Cisco's fiscal first quarter, the results of which were announced this week, blew past Wall Street expectations in both revenue and earnings. Chambers said the upbeat results were proof positive that Cisco's restructuring, implemented two quarters ago after consecutive quarters of lackluster results and costing more than 12,000 Cisco jobs, is taking hold.
"Our strategy is working," Chambers said during the company's first quarter conference call. "We're capitalizing on major strategy shifts in IT. We've organized our business around how (customers) want to buy key technology. We're aggressive, focused and simplified."
A highlight in the quarter was Cisco's deal with Korean telecom carrier KT to fund a KT subsidiary offering managed services for smart buildings and smart city projects in 14 countries in the Asia-Pacific region, including Japan, China and Southeast Asia. The subsidiary will look to upgrade traffic control systems, transportation, electricity, water and other utility infrastructures; develop building intelligence and automation systems; and offer energy management, digital signage, public safety systems, and car park management for multitenant residences.
"These are examples of how KT is aligning with us for the data center, through collaboration, through video, smart joint communities across 14 countries," Chambers said. "We are their primary partner for IT and it is IT becoming (business transformation).
"The restructuring has allowed us to organize the way customers buy," Chambers said, summing up progress in the quarter.
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