Cisco’s Security Business Continued to Drive Revenue



Revenue rose 12% in Q4 2018

Cisco’s (CSCO) Security business is one of the company’s key revenue drivers. Revenue from this business segment rose 12% YoY (year-over-year) to $627 million in fiscal Q4 2018 and 9% to $2.35 billion in fiscal 2018. We can see that Cisco’s Security revenue has risen from $1.74 billion in fiscal 2015 to $1.97 billion in 2016 and $2.15 billion in 2017.

Article continues below advertisement

Top priority for enterprises

Network security is fast becoming a top priority for enterprises. During Cisco’s Q4 2018 earnings call, CEO Chuck Robbins stated, “Our strategy is to simplify and increase security efficacy through an architectural approach with products that work together and share analytics and actionable threat intelligence.” This architecture is supported by Talos, which according to Cisco is one of the largest commercial threat intelligence teams globally. Cisco is also confident with regards to identifying new and emerging threats such as the VPN (virtual private network) filter vulnerability.

Cisco continues to be the leading network and enterprise security company with 16.4% of the market share. Other major companies in this segment include Palo Alto Networks (PANW), Check Point (CHKP), Fortinet (FTNT), and Symantec (SYMC) with market shares of 13.9%, 11.5%, 10.8%, and 5%, respectively.

Cisco’s Security portfolio consists of services across network, endpoint, and cloud verticals. The company has continued to invest in product and technology innovations to gain traction and increase market share. Earlier this month, Cisco acquired Duo Security for $2.35 billion.


More From Market Realist