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Cisco (CSCO) Designing New Security Cloud for IT Ecosystem

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Cisco Systems (CSCO - Free Report) recently announced that it is designing a new Securities Cloud Platform that will provide comprehensive securities solutions to protect the entire IT ecosystem while avoiding public cloud lock-in.

Per Gartner, 81% of organizations have a multi-cloud strategy. Organizations are utilizing cloud services for everything from hosting data centers to enterprise applications.

Concurrent with this rising proliferation of hybrid work environments and rapid growth of the Internet of Things (IoT), cyber threats are also increasing. This has resulted in a growing demand for securities cloud platforms. Organizations are investing heavily to protect their IT ecosystem.

Consequently, Cisco is designing the new securities cloud platform in sync with its strategic vision to cater to the growing need for end-to-end security across hybrid multi-cloud environments.

Cisco Security Cloud platform is a comprehensive platform that brings together Cisco’s entire security portfolio under one roof. The solutions provided by Cisco include Cloud-native and multi-cloud, Unified, Simplified, and AI/ML-driven solutions.

To safely move operations to hybrid cloud environments, Cisco is introducing a patent-pending Wi-Fi Fingerprint capability that will verify the user and device identity without compromising location privacy. This new solution separates Cisco’s cloud solutions from its peers.

Cisco Expands Security Portfolio to Drive Top Line

Cisco’s third-quarter 2022 results were negatively impacted by the war in Ukraine and COVID-related lockdowns in China, which began in late March. The lockdowns resulted in a severe shortage of components that hurt Cisco’s ability to ship products to customers.

Revenues in the third quarter of 2022 inched up only 0.2% year over year to $12.84 billion and lagged the Zacks Consensus Estimate by 3.70%.

Ceasing operations in Russia impacted the company’s revenue growth by $200 million, while the China lockdowns hurt the top line by $300 million. Cisco has lowered its revenue guidance for the ongoing quarter.

As such, Cisco has been consistently undertaking initiatives to diversify its securities portfolio to protect the entire IT ecosystem at a reduced cost.

Cisco’s initiative to create the most comprehensive securities cloud solutions is expected to drive revenues in the long term.

However, the company is facing increasing competition from the likes of Wipro Limited (WIT - Free Report) in cloud securities solutions.

Wipro recently expanded its collaboration with VMware to help customers move data to the cloud at a reduced cost and operate in a multi-cloud infrastructure.

With the recent collaboration, Wipro FullStride cloud services will be able to provide its security services to customers for no additional cost and protect data while operating in a multi-cloud architecture. This is expected to help Wipro garner more customers amid rising competition.

Zacks Rank & Stocks to Consider

Cisco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Here are some better-ranked stocks to consider for generating better returns from the broader technology sector.

Axcelis Technologies (ACLS - Free Report) flaunts a Zacks Rank 1.

ACLS’ shares have fallen 15.6% in the year-to-date period compared with the Zacks Electronics - Manufacturing Machinery industry’s decline of 22.9%.

Analog Devices (ADI - Free Report) currently carries a Zacks Rank #2 (Buy).

ADI’s shares have fallen 6% in the year-to-date period compared with the Zacks Semiconductor - Analog and Mixed industry’s decline of 13.8%.


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