What’s up with… Cisco, RAN market, ServiceNow

  • Cisco’s sales leap in Q1
  • Nokia has the highest growth rate in the RAN sector, notes Dell’Oro
  • ServiceNow teams with BT, Juniper and more

In today’s industry news roundup: Cisco reports a stellar fiscal first quarter; Nokia gains RAN market share in Q1, says Dell'Oro; ServiceNow has a host of new partnerships and plans; and more!

Cisco Systems has reported a 14% year-on-year increase in revenues to US$14.6bn as well as a 9% increase in operating income to $3.9bn for its fiscal third quarter that ended 29 April, with the giant networking vendor expecting to report fiscal fourth-quarter year-on-year sales increases of between 14% and 16%. “We once again delivered a strong quarter in a dynamic environment,” noted Cisco CEO Chuck Robbins. “In Q3, we delivered record revenue and double-digit growth in both software and subscription revenue. As key technologies like cloud, AI and security continue to scale, Cisco’s long-established leadership in networking, and the breadth of our portfolio position us well for the future.” Investment analyst at Raymond James, Simon Leopold, who has been tracking Cisco for years, is positive about the vendor’s trajectory, stating in a note to clients that the company’s bookings are up by 21% compared with a year ago and are set to increase again during the current quarter. In addition, he noted that Cisco’s share buy-backs worth $1.3bn were higher than expected, which “demonstrates [the] management’s confidence” in the company’s ongoing operations. Read more

Nokia has continued to gain market share in the global radio access network (RAN) technology sector during the first three months of 2023, according to the latest market analysis from Dell’Oro Group. The Finnish vendor “recorded the highest growth rate among the top-five suppliers, while Ericsson and Samsung both lost some ground in the first quarter,” noted Dell’Oro Group, which identifies the Chinese vendors Huawei and ZTE as the other companies making up the global top-five RAN suppliers. “Despite lacklustre topline growth, the quarter was actually very interesting both from a regional and supplier perspective,” noted Stefan Pongratz, vice president at Dell’Oro Group. “Not surprisingly, growth is now transitioning away from the advanced markets towards the slower-to-adopt 5G markets. But the speed of this shift was perhaps a bit surprising as the pendulum swung drastically towards the positive in India while the North American RAN market performed much worse than expected,” added the analyst. The company didn’t put a value on the RAN market for the first quarter, but with the market being worth around $40bn in 2022 and the sector exhibiting little “top-line” growth, it appears the market will likely have been worth around $10bn for the January to March period. Read more.  

Digital workflow platform specialist ServiceNow has been busy building its communications networking relationships this week. In collaboration with UK national telco BT it is to develop and launch a “turnkey, contact-centre-as-a-service (CCaaS) package integrating digital workflows, global communications and a cloud-hosted contact centre platform” to meet demand from enterprise users that want to “simplify and accelerate digitalisation of their contact centres and workflows,” according to ServiceNow. It has struck a partnership with Juniper Networks to “deliver end-to-end automation for managed service providers and enterprises.” The partners will combine Juniper’s Mist Cloud and ServiceNow’s Telecom Service Management and Order Management for Telecom in an effort to help joint customers “eliminate multi-layer, multivendor solutions, thereby boosting network deployment and operational efficiencies while reducing costs.” And with chip giant Nvidia it is to “develop powerful, enterprise‑grade generative AI capabilities that can transform business processes with faster, more intelligent workflow automation.” 

ServiceNow also announced it is to commit $1bn in investment capital to ServiceNow Ventures, the company’s global strategic investment arm, by 2026. “The company’s increased multi‑year investment and strategy expansion is reflective of its ongoing commitment to grow and scale the next generation of enterprise technology companies,” it noted in this announcement

- The staff, TelecomTV