Revenue fell 4% YoY
Technology (QQQ) company Cisco Systems’ (CSCO) Collaboration business saw a 4% revenue fall on a YoY (year-over-year) basis in fiscal 3Q17. Revenue in this segment fell from $1,064 million in fiscal 3Q16 to $1,022 million in fiscal 3Q17.
Cisco’s Collaboration business helps customers work together to achieve a common business purpose. Work can be synchronous, which means customers are able to work together in real time via online meetings, instant messaging, or video conferencing with tools such as Skype (MSFT).
Cisco leads the collaboration market with a share of 15%
In January 2017, Cisco announced the first all-in-one cloud-based collaboration and meeting room service known as the Cisco Spark Board. The Cisco Spark Board has several features including screen sharing, video conferencing, and interactive whiteboarding. The service has brought over 700 customers on board since its launch.
Cisco acquired MindMeld in fiscal 3Q17, which will enhance the collaboration experience through artificial intelligence (or AI) and machine learning. Cisco CEO Chuck Robbins stated, “As chat and voice quickly become the interfaces of choice, MindMeld’s AI technology will enable Cisco to deliver unique experiences throughout its portfolio. This acquisition will power new conversational interfaces for Cisco’s collaboration products, revolutionizing how users will interact with our technology while increasing ease-of-use and enabling new capabilities.”
According to a research report from Synergy Research Group, Cisco leads the Collaboration market with a share of 15% at the end of 4Q16. The other players in this market include Microsoft (MSFT) and IBM (IBM) with market shares of 12% and 4%, respectively.