Cisco Systems Inc. – a leading IT firm – announced on Tuesday that will enter the subscription services market with a new security automation tool for companies.
This new tool will be a big change from the ordinary course of Cisco’s flagship business. The company, which is based in San Jose, provides networking equipment that drives traffic on the internet. Now, it hopes its clients will subscribe to the service, creating a recurring revenue stream.
“We have, over the last two years, had an increasing focus on our software and subscription business. For this transition to software and subscription to really become material over time we needed to find a way to bring subscription value to the core networking,” said Cisco CEO Chuck Robbins.
This new tool will be able to detect malware from amidst a cluster of traffic visiting websites.
“We’ve heard a lot over the last 48 hours about their commitment to tax reform, which is incredibly important to Cisco. That’s the No. 1 thing that we would like to see accomplished,” said Robbins, who was extremely satisfied by the Trump administration’s pro-business tax reform stances.
This announcement came a day after President Trump met with tech leaders in D.C. The meeting was attended by several tech leaders including Apple CEO Tim Cook, Microsoft CEO Satya Nadella, and Amazon CEO Jeff Bezos. Chuck Robbins was scheduled to be a part of this meeting, but had to pull out due to the product launch.
Whether the company finds success in the subscription model or decides to offer its services in the traditional manner is definitely something to look forward to.
Megha Shah for TechFunnel.com