clients avec un score net moyen du promoteur de 67.

Canal de fiançailles	Interactions annuelles	Taux de satisfaction client
Enquêtes clients	250,000	94%
Centres de briefing exécutif	12 500 visites d'entreprise	89%
Boards consultatifs des clients	180 réunions mondiales	92%

Cisco Systems, Inc. (CSCO) - Modèle d'entreprise: canaux

Équipes de vente directes

La force de vente directe de Cisco comprend environ 25 000 professionnels de la vente dans le monde. Au cours de l'exercice 2023, les canaux de vente directs ont généré 53,7 milliards de dollars de revenus.

Type de canal de vente	Nombre de représentants commerciaux	Contribution annuelle des revenus
Ventes d'entreprise	12,500	31,2 milliards de dollars
Ventes commerciales	8,500	15,6 milliards de dollars
Ventes du secteur public	4,000	6,9 milliards de dollars

Plateformes de commerce électronique en ligne

La plate-forme de vente numérique de Cisco a traité 17,4 milliards de dollars de transactions en ligne au cours de 2023, ce qui représente 32,4% du total des revenus de l'entreprise.

• Le volume des transactions de plate-forme en ligne a augmenté de 18,6% en glissement annuel
• Valeur de commande en ligne moyenne: 127 500 $
• La plate-forme numérique dessert 186 pays

Réseaux de revendeurs et de partenaires autorisés

Cisco maintient un écosystème de partenaires mondiaux avec 67 000 partenaires certifiés dans 168 pays.

Niveau de partenaire	Nombre de partenaires	Contribution des revenus
Partenaires d'or	15,200	22,3 milliards de dollars
Partenaires argentés	28,500	12,6 milliards de dollars
Partenaires de bronze	23,300	6,8 milliards de dollars

Conférences de technologie et salons professionnels

Cisco a participé à 412 événements technologiques mondiaux en 2023, générant 3,2 milliards de dollars d'opportunités de vente directes.

MARKETING DIGULE ET PLADES DE MÉDAISE SOCIAL

Les canaux de marketing numérique ont généré 8,9 milliards de dollars de revenus pour Cisco en 2023.

• LinkedIn adepte: 2,1 millions
• Abonnés Twitter: 1,7 million
• Abonnés à la chaîne YouTube: 650 000
• Taux de conversion du marketing numérique: 4,7%

Cisco Systems, Inc. (CSCO) - Modèle d'entreprise: segments de clientèle

Grandes entreprises d'entreprise

Cisco dessert 95% des sociétés du Fortune 500 en 2023. Revenus de réseautage des entreprises annuelles: 24,3 milliards de dollars.

Métriques du segment d'entreprise	Points de données
Total des clients d'entreprise	88 000 comptes d'entreprise mondiaux
Valeur du contrat annuel moyen	3,2 millions de dollars par client d'entreprise

Petites et moyennes entreprises

Cisco cible 3,7 millions de clients SMB dans le monde. Revenu du segment SMB: 8,6 milliards de dollars en 2023.

• Pénétration du marché des PME: 42% de part de marché mondiale
• Dépenses de produit moyen par client SMB: 85 000 $ par an

Organisations du gouvernement et du secteur public

Cisco dessert 85% des agences du gouvernement fédéral américain. Revenus de réseautage du secteur public: 6,9 milliards de dollars en 2023.

Détails du segment du gouvernement	Métrique
Clients gouvernementaux totaux	12 500 entités gouvernementales
Contrats de cybersécurité	1 750 contrats de sécurité gouvernementaux actifs

Établissements d'enseignement

Cisco soutient 68 000 établissements d'enseignement dans le monde. Revenu du segment de l'éducation: 3,4 milliards de dollars en 2023.

• Institutions K-12 servies: 42 000
• Institutions d'enseignement supérieur: 26 000
• Investissement moyen de réseautage par institution: 210 000 $

Fournisseurs de services de télécommunications

Cisco dessert 95% des sociétés mondiales de télécommunications. Revenu du segment des télécommunications: 15,7 milliards de dollars en 2023.

Répartition du segment des télécommunications	Statistiques
Total des clients de télécommunications	1 200 fournisseurs de services
Contrats d'infrastructure 5G	670 Contrats de déploiement du réseau actif 5G

Cisco Systems, Inc. (CSCO) - Modèle d'entreprise: Structure des coûts

Investissements de recherche et développement

Cisco a investi 6,49 milliards de dollars dans les dépenses de R&D pour l'exercice 2023, ce qui représente 13,2% des revenus totaux.

Exercice fiscal	Investissement en R&D	Pourcentage de revenus
2023	6,49 milliards de dollars	13.2%
2022	6,32 milliards de dollars	12.8%

Dépenses mondiales de vente et de marketing

Les frais de vente et de marketing de Cisco ont totalisé 11,35 milliards de dollars au cours de l'exercice 2023.

• Distribution géographique des frais de vente:
• Amérique du Nord: 45%
• EMEA (Europe, Moyen-Orient, Afrique): 25%
• Asie-Pacifique: 22%
• Amérique latine: 8%

Opérations de fabrication et de chaîne d'approvisionnement

Le coût des marchandises de Cisco vendu (COGS) était de 18,95 milliards de dollars au cours de l'exercice 2023.

Catégorie de coûts	Montant
Coûts de fabrication	12,6 milliards de dollars
Logistique et distribution	3,2 milliards de dollars
Gestion des stocks	3,15 milliards de dollars

Compensation et formation des employés

Les dépenses totales d'indemnisation des employés pour Cisco au cours de l'exercice 2023 étaient de 16,8 milliards de dollars.

• Compensation moyenne des employés: 215 000 $
• Budget de formation et de développement: 380 millions de dollars
• Avantages sociaux: 2,4 milliards de dollars

Maintenance des infrastructures technologiques

Cisco a dépensé 2,7 milliards de dollars pour la maintenance des infrastructures technologiques au cours de l'exercice 2023.

Catégorie de maintenance des infrastructures	Frais
Infrastructure de centre de données	1,2 milliard de dollars
Infrastructure cloud	850 millions de dollars
Infrastructure de sécurité du réseau	650 millions de dollars

Cisco Systems, Inc. (CSCO) - Modèle d'entreprise: Strots de revenus

Ventes de produits matériels

T2 2023 Revenus de vente de produits matériels du matériel: 13,2 milliards de dollars

Catégorie de produits	Revenus ($ b)
Commutation	4.7
Routage	3.9
Centre de données	2.8

Licence et abonnements logiciels

Revenus logiciels annuels pour l'exercice 2023: 20,5 milliards de dollars

• Revenus logiciels basés sur l'abonnement: 87% du total des revenus logiciels
• LICENCES DU LOGICIEL DE NETTAGE ENTREPRISE: 6,3 milliards de dollars
• Abonnements du logiciel de sécurité: 4,1 milliards de dollars

Services professionnels et conseil

Revenus de services professionnels pour l'exercice 2023: 3,8 milliards de dollars

Type de service	Revenus ($ b)
Consultation des infrastructures	1.6
Services avancés	1.2
Mise en œuvre technique	1.0

Contrats de support technique et de maintenance

Revenus de soutien technique annuel: 7,2 milliards de dollars

• Taux de renouvellement du contrat de soutien technique: 92%
• Valeur du contrat moyen: 250 000 $

Offres de solutions de cloud et de cybersécurité

Revenus annuels annuels du cloud et de la cybersécurité: 15,6 milliards de dollars

Catégorie de solution	Revenus ($ b)
Infrastructure cloud	8.3
Solutions de cybersécurité	7.3

Cisco Systems, Inc. (CSCO) - Canvas Business Model: Value Propositions

Digital Resilience through unified security and observability (Cisco + Splunk)

The integration of Splunk is a core value driver, moving Cisco beyond just connectivity to comprehensive data-driven security and operational trust. For the full fiscal year 2025, Cisco Systems, Inc. reported Security revenue at $8.09 B, a significant increase of 59.49% compared to fiscal 2024, largely fueled by the Splunk contribution. The Observability segment revenue reached $1.06 B in fiscal 2025, showing a growth of 26.05% year-over-year. This unified approach is highlighted by product announcements such as the ability to ingest Cisco firewall logs into Splunk at no cost starting in August 2025 (conditions apply). The goal is to empower organizations to maximize the trust and power of Artificial Intelligence by unlocking actionable insights from machine data.

AI-driven infrastructure and networking for high-performance computing

Cisco Systems, Inc. is positioning its networking gear as essential for the Artificial Intelligence boom, securing substantial orders from major cloud providers. For fiscal year 2025, the company secured over $2 billion in AI infrastructure orders from webscale customers, which more than doubled its original target. In the fourth quarter of fiscal 2025 alone, these AI infrastructure orders exceeded $800 million. The Networking segment, Cisco Systems, Inc.'s largest, generated $28.30 B in revenue in fiscal 2025, representing 44.53% of total revenue. This segment is seeing catalysts from AI spend, even as its overall revenue saw a slight decrease of -3.16% for the full year. The company launched the "Cisco Unified Edge" computing platform to run AI workloads at local entities like retail stores and healthcare facilities.

Secure, flexible solutions for the hybrid work environment (Webex Suite)

The Webex Suite provides an all-in-one, AI-powered collaboration platform designed for engagement from anywhere. Webex Calling has grown to support over 14 million users worldwide, and the platform hosts a record eight billion monthly calls. The platform supports 650 million monthly meeting participants. You can see customer confidence reflected in the Gartner Peer Insights data, where 87% of reviewers as of March 2025 would recommend the Webex Suite solution to their peers. Furthermore, Gartner recognized Cisco Systems, Inc. as a 2025 Customers' Choice for Contact Center as a Service.

Simplified IT management via cloud-managed platforms like Cisco Meraki

Cisco Meraki delivers out-of-the-box security, scalability, and management targeted at Small and Medium-sized Businesses (SMBs) through its cloud-first platform. The management is simplified via a single, simple, and secure web-based dashboard. Cisco Meraki now offers three distinct licensing models to provide greater control: Co-Termination, Per-Device Licensing (PDL), and Subscription Licensing, which allows for licensing terms ranging from 12 to 120 months. This cloud-managed approach reduces administrative complexity for IT teams managing multiple sites and devices.

End-to-end security that is defintely fused into the network fabric

Security is a major pillar, evidenced by the Security segment revenue reaching $8.09 B in fiscal 2025. The integration of security is a key differentiator, with the company claiming its new security strategy contributed to security orders having more than doubled year-over-year in a prior quarter. The value proposition includes Zero Trust Network Access (ZTNA) enforcement across over 1,200+ GenAI applications via ThousandEyes. The overall financial health supports these investments, with total fiscal year 2025 revenue at $56.7 billion, and operating cash flow increasing 30% to $14.2 billion.

Here's a quick math summary of the full fiscal year 2025 performance:

Metric	Value (FY 2025)	Y/Y Change
Total Revenue	$56.7 billion	5% increase
Security Revenue	$8.09 B	59.49% increase
AI Infrastructure Orders	Over $2 billion	More than double target
Operating Cash Flow	$14.2 billion	30% increase

What this estimate hides is the ongoing integration complexity following the Splunk acquisition, which is a key factor in realizing the full security and observability value proposition.

Cisco Systems, Inc. (CSCO) - Canvas Business Model: Customer Relationships

You're looking at how Cisco Systems, Inc. manages its relationships with customers as of late 2025, which is heavily tilted toward recurring value and proactive service delivery.

The partner-led service model remains central for implementation, consulting, and managed services delivery. This channel is crucial for scaling specialized expertise across the installed base.

For your largest Enterprise and Service Provider customers, dedicated account management teams are in place. These teams focus on the entire customer lifecycle, especially as the business shifts further into software and subscription models.

Customer Success teams are specifically tasked with driving adoption of subscription services. This focus is necessary because Annual Recurring Revenue (ARR) ended Q4 Fiscal Year 2025 at $31.1 billion, marking a 5% increase. Total subscription revenue for the quarter was $7.9 billion, which is 54% of Cisco Systems, Inc.'s total revenue.

Here's a quick look at the financial scale of the recurring and service business as of the Q4 FY2025 close:

Metric	Value (Q4 FY2025)	Year-over-Year Change
Total Annual Recurring Revenue (ARR)	$31.1 billion	5% increase
Total Subscription Revenue	$7.9 billion	3% increase
Service Revenues	$3.79 billion	Flat (0% change)

Procurement is streamlined through Enterprise Agreements (EAs), which simplify how customers buy software and services across the portfolio. For instance, partners utilizing the Cisco Enterprise Agreement 3.0 with a lifecycle approach have seen software growth that is 2.5x greater and renewal rates that are 3x higher.

Cisco Systems, Inc. is heavily investing in proactive and predictive support using Artificial Intelligence (AI) to resolve issues faster. This is a major focus area, especially given the high demand for AI infrastructure, which saw orders exceed $800 million in Q4 FY2025 alone.

The drive toward AI-enhanced support is based on customer expectations and internal metrics:

• 93% of surveyed respondents predict agentic AI will enable more personalized, proactive, and predictive services.
• 88% of respondents feel confident that agentic AI-led customer experience will help their organization meet its goals.
• Cisco Systems, Inc. expects agentic AI to handle 68% of customer experience interactions within three years (by late 2028).
• Queries through agentic AI were measured at 25x higher in network traffic than traditional chatbots during a recent earnings call.
• AI tools are expected to virtually eliminate network downtime caused by misconfiguration, which currently costs businesses 9% of their total annual revenue.

The company projects AI infrastructure revenue to reach $3 billion for fiscal year 2026, showing where future service and support integration will be concentrated. It's defintely a shift from reactive fixes to predictive maintenance.

Finance: draft 13-week cash view by Friday.

Cisco Systems, Inc. (CSCO) - Canvas Business Model: Channels

You're looking at how Cisco Systems, Inc. moves its massive portfolio of networking, security, and software solutions to the end customer as of late 2025. The channel remains the absolute backbone of their go-to-market strategy, even as the mix shifts toward recurring services.

Two-Tier Channel Partner model (Distributors to Resellers)

Cisco Systems, Inc. historically relies heavily on its indirect sales motion. For fiscal year 2025, the total revenue reached approximately $56.7 billion. Based on historical vendor statements that over 80 percent of revenue flows through partners, this implies that well over $45 billion in annual revenue was influenced or driven by the channel ecosystem in FY2025. This structure uses distributors to manage logistics and inventory for a vast network of resellers, ensuring broad market coverage across the globe.

Value-Added Resellers (VARs) and System Integrators (SIs) for complex solutions

VARs and SIs are critical for deploying the complex, integrated solutions that Cisco provides, especially as customers modernize infrastructure and adopt AI. These partners translate Cisco's broad portfolio into specific, high-value outcomes for large enterprises. The growth in specialized areas reflects their importance; for instance, product orders across all customer markets saw strong growth, with enterprise up 4% in Q3 FY25. The shift in partner designations under the upcoming Cisco 360 program-moving away from the old Gold designation to Cisco Partner and Cisco Preferred Partner-is designed to better measure the value these solution-focused partners bring, moving away from pure transaction volume.

Managed Service Providers (MSPs) for recurring, subscription-based services

The strategic push is clearly toward recurring revenue, which MSPs are perfectly positioned to deliver. The new Cisco 360 Partner Program, set to launch in February 2026, is explicitly built to attract more MSPs and MSSPs by focusing on value delivered rather than just upfront hardware sales. This aligns with the financial reality: Total subscription revenue reached $8 billion, making up 54% of total revenue in Q1 2026, the quarter immediately following FY2025. This signals that the channel strategy is successfully driving the subscription transition.

Direct sales force for strategic, large-scale Enterprise and Webscale accounts

Cisco Systems, Inc. maintains a focused direct sales force, historically numbering around 17,000 employees, to manage the most strategic accounts. The primary focus for this direct team is the high-end enterprise and, critically, the webscale customers driving AI build-outs. AI Infrastructure orders taken from webscale customers exceeded $2 billion in total for fiscal year 2025, more than doubling the initial $1 billion target. Furthermore, product orders from the service provider and cloud segment grew 45% year-over-year in Q3 FY25, indicating significant direct engagement in this high-growth area. The majority of direct sales historically sits within the service provider space.

Online portals and marketplaces for software and cloud product sales

While hardware sales are often partner-led, the digital storefronts are central to the software and subscription business. The move to a subscription model is substantial; in FY2021, 80% of Cisco software was sold as a subscription, a trend that has only accelerated into late 2025. These online platforms facilitate the consumption and management of recurring services, which now form a major part of the revenue base. The overall FY2025 revenue was $56.7 billion, with the Service segment alone accounting for $21.96 billion in FY2025.

Here is a snapshot of key channel and related financial metrics as of the end of fiscal year 2025:

Metric Category	Specific Data Point	Value / Amount (FY2025 Context)
Total Company Revenue (FY2025)	Full Year Revenue	$56.7 billion
Channel Revenue Reliance	Historical Percentage of Revenue via Partners	Over 85% of products and services revenue
Direct Sales Focus Area	AI Infrastructure Orders from Webscale Customers (FY2025 Total)	Over $2 billion
Service Provider/Cloud Growth	Product Order Growth (Q3 FY25 YoY)	45%
Subscription/Recurring Business	Total Subscription Revenue (Q1 FY26)	$8 billion
Partner Program Investment	Investment in Training for Cisco 360 Program	$80 million
Partner Ecosystem Scale	Approximate Number of Partners (Contextual)	Over 60,000

The channel structure is evolving to support this subscription focus. You can see the key elements that define the partner engagement model:

• The transition to the Cisco Partner Incentive (CPI) structure, replacing VIP and CSPP, starting in February 2026.
• The new partner tiers will be Cisco Partner and Cisco Preferred Partner, replacing the Gold designation.
• The program emphasizes measuring partners on foundational, capabilities, performance, and engagement, not just transactions.
• The direct sales force prioritizes securing large deals, such as the two billion-dollar deals signed with web scale customers in FY2025.
• The company is actively managing the channel through platforms like the Partner Experience Platform (PXP) to model earnings with a new profitability estimator tool coming in May (2026).

Finance: draft the Q1 FY2026 channel revenue attribution model by next Tuesday.

Cisco Systems, Inc. (CSCO) - Canvas Business Model: Customer Segments

You're looking at the core buyers Cisco Systems, Inc. serves as of late 2025. It's a broad base, but the financial focus is clearly shifting toward high-growth areas like AI infrastructure and software-driven security.

The largest customer base, by far, remains Large Enterprises across every industry you can name, from Finance to Healthcare. These customers drive the bulk of the core Networking business. For the full fiscal year 2025, the Networking segment brought in $28.30 Billion, representing about 44.53% of the total revenue base of $56.65 Billion. Still, the growth story is elsewhere; Security revenue hit $8.09 Billion in FY 2025, showing massive expansion.

The Service Providers and Cloud/Webscale Customers segment is where the near-term excitement is, especially around AI. Cisco Systems, Inc. saw AI Infrastructure orders from these webscale customers exceed $800 million in the fourth quarter alone, pushing the total for fiscal year 2025 past $2 billion. Honestly, that's more than double the original $1 billion target they set out with. Product orders from this group were up a massive 49% year-over-year in Q4.

For the smaller and mid-sized organizations, the Small and Medium-sized Businesses (SMBs), Cisco relies heavily on its channel. You won't see a dedicated financial line item for them, but they are served almost entirely through the partner ecosystem. This channel strategy helps Cisco maintain reach without the high direct sales cost associated with smaller deals.

The Public Sector-think Government, Education, and Defense-is a steady but sometimes lumpy customer. In the first quarter of fiscal 2025, product orders for this group grew only 2% year-over-year, partly due to budgetary pressures in the US Federal space. Product revenue in the Americas was actually offset by a decline in the public sector market, even as enterprise demand grew.

Finally, don't forget the builders: Developers and DevOps teams. This group is targeted through platforms like Observability, which is a key growth area following the acquisition of Splunk for $28 billion in 2024. Observability revenue reached $1.06 Billion in FY 2025, a growth of over 26% compared to the prior year.

Here's a quick look at how the main product revenue categories mapped to the overall business in FY 2025:

Customer/Market Focus Area	FY 2025 Revenue (Billions USD)	Y/Y Growth (FY 2025 vs FY 2024)
Service Providers/Cloud (AI-driven)	Data derived from AI orders: $2.00+ Billion (Orders)	AI Orders: More than double target
Large Enterprises (Core Networking)	Networking Revenue: $28.30 Billion	Networking Revenue: Decreased -3.16%
Enterprises (Security Focus)	Security Revenue: $8.09 Billion	Security Revenue: Increased 59.49%
Developers/DevOps (Observability)	Observability Revenue: $1.06 Billion	Observability Revenue: Increased 26.05%

You'll notice the core Networking revenue dipped slightly, but Security and Observability are pulling the weight for future-facing segments.

Finance: Finalize the FY2026 budget allocation model reflecting the shift from core Networking to Security/AI infrastructure by next Wednesday.

Cisco Systems, Inc. (CSCO) - Canvas Business Model: Cost Structure

You're looking at the expense side of the Cisco Systems, Inc. ledger for late 2025, and it's clear that building and selling complex, global-scale infrastructure requires significant upfront and ongoing investment. The cost structure is heavily weighted toward engineering the next generation of networking and security, plus the operational costs of a massive worldwide sales engine.

High cost of Goods Sold (COGS) for complex hardware manufacturing remains a core component, even as software and subscription revenue grows. While Cisco outsources much of its manufacturing, the Bill of Materials (BOM) for high-end routers, switches, and data center gear is substantial. For the full fiscal year 2025, with total revenue at $56.7 billion, the Cost of Goods Sold was approximately $19.91 billion, derived from the reported Gross Profit of $36.790 billion and a GAAP Gross Margin of 64.94% for the year. This margin, while strong for hardware, reflects the inherent material and production costs.

The commitment to future relevance shows up clearly in Research and Development (R&D). Cisco Systems, Inc. poured $9.3 billion into annual Research and Development expenses for fiscal year 2025, a notable increase that signals a deep focus on innovation, especially around AI infrastructure and security integration following the Splunk acquisition. This investment is critical to maintaining their competitive moat.

The global footprint necessitates large Sales, General, and Administrative (SG&A) spending. This covers the massive global sales force, which is reported to be around 25,000 strong across 90 countries, plus the overhead to run the entire enterprise. For fiscal year 2025, estimates show Sales and Marketing costs approaching nearly $11,000 million, while General and Administrative expenses were near $2,992 million.

The integration of major acquisitions like Splunk creates specific, non-cash charges that impact the cost base. Amortization costs related to acquired intangible assets are significant. For the first six months of fiscal 2025, the total amortization of purchased intangibles, including those from Splunk, reached $1,195 million. Furthermore, the estimated future amortization expense for finite-lived purchased intangible assets as of July 27, 2024, included a charge of $2,138 million expected to be recognized in fiscal year 2025.

Managing the ecosystem of resellers and integrators is another necessary cost. Costs associated with managing the global channel partner incentive programs, rebates, and support structures are embedded within the SG&A and sometimes the COGS structure, though a specific standalone figure isn't always broken out. You also have to account for restructuring charges, which in the first six months of fiscal 2025 included $675 million related to a plan announced to drive efficiencies.

Here's a quick look at the major operating expense buckets for FY 2025:

Cost Category	Reported/Estimated Amount (FY 2025)	Basis/Notes
Cost of Goods Sold (COGS)	$19.91 billion	Calculated from Revenue ($56.7B) and Gross Profit ($36.79B)
Research & Development (R&D)	$9.3 billion	Annual Expense
Sales & Marketing Expenses	Nearly $11,000 million	Estimated Operating Expense Component
General & Administrative (G&A) Expenses	Nearly $2,992 million	Estimated Operating Expense Component
Amortization of Intangible Assets (H1 FY25)	$1,195 million	Total for the first six months of FY 2025
Restructuring Charges Incurred (H1 FY25)	$675 million	Charges incurred in the first six months of FY 2025

The overall operating expense (OPEX) for fiscal year 2025 was reported at $23.26 Billion. This figure bundles the R&D, SG&A, and other operating costs you're tracking. The trend shows these costs are rising, which is why operating income saw a dip in 2025 compared to its 2023 peak, even with strong revenue growth.

You should keep an eye on how these costs translate to the bottom line. The mix of expenses points to a strategy that prioritizes:

• Engineering Dominance: The $9.3 billion R&D spend is the price of staying ahead in networking and security.
• Market Penetration: The high SG&A reflects the necessary cost to service and sell to a massive, global customer base.
• Acquisition Integration: Amortization charges, like the $1,195 million in the first half of the year, are a direct consequence of growth-by-acquisition strategy.
• Channel Management: Incentive programs are a variable cost tied directly to the sales volume moving through partners.

Finance: draft 13-week cash view by Friday.

Cisco Systems, Inc. (CSCO) - Canvas Business Model: Revenue Streams

You're looking at how Cisco Systems, Inc. actually books its sales as of late 2025, which is a mix of big upfront hardware sales and increasingly important recurring software income. Honestly, the shift is the story here.

The total revenue for fiscal year 2025 hit approximately $56.654 billion, showing a 5% increase year-over-year, which is a solid number given the market complexity. This top line is carved up between hardware, software, and the support that keeps it all running.

Product Revenue, which covers the physical gear like switches and routers, was reported at $41.61 billion for FY 2025. That's the bulk of the business, representing the foundational networking hardware sales you'd expect from Cisco Systems, Inc. Still, the real momentum is elsewhere.

Services Revenue, covering things like technical support and professional services, brought in $15.04 billion in FY 2025. This stream is crucial for customer stickiness, ensuring ongoing relationships beyond the initial box sale.

The big financial move is in the recurring model. Software and Subscription Revenue reached $22.3 billion in FY 2025. That's a significant 21% increase, largely powered by the full-year contribution from the Splunk acquisition, which is a clear indicator of where the company is placing its strategic bets for future, predictable cash flow.

When we break down the product categories, you see the core strength and the growth areas. Core Networking Revenue, the bread and butter, stood at $28.30 billion in FY 2025. That segment is massive, but it actually saw a slight dip year-over-year, which you need to factor into your long-term growth assumptions.

The high-growth segments are where the future investment story is playing out. Security revenue was $8.09 billion, showing massive growth, largely due to integrating advanced threat intelligence and response capabilities. Observability revenue, while smaller, also posted strong growth, hitting $1.06 billion in the fiscal year.

Here's a quick look at how those key segments stacked up in FY 2025:

Revenue Stream	FY 2025 Amount (Billions USD)	Growth Driver Context
Product Revenue (Total)	$41.61	Networking hardware, Security, Collaboration, Observability
Services Revenue (Total)	$15.04	Technical Support, Advanced Services
Software/Subscription Revenue	$22.3	21% increase, driven by Splunk integration
Core Networking Revenue	$28.30	The foundational infrastructure business
Security Revenue	$8.09	Threat Intelligence, Detection, and Response offerings
Observability Revenue	$1.06	Growth in Suite offerings and ThousandEyes network services

It's also helpful to see the recurring revenue components that underpin the subscription growth. The total Remaining Performance Obligations (RPO) ended the fiscal year strong, at $43.5 billion total, up 6% overall. This backlog is a great leading indicator for future recognized revenue.

You can see the subscription focus in the RPO breakdown:

• Total RPO was $43.5 billion, up 6%.
• Product RPO saw a stronger increase at 8%.
• Services RPO increased by 5%.

The focus on locking in future revenue is clear from the deferred revenue balance as well. Deferred Revenue stood at $28.0 billion at the end of Q1 FY 2026, which is up 2% total from the prior year period, showing customers are prepaying for services and software access. Finance: draft 13-week cash view by Friday.