Cisco announced its Q3 earnings numbers May 16, showing growth in key areas of networking, security, and applications. Chairman and CEO Chuck Robbins highlighted the company's strong business momentum during the call, spotlighting the shift to a software and subscription-based model. Deferred product revenue in that area is up 29 percent, a number that has doubled since he became CEO.
Robbins again pointed to the company's renewed focus on the core, and its journey to reinvent networking. Since introducing Intent-Based Networking last June, the company has announced several innovations, including bringing IBN to the Internet of Things, a move to help customers with security, automation and analytics as they wrangle the demands of thousands of IoT devices.
Another highlight in the networking business continues to be the adoption of the Catalyst 9000. The subscription-based switching platform is the fastest new product introduction in the company's history. The platform now has over 5,800 customers.
Robbins pointed out other strong areas, including security, which grew 11 percent year over year. He said the company is using artificial intelligence and machine learning to reduce time to detection of cybersecurity threats. One example is the Talos Intelligence Platform which blocks 20 billion threats daily.
Another area of strength highlighted is applications, which saw 19 percent growth. Cisco recently announced Spark will merge with Webex to become Webex Team applications, an integration of technology across platforms which gives a consistent experience for customers.
Robbins also touched on leadership changes, which he says aims to focus on customer experience and customer success. He noted the appointment of Maria Martinez as the company's first Customer Experience Officer. Gerri Elliot also recently joined as the new Chief Sales and Marketing Officer.
Robbins said Cisco's innovation pipeline has never been stronger. "We continue to make great progress in transforming towards more software and subscriptions. I am confident with our position in the industry and the impact we will continue to drive with our customers."
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