In my post earlier today on Cisco’s latest quarterly results, I mentioned in passing — one line, really — that Cisco’s security revenue was flat.
Jon Oltsik, a principal analyst at Enterprise Strategy Group, expounds on Cisco’s inability to boost its security revenue.
He mentions that other vendors — Check Point, Juniper, Symantec, and McAfee — are growing their Internet-security businesses. Explaining the discrepancy, Oltsik suggests that Cisco has taken its eye off the security ball, diverted and distracted by other priorities.
Security was one of the advanced technologies Cisco targeted for sustained growth. It’s entirely possible, as Oltsik suggests, that Cisco’s security-related quarterly results are lagging because of benign neglect and diffusion of strategic focus.
I know Cisco hasn’t given up on security, which is integral to the availability and integrity of its customers’ communications and operations. What’s more, Cisco is extending its security portfolio into new areas, such as smart grids. Nonetheless, Oltsik is correct in noting that other security vendors have outperformed Cisco recently.
We’ll have to see how the networking giant responds.