Cisco 2015 Annual Report Download - page 58

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Service Revenue by Segment
The following table presents the breakdown of service revenue by segment (in millions, except percentages):
Years Ended 2015 vs. 2014 2014 vs. 2013
Years Ended
July 25,
2015
July 26,
2014
July 27,
2013
Variance
in Dollars
Variance
in Percent
Variance
in Dollars
Variance
in Percent
Service revenue:
Americas ............................ $ 7,394 $ 7,150 $ 6,986 $ 244 3.4% $ 164 2.3%
Percentage of service revenue ....... 64.8% 65.2% 66.1%
EMEA ............................... 2,466 2,351 2,161 115 4.9% 190 8.8%
Percentage of service revenue ....... 21.6% 21.4% 20.4%
APJC ................................ 1,551 1,469 1,431 82 5.6% 38 2.7%
Percentage of service revenue ....... 13.6% 13.4% 13.5%
Total .............................. $ 11,411 $ 10,970 $ 10,578 $ 441 4.0% $ 392 3.7%
Fiscal 2015 Compared with Fiscal 2014
Service revenue increased across all of our geographic segments. Worldwide technical support services revenue increased by 3%
and worldwide advanced services revenue increased by 6%, driven by growth in subscription revenues. Technical support
services revenue experienced relatively balanced growth across all geographic segments. Renewals and technical support service
contract initiations associated with product sales provided an installed base of equipment being serviced which, in concert with
new service offerings, were the primary factors driving the revenue increases. Advanced services revenue, which relates to
consulting support services for specific customer network needs, grew across all geographic segments.
Fiscal 2014 Compared with Fiscal 2013
Service revenue continued to experience slower growth than in prior fiscal years, with varying levels of growth across our
geographic segments. Worldwide technical support services revenue increased by 4% while worldwide advanced services
revenue experienced 3% growth. Technical support services revenue experienced growth across all geographic segments.
Renewals and technical support service contract initiations associated with product sales provided an installed base of equipment
being serviced which, in concert with new service offerings, were the primary factors driving the revenue increases. Advanced
services revenue, slightly declined in the Americas segment but had solid growth in the EMEA and APJC segments due to growth
in subscription revenues.
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