Just as Cisco invests heavily into its emerging markets business, revenue from that market is sliding, according notes from several financial analyst firms.
Morgan Stanley noted that Cisco, in its fiscal first quarter filing, showed a 19% year-on-year growth in its emerging markets business in its October quarter. This compares to a 35% year-on-year growth in its August quarter, and 36% year-on-year growth in the same quarter last year, according to a post in SeekingAlpha.com.
The post also cites Banc of America reporting that Cisco remained confident with its emerging markets business as those sectors required a single-vendor integrated network, rather than best of breed. However, Cisco acknowledges that starting from scratch in countries with no infrastructure could mean Cisco waiting a bit before seeing some significant dollar rewards there.
That and having to deal with some emerging markets employees going astray could mean put roadblocks in Cisco’s journey into new markets.
More on Cisco in China, Saudi Arabia and India.
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