Cisco 2014 Annual Report Download - page 57

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Data Center
Fiscal 2014 Compared with Fiscal 2013
We continue to experience solid growth in our Data Center product category, which grew by 27%, or $566 million, with sales
growth of our Cisco Unified Computing System products across all geographic segments and customer markets. The increase
was due in large part to the continued momentum we are experiencing in both data center and cloud environments, as current
customers increase their data center build-outs, and as new customers deploy these offerings.
To the extent our data center business grows and further penetrates the market, we expect that, in comparison to what we
experienced during the initial rapid growth of this business, the growth rates for our data center product sales will experience
more normal seasonality consistent with the overall server market.
Fiscal 2013 Compared with Fiscal 2012
We experienced strong growth in our Data Center product category, which grew by 60%, or $776 million, with strong sales
growth of our Cisco Unified Computing System products across all geographic segments and customer markets. The increase
was due in large part to the continued momentum we are experiencing with our products for both data center and cloud
environments, as current customers increase their data center build-outs and as new customers deploy these offerings.
Wireless
Fiscal 2014 Compared with Fiscal 2013
We continue to increase the proportion of recurring revenue in our Wireless product category. Revenue in our Wireless
product category increased by 2%, or $37 million, due to an increase in sales of Meraki products, which we acquired in the
second quarter of fiscal 2013, partially offset by lower sales of other wireless products.
Fiscal 2013 Compared with Fiscal 2012
Sales of Wireless products increased by 31%, or $531 million. This increase reflects the continued customer adoption of and
migration to the unified access architecture of the Cisco Unified Wireless Network, and also reflects increased sales of new
products in this category as well as sales of products related to our acquisition of Meraki.
Security
Fiscal 2014 Compared with Fiscal 2013
We continue to increase the proportion of recurring revenue in our Security product category. Revenue in our Security product
category was up 16%, or $218 million, driven primarily by sales of Sourcefire products, which company we acquired in the
first quarter of fiscal 2014 and, to a lesser degree, by both higher sales of our high-end firewall products within our network
security product portfolio and slightly higher sales of our content security products.
Fiscal 2013 Compared with Fiscal 2012
Sales of Security products were flat as higher sales in high-end firewall products within our network security product portfolio
were offset by lower sales of our content security products.
Other Products
We experienced a year-over-year decrease in revenue in our Other Products category for both fiscal 2014 and 2013, due in
large part to the sale of our Linksys product line in the third quarter of fiscal 2013.
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