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Data centre and switching play key roles in Cisco's Q2

Data centre and enterprise sales helped drive Cisco's better than expected Q2, but a major product transition is crimping switch sales. Data centre was a highlight in the quarter, and accounted for 59% of Cisco's product revenue. Enterprise order growth was in the high 20% range, while orders overall were up 8%. Collaboration is on a $4 billion run rate, CEO John Chambers said in the quarterly conference call with analysts.

But switching was a lowlight in the quarter. Revenue was down 7% and Chambers attributed it to transitioning the US$10b billion Catalyst base to new models and product lines.

Source: Network World

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