Subscribe to Bloggers speak out on BradReese.Com

Why are Cisco's TelePresence sales in decline?

It appears Cisco has missed the market transition in videoconferencing. How so? Well, it will be reporting FY12 TelePresence sales down in the teens.

Thu, 8/2/12 - 5:32am    View comments

Cisco has scheduled its Q4 and FY12 earnings announcement for Wednesday, August 15 at 4:30PM Eastern Time. Wall Street will be very keen to learn the fate of Cisco's TelePresence sales.

Why?

Because Cisco CEO John Chambers specifically stated during Cisco's Q3'FY12 earnings conference call:

"Our Q3 performance in collaboration being flat is not where we expect it to be. And as you would expect, we are putting an aggressive action plan in place with specific focus on our sales execution. Part of this challenge is market-driven and part of it is our need to execute more effectively."

Chambers added:

"More specifically on collaboration. Increased sales of IP phones within our Unified Communication products were offset by sales decline in other products in the portfolio. Our TelePresence business, for example, has historically had tremendous success in the public sector and enterprise markets. As we saw continuous pressure in public sector and enterprise spending, we also saw the impact on our TelePresence results."

For FY12, Cisco will be reporting TelePresence sales down in the teens!

So why are Cisco's TelePresence sales in decline?

Well yesterday, I had an intriguing phone conversation with the Strategic Account Manager of a distributor selling videoconferencing hardware that competes with both Cisco and Polycom.

And here's what I learned:

Cisco and Polycom are no longer the competition in videoconferencing, the competition are the innovative startups:

Polycom vs. Cisco Stock Price Chart

It appears Cisco has missed the market transition in videoconferencing.

Related stories:

Cisco's 2Q12 videoconferencing revenue dropped -23.7% year-over-year

Vidyo's claims of free, unlimited video calls could exacerbate industry issues

Videoconferencing and Telepresence Market Growth Decelerates

5 Reasons Cisco And Polycom Are In Trouble In Telepresence
 

What's your take?

Subscribe to Bloggers speak out on BradReese.Com

1. Wall Street analyst warns Cisco's stock price may fall to $11 per share
2. Why is Cisco speaking like a tobacco company?
3. Is alleged inappropriate nepotism costing Cisco millions?
4. Unconfirmed rumor Cisco offered $2.5 billion to buy Palo Alto Networks and was turned down
5. Cisco, London taxi cabs and Reese's Peanut Butter Cups
6. Unconfirmed rumor Cisco is laying off 1,600 WAAS engineers and sales team members
7. View the insiders cashing in IPO shares at Palo Alto Networks
8. IronPort Systems financial statements prior to acquisition by Cisco
9. Flip video financial statements prior to acquisition by Cisco
10. Cisco has acquired Virtuata, a security startup cofounded by Meru Networks cofounder Joe Epstein
11. Cisco gold partner with history of SMARTnet fraud awarded new $578 million Cisco SMARTnet contract by U.S. Army
12. Cisco's customers are being sued for using Cisco's products
13. Is Cisco getting ready to close Linksys and announce more layoffs?
14. Cisco CEO John Chambers is selling 2.15 million shares of Cisco stock
15. Brilliant appointment of Padmasree Warrior as Cisco's new chief strategy officer
16. Rumor that Cisco SVP and top collaboration executive, Barry O'Sullivan, will be leaving soon
17. Cloud networking comparison: Arista Networks' Douglas Gourlay vs. Cisco's Padmasree Warrior
18. The technical details on Alcatel-Lucent's $40 million win over Cisco - Jean-Luc Ronarch
19. Pronouncements of John Chambers before discontinuance of the Cisco Cius tablet
20. View the archive of Bloggers speak out on BradReese.Com