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Cisco Systems, Inc. 3
Annual Report 2015
Letter to Shareholders
revenue by 12% and demonstrating the relevance and
power of an integrated security architecture in the market
today. Wireless grew 11%, driven by continued Meraki
momentum. In Collaboration, the refresh of our product line
accelerated growth to 5%.
Switching revenue grew 5% year over year, with strength
in both the campus and data center switching businesses.
We are especially pleased with the continued momentum
of our Application Centric Infrastructure (ACI) portfolio,
including the Cisco Nexus 3000 and 9000 Series Switches
and the Cisco Application Policy Infrastructure Controller
(APIC). By the end of scal 2015, we had more than 4,100
Cisco Nexus 9000 Series customers and more than 900
APIC customers. The Cisco Nexus 9000 Series has seen
the fastest ramp of any data center switching product line
and, combined with the Cisco Nexus 3000 Series and
APIC, exited scal 2015 with an annualized revenue run
rate of approximately $1.8 billion, based on fourth quarter
performance, clearly outpacing our competitors’ software-
dened networking oerings in terms of annual sales.
Revenue for Next-Generation Network (NGN) Routing was
higher year over year by 1%, and our high-end routing
product platforms, the Cisco Network Convergence System
6000 Series Routers and the Cisco CRS-X, continued to
ramp well.
Service revenue increased 4% year over year, driven by
strong renewals, large multiyear service wins, and robust
growth in our advanced services portfolio of cloud, security,
consulting, and analytics.
Well Positioned to Capture Growth
Today, Cisco is operating from a position of tremendous
strength. Our customers know that their success depends
on fast innovation and the creation of entirely new IT
architectures and organizational structures. Whether they
are the disrupter or the incumbent, they are turning to Cisco
as their strategic partner.
The network is at the center of every market transition and
is the most strategic asset for our customers as they make
their businesses digital. In our view, no one comes close
to Cisco when it comes to the network. Our customers are
looking for strategic partners on their digital journey. We
have a very strong hand to play, and we’re playing it. By
combining incredible talent and innovation with a laser focus
on customers and a willingness to act on bold, creative
ideas, we believe we are establishing an unbeatable
position in the market and are on track to achieve our aim of
becoming the number-one IT company.
John T. Chambers Charles H. Robbins
Executive Chairman Chief Executive Ocer
September 8, 2015
A Special Thank You
Fiscal 2015 was my last year as CEO. I am extremely
honored to have led Cisco for the past twenty years, and
I’m proud of the role this company has played in changing
the way the world works, lives, plays, and learns. My single
greatest goal in the transition of the CEO role is that Cisco
is even more successful in the next decade than it has been
in the past.
As I look ahead, I could not be more condent in our
position, strategy, and growth prospects, along with the
unmatched power of our innovative portfolio. I could also
not be more condent that Chuck Robbins is the right
leader to drive Cisco’s success in its next chapter. I know
that he and his executive leadership team will build on the
things that have made us great to date, make changes
where needed, and drive innovation and new capabilities
at a faster pace. I also know that they will continue to be
supported by our talented employees, whose passion and
energy are making Cisco’s future possible.
I would like to take this opportunity to thank you, our
shareholders, for your loyalty and support during my twenty
years as CEO. I have greatly valued and enjoyed engaging
with you over this period and look forward to continuing
to do so in my new role as Executive Chairman. I am
extremely proud of what the Cisco family has accomplished
over the past two decades. It has been a fantastic,
transformational journey, but the next chapter promises to
be even more exciting.
John T. Chambers
Executive Chairman