Cisco 2015 Annual Report Download - page 55

Product Revenue by Groups of Similar Products
In addition to the primary view on a geographic basis, we also prepare financial information related to groups of similar products
and customer markets for various purposes. Our product categories consist of the following categories (with subcategories in
parentheses): Switching (fixed switching, modular switching, and storage); NGN Routing (high-end routers, mid-range and low-
end routers, and other NGN Routing products); Collaboration (unified communications, Cisco TelePresence, and conferencing);
Service Provider Video (infrastructure, video software, and solutions and cable access); Data Center; Wireless; Security; and
Other Products. The Other Products category consists primarily of emerging technology products and other networking products.
The following table presents revenue for groups of similar products (in millions, except percentages):
Years Ended 2015 vs. 2014 2014 vs. 2013
July 25,
2015
July 26,
2014
July 27,
2013
Variance
in Dollars
Variance
in Percent
Variance
in Dollars
Variance
in Percent
Product revenue:
Switching ......................... $ 14,741 $ 14,001 $ 14,711 $ 740 5.3 % $ (710) (4.8)%
Percentage of product revenue .... 39.1% 38.7% 38.7%
NGN Routing ..................... 7,704 7,609 8,168 95 1.2 % (559) (6.8)%
Percentage of product revenue .... 20.4% 21.0% 21.5%
Collaboration ..................... 4,000 3,815 4,057 185 4.8 % (242) (6.0)%
Percentage of product revenue .... 10.6% 10.5% 10.7%
Service Provider Video ............ 3,555 3,969 4,855 (414) (10.4)% (886) (18.2)%
Percentage of product revenue .... 9.4% 11.0% 12.8%
Data Center ....................... 3,220 2,640 2,074 580 22.0 % 566 27.3 %
Percentage of product revenue .... 8.5% 7.3% 5.5%
Wireless .......................... 2,542 2,293 2,257 249 10.9 % 36 1.6 %
Percentage of product revenue .... 6.7% 6.3% 5.9%
Security ........................... 1,747 1,566 1,348 181 11.6 % 218 16.2 %
Percentage of product revenue .... 4.6% 4.3% 3.5%
Other ............................. 241 279 559 (38) (13.6)% (280) (50.1)%
Percentage of product revenue .... 0.7% 0.9% 1.4%
Total ........................... $ 37,750 $ 36,172 $ 38,029 $ 1,578 4.4 % $ (1,857) (4.9)%
Certain reclassifications have been made to the prior period amounts to conform to the current period’s presentation.
Switching
Fiscal 2015 Compared with Fiscal 2014
The increase in revenue in our Switching product category of 5%, or $740 million, was driven by a 9%, or $826 million, increase
in revenue from our LAN fixed-configuration switches and, to a lesser extent, a 24%, or $102 million, increase in sales of storage
products. Revenue from LAN fixed-configuration switches increased due to higher sales of most of our Cisco Nexus Series
Switches and Cisco Catalyst Series Switches within this category. We experienced a decrease in revenue from our modular
switches of 4%, or $188 million, driven by lower sales of Cisco Catalyst 6500-E Series Switches and Cisco Nexus 7000 Series
Switches.
Fiscal 2014 Compared with Fiscal 2013
Revenue in our Switching product category decreased by 5%, or $710 million driven by a 12%, or $656 million, decrease in
revenue from our modular switches. Revenue from our modular switches decreased due to lower sales of Cisco Catalyst
6000 Series Switches. We also experienced a 3% decrease in sales of storage products within this category. Revenue from our
LAN fixed-configuration switches was relatively flat year over year, as lower sales of most of our fixed-configuration Cisco
Catalyst Series Switches and fixed-configuration Cisco Nexus Series Switches were offset by the continued adoption of Cisco
Catalyst 3850 Series Switches and Cisco Nexus 6000 Series Switches.
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