How Cisco Became a Networking and Cloud Computing Powerhouse

Cisco, one of the largest technology companies in the world, specializes in networking, cyber security, cloud computing, the Internet of Things, and video collaboration.

Cisco is committed to innovation and research through which it develops technology that changes the way people communicate.

Interesting Statistics From 2021 that Highlight Cisco’s Success:

• Total revenue of $49.8 billion 
• Net income of $10.6 billion 
• Market capitalization of 178.35 billion
• Stock price of $43.07
• 79,500 total employees
• Market share of 38.7 in ethernet switch and router market

Let’s explore Cisco’s history to find out how it became the biggest provider of networking solutions and a pioneer in the field of cloud computing.

Cisco System’s Innovation Strategy Revolutionizes Router Technology

In 1984, two computer scientists discovered how to connect computer networks housed in separate buildings on the Standard University campus.

Those two scientists were Leonard Bosack and Sandra Lerner and our power couple soon realized that their newly discovered router technology could be modified for large-scale use in corporate organizations and government agencies.

The idea laid the foundation for Cisco Systems success and the company would go on to become the leading supplier of computer networking products and services to corporations, research institutes, and government organizations.

The Invention of the Multi-Protocol Router Gets Cisco Going

In 1985, Cisco Systems sold its first product, which was a network interface card, to a company called Digital Equipment Corporation.

But Cisco’s big break was yet to come.

The next year, the company developed a new product called AGS Multi-Protocol Router which was an advanced version of an internetworking router.

It was a device that automatically selected the best route for data to flow between two networks enabling faster communication between different networks.

Cisco’s multi-protocol router was revolutionary because it could be used on any kind of network even those with different protocols or data transmission standards.

It could also be used with different types of computers, from IBM-compatible personal computers and IBM mainframes to Apple Macintosh computers and UNIX workstations.

Hence, Cisco Systems became the first company to produce a multi-protocol router for commercial use that could be used by all kinds of organizations to connect their computer networks in different locations.

By 1987, Cisco Systems was selling almost $250,000 worth of routers per month (almost $652,000 today after adjusting for inflation). Annual sales for that year climbed to $1.5 million ($3.9 million after adjusting for inflation).

But the company never stopped innovating and soon introduced the Interior Gateway Routing Protocol (IGRP). It was a distance vector routing protocol that could be used by routers to exchange information about IP routes within an autonomous system.

By 1989, Cisco Systems had released more innovative products such as the Border Gateway Protocol (BGP), Multiprotocol BGP (MP-BGP) for DCN Networks, Enhanced Ethernet interface, and the cBus Controller for Fiber Distributed Data Interface.

The new products were all designed to speed up network-to-network communications to minimize any time delays.

For example, the BGP protocol was designed specifically for the internet. The protocol ensured that routers picked the most efficient route to deliver Internet traffic.

Although Cisco Systems innovation in router technology helped the company expand its product offerings, its market base was still limited. Hence, the company developed a new marketing strategy to reach out to more customers.

Cisco System’s Marketing Strategy Secures Mainstream Consumers

The company initially marketed its products to individual scientists at research centers, government facilities, and universities.

However, the company now wanted to expand its reach to mainstream corporations with branches in geographically diverse regions.

But, Cisco Systems needed an impressive lineup of products to appeal to these new customers. Plus, the new products had to be tailor-made to meet the exclusive needs of commercial entities.

So, Cisco Systems went back to the drawing board to do what it does best, and that is innovating. The company upgraded many of its routers to serve an even greater range of communication protocols so that clients could use the routers with any network.

In fact, Cisco System’s routers supported more protocols than any other router manufacturer in the industry. So, the company was well ahead of the competition when the commercial market for router technology began to take off.

However, Cisco Systems was still a young company, and it needed to secure investments to fuel growth over the coming years. So, the company reached out to Sequoia Capital for assistance.

It would prove to be a symbiotic partnership. Cisco Systems received the required financial support while Donald T. Valentine of Sequoia Capital acquired the role of chairperson in Cisco Systems.

Valentine soon brought in John Morgridge as the new CEO and president of Cisco Systems. Under Morgridge’s lead, the company built up a dedicated sales team to market its products to corporate clients.

During this period, all kinds of organizations were creating their own local area networks to connect different branches. So, Morgridge’s team knew that the market for their products was going to expand, so they redoubled their efforts to reach out to clients.

Soon, Cisco Systems was selling products to all kinds of major organizations. The company helped connect the computer systems of different offices of the same organization for example, by connecting the regional and local branches.

In 1991, the company recorded total sales revenue of $183.2 million ($398.6 million today) and a net income of $43.2 million ($94.0 million today).

By 1992, sales revenue had crossed the $339.6 million mark ($717.2 million today), and net income stood at $84.4 million ($178.3 million today).

In 1993, Cisco Systems entered into a joint venture with AT & T and StrataCom to develop asynchronous transfer mode (ATM) protocols for Frame Relay networks. ATM technology provided high-speed communications of data, voice, video, and images without the use of routers.

So, Cisco Systems developed a strategy to include ATMs in all of its new product offerings, and the following year the company launched its first ATM switch for commercial use.

The company also released an upgraded version of its high-end router called the Cisco 7000.

It also released a more economical router called the Cisco 2000 for smaller companies that wanted to link remote employees or small branches but could not afford the pricier Cisco 7000.

Indeed, Cisco Systems was dubbed the second fastest growing company in the United States by Fortune Magazine based on its phenomenal growth in such a short time from its inception in 1984.

Key Takeaway 1: Innovation Works When It Serves Your Customers

Cisco Systems' foundation was laid in the spirit of innovation.

The company quickly established itself as a powerhouse of innovation with the release of multiple products such as the multi-protocol router, the Interior Gateway Routing Protocol, the ATM switch, and the Cisco 7000.

After all, nothing draws in customers like an innovative new product that can eliminate major pain points and improve organizational productivity. Cisco Systems products did just that by helping companies connect their local area networks that were present in different locations.

The company also made sure to provide products that were tailor-made for clients’ needs and which supported more protocols than any other service provider.

Plus, Cisco Systems was also successful in expanding its customer base because it created products that catered to all kinds of consumers from mainstream corporations to small companies who could only purchase low-priced products.

Cisco System’s Acquisition Strategy Makes it a One-Stop Networking Solution

The '90s can rightly be called the decade of acquisitions for Cisco Systems. The company developed a comprehensive plan to acquire businesses that could enhance its capabilities and product offerings with the influx of fresh ideas and technology.

This is the story of how Cisco Systems became the leader of the networking industry, a position that it retains to this day.

Cisco Systems International Expansion Increases Sales Revenue

So far, the company had served clients in the U.S and Japan, but now it sought to expand its international presence to reach customers in other parts of the world.

In 1993, Cisco Systems established subsidiaries in Japan and Australia, and Hong Kong. The company also established a European Technical Assistance Center in Belgium.

In 1992, international sales accounted for only 36% of total sales, but the newly established subsidiaries helped increase international sales to 39%. Cisco Systems international strategy helped boost international sales to 42% of total sales by 1994.

The deregulation of the U.S telephone industry brought new opportunities for Cisco Systems. The company could now market its products to long-distance telephone companies that wanted to partner with a router manufacturer like Cisco Systems to expand their data communications products and services.

Cisco Systems entered a joint venture with MCI International to provide routers for MCI’s telephone lines. The company also signed agreements with Bell Atlantic Corp. and U.S. West Information Systems Inc.

In 1993, the company signed an agreement with Pacific Bell to become the main supplier of routers for the company’s telephone networks.

Cisco Systems also expanded its presence in the international telecommunications market. It entered into original equipment manufacturer agreements with multiple European telecommunications companies, including British Telecom, Alcatel, and Siemens.

Furthermore, the company also expanded its market presence at home by partnering with software companies such as Novell and Microsoft Corporation. 

Cisco Systems marketing strategy involved a joint venture with Microsoft to use Microsoft’s market channels to advertise its own products such as the Cisco PC-based router card.

It also provided routers to Novell to link Novell’s Netware software network with Unix-based networks.

Cisco’s Acquisition Strategy for Better Networking Solutions

In 1993, Cisco Systems initiated a phase of aggressive acquisitions to expand its product offerings.

Crescendo Communications was the first in a long line of acquisitions by Cisco Systems. The company acquired Crescendo Communications for $95 million ($194.8 million today) to gain access to advanced ATM switching technologies that were incorporated into the latest Cisco Catalyst 5000 switches.

The following year, Cisco Systems acquired Newport Systems Solutions for $93 million ($185.9 million today) in stock. The acquisition gave Cisco Systems access to Newport’s LAN2LAN software that was used to connect different local area networks.

In 1994, Cisco Systems acquired two more companies that were involved in the production of switching technologies. The first acquisition was Kalpana Inc for $240 million ($477.9 million) and the other one was LightStream Corp. for $120 million (239.9 million today).

The two acquisitions helped Cisco Systems gain access to better Ethernet and ATM switching technologies. The acquisitions helped Cisco Systems develop Cisco Fusion.

Cisco Fusion was a new networking architecture that helped clients gradually transition from routers to advanced switched networks.

In 1994, the company released a range of new products such as ATM Interface Processor and the Catalyst FDDI-to-Ethernet LAN switch through its Cisco Fusion initiative.

The Fusion initiative was a major Cisco Systems achievement and the company recorded a whopping $1.24 billion ($2.5 billion today) in net sales in fiscal year 1994. Net income stood at $314.9 million ($629.6 million today) which was an increase of 82% from the previous year.

But the company had more acquisitions lined up so that it could keep ahead of its competition. In 1995, the company acquired Grand Junction Inc. for $400 million ($777.7 million today) to gain access to its Fast Ethernet and Ethernet switching technology.

The following year the company spent $220 million ($415.5 million today) to acquire Granite Systems Inc. which was a company known for its Gigabit Ethernet switches.

However, Cisco System’s biggest acquisition during this period was that of StrataCom, Inc. The hefty $4.67 billion ($8.6 billion today) acquisition gave Cisco Systems access to advanced ATM and Frame Relay WAN switching equipment that could handle both audio and video data communications.

Plus, the acquisition of StrataCom Inc. was a strategic move on the part of Cisco Systems to gain more customers in the telecommunications access providers market.

Cisco Systems was also keeping an eye on emerging networking sectors such as DSL, and internet telephony.

In 1998, Cisco Systems acquired NetSpeed, Inc. which made DSL equipment. In those days, DSL was the fastest way for homes and small businesses to access the Internet through existing telephone lines.

The company also acquired LightSpeed International, Inc. and Selsius Systems, Inc. to gain a foothold in the internet telephony sector.

Other emerging areas at the time included fiber-optic networking and wireless networking. In 1999, Cisco Systems acquired the fiber-optic company Cerent Corporation for an enormous $7.6 billion ($13.5 billion today) price tag.

The company also acquired the Italian firm Pirelli which made fiber-optic technology that could split light into 128 ‘colors’ with each one carrying a separate piece of audio or video data.

Fiber-optics technology enabled telecommunications companies to handle more audio and video transmissions than ever before, so Cisco System’s acquisition of Cerent Co. and Pirelli was a well-planned maneuver to better serve its telecommunications clients.

Wireless technology was also an emerging field at the time. In 1999, Cisco Systems acquired Aironet Wireless for $800 million ($1.4 billion today) to make wireless local area networks for homes and offices.

Key Takeaway 2: Make Strategic Acquisitions To Expand To Adjacent Categories

Cisco Systems' aggressive acquisition strategy helped the company expand its product line to include upgraded networking solutions that helped the company remain relevant to consumers.

By the time the 90s wound to a close, Cisco Systems had managed to secure customers beyond corporations and research institutes. The company was now a major provider of networking solutions to multiple firms in the telecommunications industry, both at home and abroad.

With the addition of new technologies to its portfolio, Cisco Systems was able to enter emerging sectors in the networking industry well ahead of the competition.

It was able to incorporate the latest technology into its products to improve their performance so that they could meet the evolving needs of its biggest consumers.

The move paid off, and Cisco System’s market capitalization rose to $100 billion in 1998 to make the company the industry leader in networking products and services. Cisco Systems’ revenue also crossed the $12.15 billion mark by the time the financial year 1999 came to a close.

Cisco’s Growth Strategy for the 21st Century

Cisco Systems' market capitalization surpassed the $500 billion mark ($860.3 billion today) in 2000 and revenues stood at $906 million ($1.6 billion today) for just the second quarter of the 2000 fiscal year.

Soon, Cisco Systems then CEO John Chambers announced plans for an acquisition-led growth strategy to power growth for the coming years.

The strategy would be characterized by strategic alliances with other companies in the area of telecommunications and network security to double Cisco's existing revenue.

Cisco’s ‘Quadruple Play’ Business Model

The company had spent much of the 90s developing strategic partnerships with telecommunications firms, but Cisco Systems now needed an updated strategy to remain a key provider of products and services to its industry clients.

Many telecommunications companies at the time wanted to provide their customers with a complete package deal that included broadband Internet access, Internet-based telephone service, wireless calling, and video services such as video-on-demand.

Hence, Cisco Systems pursued a ‘quadruple play' business strategy to become a one-stop provider of all kinds of services from broadband internet, telephone, and paid TV services. But to do that, the company needed to upgrade its video product offerings.

In 2005, Cisco Systems purchased KISS Technology which was a manufacturer of networked DVD players. A few months later, the company also acquired Scientific-Atlanta, Inc., a key producer of cable television set-top boxes.

Both acquisitions helped Cisco Systems expand its video offerings, thereby completing its 'quadruple play' strategy. The strategy gave Cisco Systems a competitive advantage over rival suppliers to major telecommunications companies.

Cisco’s Acquisition-led Growth Strategy 

In 2006, Cisco Systems shortened its name to Cisco to make the company a household name.

The company also continued to expand its international presence with the establishment of a Globalization Centre East in India.

However, the company’s main strategy for growth was characterized by entry into new markets through strategic acquisitions and partnerships.

A good example is Cisco’s entry into the network security area through a series of acquisitions from 2007 to 2015.

Starting in 2007, Cisco acquired IronPort for $830 million ($1.2 billion today). IronPort was a well-known developer of anti-spam and email security services. The company was integrated into Cisco’s Security business division, and IronPort’s SenderBase technology was used to create SensorBase.

SensorBase was a service provided by Cisco that let devices create a risk profile on IP addresses to keep users protected from malicious content from unsafe email addresses and suspicious websites.

Furthermore, Cisco acquired two cyber security firms in 2013 for enhanced cyber threat protection. The two companies were Cognitive Security and SourceFire.

The following year, Cisco acquired ThreatGRID to gain access to dynamic malware analysis and threat intelligence technology.

In 2015, Cisco acquired Embrane, which was a software start-up that provided network services such as firewalls, VPN termination, and SSL offload.

Cisco also acquired Portcullis Computer Security in 2015. The UK-based firm provided security services for enterprise clients and government agencies.

Other key acquisitions included OpenDNS, a company that monitored domain name requests for added security, and Lancope, which focused on the detection of potential cyber security threats.

Cisco also entered other markets besides network security, such as network management, and network intelligence.

For instance, Cisco carried out several acquisitions to expand its portfolio in network management.

In 2011, Cisco acquired a network management software company called Pari Network. It was followed by the 2013 acquisition of Intucell for $475 million ($625.7 million today). The move helped Cisco upgrade its mobile network management services.

The following year, Cisco acquired Tail-f Systems which was a leading provider of multi-vendor network service orchestration solutions.

Other strategic acquisitions include that of ParStream in 2015. The German-based company provided an analytics database to help businesses analyze large amounts of data and store it in real-time on their networks.

It was followed by the 2016 acquisition of Springpath which provided the flagship technological input needed to develop Cisco’s HyperFlex Systems.

Finally, Cisco completed the acquisition of a network intelligence firm ThousandEyes in 2020. The firm was a leading developer of software that could be used to analyze the performance of local and wide area networks.

Key Takeaway 3: Holistic Growth Strategy Increases Market Share in Emerging Industries

The corporate team at Cisco has always kept a close eye on market conditions and emerging areas.

From 2005 onwards, the top leadership at Cisco was keenly aware that the technology market was slowing down, especially the hardware sector.

As a result, Cisco began its transition from a producer of hardware devices to becoming a provider of a wide range of software products and services.

The company moved away from the production of routers and processors to offer software solutions to its clients.

It could not have been possible without Cisco's expansion into emerging areas such as network management, intelligence, and security.

Entry into these new areas helped the company provide new services, including products for both physical and virtual networks.

Some of the new services included cyber security services, data analytics capabilities, and network management solutions.

The strategy proved to be successful and Cisco’s revenue growth in 10 years was approximately $14.6 billion. Total revenue stood at $25.8 billion ($39.1 billion today) in 2005. It increased to $40.4 billion in 2010 ($54.9 billion today) and peaked at $49.16 billion in 2015.

Hence, Cisco continued to follow a similar growth strategy in the years to come to sustain its annual revenue generation at the same level.

Cisco’s Digital Transformation Strategy Harnesses the Power of Cloud Computing

Cisco is redefining itself for the future. The company is moving away from the production of hardware devices to software solutions.

Hence, Cisco chalked out a strategy to invest in the field of cloud computing. The plan involved acquiring the much-needed technology through targeted acquisitions and partnerships.

The company also set out to develop its own cloud-based products and services which are being used to power Cisco’s digital transformation. Cisco also propels the digital transformation of other companies by providing these services to its corporate clients.

Let's take a look at Cisco's digital transformation through the power of cloud computing.

Cisco’s Corporate Strategy to Unlock the Cloud Computing Market

Cisco has always kept a close eye on emerging areas that have the potential to fuel company growth in the years to come. Hence, Cisco began a gradual transition towards cloud-based products in 2015 .

The company joined hands with ARM Holdings, Dell, Intel, Microsoft, and Princeton University to launch the OpenFog Consortium to promote the development of fog computing.

To increase market share Cisco began making certain carefully planned acquisitions. It also acquired Tropo which was an API platform that simplified the integration of real-time communication and collaboration capabilities in a wide range of applications.

In 2015, Cisco also acquired MaintenanceNet which was well-known for its ServiceExchange platform. The platform mainly provided cloud-based contract management services.

Cisco also acquired a tech company in India called Pawaa. The company provided Cisco access to secure cloud-based file-sharing software.

In 2016, Cisco acquired a software-defined wide area network (SD-WAN) startup called VeloCloud. The company provided cloud services to help businesses configure and optimize their networks between different office branches.

It also acquired the cloud security company called CloudLock for $293 million in 2016. It was followed by the acquisition of SD-WAN company Viptela Inc. for $610 million in 2017.

That same year, Cisco acquired Broadsoft for $1.9 billion to penetrate further into the areas of cloud communication and collaboration.

Cisco also launched its first cloud-based internet gateway called Cisco Umbrella in 2017. The gateway provided secure internet access to users who needed an alternative way to connect to remote data centers without having to rely on corporate networks or VPNs.

The move paid off and Cisco’s price-per-share value increased by 7%. The company’s earnings per share ratio also increased from 60 to 61 cents per share.

It was followed by a string of well-planned acquisitions, starting with Accompany for $270 million in 2018 and Voicea in 2019. Both companies specialized in providing AI-driven solutions.

Cisco also acquired a customer experience management company called CloudCherry in 2019.

Cisco’s Digital Transformation Strategy for Better & Faster Service

Cisco has developed a three-pronged strategy to digitally transform its workplace and operating model.

Cloud-based solutions form a key part of this strategy.

The strategy involves digitally transforming the company’s business model, workplace, and customer experience.

Firstly, Cisco’s innovation in cloud technology is helping transform the company’s operating model by aligning its internal IT processes in five key areas:

1. Security: a policy-driven approach to enable end-to-end security for the entire value chain.
2. Simplification: an automated supply chain simplifies the operating model resulting in productivity gains. Automation results in accurate demand planning, real-time inventory

management, and reliable fulfillment.

3. Automation: the company is using modular IT to automate network edge, data center, and cloud processes.
4. Monitoring: continuously monitor data to better support real-time business decisions.
5. Innovation: the company is always innovating to provide stakeholders with enhanced capabilities while minimizing vulnerabilities at the same time.

Secondly, Cisco is digitizing the workspace to create a better workplace environment for its employees. The goal is to improve employee productivity and reduce operating costs.

Cisco IT is equipping employees with digital tools so that they can better respond to consumer needs. The new digital tools include a dCloud self-service platform where customers can try out more than 200 Cisco services.

The company has also started a Spark-based customer service program. Cisco technicians use this platform to bring together experts, engineers, and sales team representatives to create tailor-made solutions for each client.

Finally, Cisco is digitally transforming critical business processes to improve the overall customer experience. The company has singled out five key areas where digital transformation is most needed:

1. Manufacturing: The company is using machine learning tools to conduct adaptive testing in manufacturing processes. Machine learning has also helped Cisco move towards perspective analysis which has resulted in a cost saving of $10 million.
2. Supplier Collaboration: Cisco has created a cloud-based platform to manage its global supply and inventory processes. Connecting suppliers through a single platform have enabled Cisco to bridge the gap between demand and supply 35 percent faster.
3. IT: Cisco has developed an agile IT approach by integrating Docker Containers, OpenShift, and Big Data into its internal processes. It has helped the company develop new features faster than ever before to provide customers with improved capabilities.
4. Sales: Cisco has integrated Salesforce, LinkedIn, WebEx, and Twillio into a single digital leads platform. It has helped the company generate better sales insights and improved the overall forecasting process for clients.
5. Energy Management: Cisco is digitizing its factories to reduce the company’s carbon footprint. Cisco factories are now equipped with over 1300 sensors to create an improved monitoring system. The company is also using a cloud-based solution to improve power management for a cleaner factory.

How Is Cisco Helping Its Clients Embrace Digital Transformation?

Cisco provides cloud-based services to clients through a Software as Service model (SaaS) and helps them digitize their companies in three ways:

• Innovative Business Models: Cisco helps clients develop new business models to create new ways of doing business. It also helps companies collect data from all parts of the value chain. Hence, clients can achieve leaner operations, and greater agility to respond to market changes. They are also able to get products into the market faster than ever before.
• Digitized Workforce: Cisco is revolutionizing the world of remote work with a series of tailor-made services and tools. The tools provide better connectivity and collaboration capabilities to remote workers. As a result, clients can improve organizational productivity using Cisco's digital tools.
• Improved Customer Experience: Cisco helps corporate clients provide an omnichannel experience for each customer. The company also provides digital solutions that help corporations gain better insight into customer preferences. So, corporations can better predict the kind of products customers are looking for.

Key Takeaway 4: Digital Transformation Is The Bare Minimum To Stay Relevant

In an increasingly globalized and interconnected world, customers want quality service without unnecessary waiting times. Hence, digital transformation is the need of the hour.

Cisco has taken this lesson to heart and has digitally transformed its entire business model. It has also equipped its customer support staff with digital tools and resources such as the Spark-based customer service program.

The overall aim is to ensure seamless interaction with customers on all levels so that the company can better predict customer preferences.

Digitalization has also sped up product delivery. For instance, the Software as a Service (SaaS) model has cut down processing times from 45 days to 2 days.

Furthermore, an agile IT approach has made it possible for Cisco to deliver almost 73% of its services through a continuous delivery model.

As a result, the number of delivered capabilities has doubled while vulnerabilities have been reduced by over 60%. Hence, Cisco has seen a 92% increase in the quality of its services.

To sum up, digital transformation improves customer experience because it brings new tools to the table that employees can use to address customers’ needs. It also shortens processing and delivery times, ensuring that customers get the services they need when they need them.

Why Is Cisco So Successful?

Cisco has come a long way from producing router protocols. Today, the company is a leading provider of networking, cloud, and cyber security services, continuing to set the bar higher.

Growth of Cisco Reflected by Numbers

Key Strategic Takeaways From Cisco

Cisco’s growth journey offers various lessons for organizations and individuals alike.

Some of the key strategic takeaways are as follows:

1. Innovation Opens Up New Possibilities for Customers

Cisco has a well-known record of developing innovative products. The first product the multi-protocol router made it possible to connect different networks housed in separate locations. The product changed the way individuals and businesses communicated.

Today, Cisco continues to change the way we communicate. The company’s recent cloud-based products have opened up new opportunities for communication and collaboration between businesses and remote workers.

Hence, continuous innovation is the best way to create products that change the way we do things for the better.

2. Focus on Emerging Markets to Reach More Customers

The top leadership at Cisco always keeps a close watch on emerging areas that can be exploited as future avenues of growth.

The company keeps a close eye on the latest technological developments and identifies sectors that are likely to see higher demand in the future.

Quickly establishing its presence in new markets helps Cisco expand beyond its original business and add more services to its arsenal. Hence, it can cater to a wider group of customers.

3. Make Targeted Acquisitions to Improve Product Offerings

Cisco also follows a strategy of targeted acquisitions to diversify its product offerings. Strategic acquisitions give the company access to new technology that can it can use to expand its product line.

For instance, Cisco's various acquisitions in the cloud computing industry gave it access to software that is used to create its own cloud-based internet gateway. As a result, Cisco was able to provide a new service to existing users.

Hence, well-planned acquisitions unlock more opportunities for innovation and help companies develop more products and services.

4. Leverage Digital Tools to Delight Customers

Cisco has used digital tools to revamp its entire operating model. The company has automated internal processes such as manufacturing to speed up the production of new products.

It is also using cloud-based products to reduce processing times so that customers can avail services faster than ever before.

Finally, digitalization is helping the company perform perspective analysis so that it can predict customer preferences. It will help the company upgrade its products in line with customer needs well ahead of competitors.

Cisco is an industry leader in networking, cloud, and cyber security solutions. The company offers services in the areas of cloud computing, software, security, collaboration, networking, and the Internet of Things (IoT). The company also provides tailor-made solutions to various industries and businesses. Plus, Cisco is changing the way employees communicate and collaborate remotely through its cloud services. Cisco’s technology is connecting the previously unconnected to create an even more integrated world than ever before.

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