Will Cisco switching be trumped by advanced technologies as early as next year?

It's illuminating to examine various Cisco product group sales over the past 9 years and chart their evolution as a percentage of Cisco yearly net sales. Advanced Technologies stands out as one group that has increased its contribution to Cisco sales since the company began recording sales from the group in 2003. It "vanquished" Routers in 2007 by grabbing a higher percentage of Cisco's net sales (23.1% for Advanced Technologies vs. 19.8% for Routers). Perhaps at the current rate Switching could be "trumped" by Advanced Technologies as early as next year?

Cisco Product Group Sales as a Percentage of Yearly Net Sales:

Cisco Fiscal Year2008 2007 2006 2005 2004 2003 2002 2001 2000
Routers 20.0% 19.8% 21.1% 22.2% 24.5% 25.7% 29.6% 32.2 37.4%
Switches 33.7% 35.7% 38.0% 40.7% 40.7% 41.0% 40.0% 40.3 36.9%
Adv Tech 24.6% 23.1% 19.7% 17.8% 15.1% 10.6% - - -
Service 16.3% 15.6% 16.0% 15.9% 15.8% 17.5% 17.2% 12.3% -
Other 5.4% 5.7% 5.2% 3.4% 3.8% 5.2% 8.0% 6.9% 13.9%
Access - - - - - - 5.1% 8.3% 11.8%

Source: Cisco Form 10-K Filings with the U.S. Securities and Exchange Commission. Note: Advanced Technologies (Adv Tech) - inlcudes video systems sales, unified communications sales, home networking product sales, security products sales, wireless LAN product sales, storage area networking product sales and application networking services sales. Service - includes the sale of technical support service contracts and consulting support services for specific networking needs. Other - includes sales of optical networking products, sales of IP-based communications solutions to service providers as well as sales of emerging technology products. Access - includes the sale of access concentrators and digital subscriber line access multiplexer (DSLAM) products.


Do you think it's possible for Switching to be "trumped" by Advanced Technologies as early as next year?

Brad Reese
http://www.BradReese.Com Quotes on New Cisco Equipment One year warranty on refurbished: Cisco Aironet Cisco Power Supplies Cisco VoIP Gateways One year warranty Refurbished Cisco

  
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