Transitioning to a subscription-based software sales model is paying off for Cisco. The company reported that total revenue for its most recent quarter increased 6 percent to $12.84 billion. Revenue and profits beat industry expectations, and the company partially credited software subscriptions for the success. Subscriptions now represent 56 percent of its software revenues. “We’re seeing the returns on the investments we are making in innovation and driving the shift to more software and subscriptions,” said Chief Financial Officer Kelly Kramer.
The company's security revenue climbed 12 percent to $627 million, and the company recently announced the purchase of Duo Security.
Infrastructure revenue, which includes Cisco's flagship networking gear, climbed 7 percent.