This segment rose 10% in fiscal 2018
As we can see in the below chart, Cisco’s (CSCO) Applications business drove the company’s revenue in fiscal 2018. This business segment accounted for 10% of total sales last fiscal year. Applications revenue rose 6% in the first two quarters, 19% in the third quarter, and 10% in the fourth quarter, indicating robust growth of 10% for fiscal 2018.
This business accounts for revenue from verticals such as Collaboration, Analytics, and the Internet of Things (or IoT). In May this year, Cisco acquired ACCOMPANY, which is an AI-driven (artificial intelligence) relationship intelligence platform that finds new prospects and navigates the selling process. The Applications business is a fast-growing business for Cisco.
Cisco enhances WebEx platform
During Cisco’s fourth-quarter earnings call, the company’s management announced the launch of WebEx Teams, which integrates meetings, calling, and other teamwork activities. Cisco CEO Chuck Robbins stated, “In Q4, we introduced major new enhancements to the platform including a new user designed for WebEx meetings and a new solution with Google, combining their contact center AI service with a WebEx platform.”
Cisco’s partnership with Google (GOOG) (GOOGL) could help the former offer its solutions to a large customer base. There are over 3 million customer service agents who use Cisco’s contact center software, and this partnership with Google could help to leverage data from AI (artificial intelligence) and automate responses in call centers.