Cisco Systems Enhances Network Security to Curb Open Networking
Telecom Pushes Tech ETFs Even Higher Last Week
Cisco to offer complete networking solutions
Cisco Systems (CSCO) is looking to enhance its network security features. The company wants to attract enterprise and service provider customers and convince them to use the company’s proprietary products instead of open architecture network solutions.
Cisco’s focus is to offer complete networking solutions that include hardware and software segments. In the above graph, you can see that Cisco has seen a sharp increase of 14% in its network security segment between 3Q14 and 3Q15.
Cisco’s networking solutions will help Cisco bundle its proprietary offering as well as enhance its software offering segment. This will lead to an increase in Cisco’s router and switches sales, which will help the company reduce the market share decline in that segment.
Cisco is also set to benefit from a substantial increase in cyber breaches, which has become an area of concern for both retail and enterprise users. With rapid growth in the IoT (Internet of Things) segment, security is expected to be the main differentiating factor for Cisco and its peers. According to analysts, Cisco is on track offering a diverse product portfolio that will help the company generate higher revenues.
Cisco Systems diversifies product portfolio through acquisitions
Cisco Systems has acquired a number of companies since 2013, which has enhanced the rapid evolution of its security business. In 2013, Cisco acquired Sourcefire and entered the intrusion detection and prevention systems segment. In order to help enterprise and service providers fight security-related problems, Cisco recently launched new offerings catering to those needs.
In 2015, Cisco acquired OpenDNS, a cloud-based security company, for $635 million. The acquisition is expected to increase Cisco’s presence in the security segment.
Cisco constitutes 3.78% of the PureFunds ISE Cyber Security ETF (HACK). Peers such as Palo Alto Networks (PANW) and Juniper Networks (JNPR) constitute 4.51% and 4.47% of the ETF, respectively.
Cisco Systems also constitutes 3.63% of the Technology Select Sector SPDR ETF (XLK).
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