Cisco Systems (NASDAQ:CSCO) has recently unveiled strategic collaborations with Deutsche Telekom and Evidento, aimed at reinforcing sovereign controls for European customers. The primary objective of this partnership is to enhance data security for European clients utilizing Webex, Cisco’s collaboration platform. Key highlights of this initiative include:
- Data Encryption Key Management: Encryption keys for Webex Meetings, Messaging, and Calling User-Generated Information will be managed and hosted within Europe. This ensures that sensitive data remains under European jurisdiction, adding an extra layer of security and compliance. This move is especially significant for businesses, educational institutions, healthcare providers, and government entities.
- Data Security: These strengthened data security measures empower users to leverage the latest cloud and collaboration technologies. Cisco’s zero-trust end-to-end encryption guarantees the security of data both during transit and while stored, providing peace of mind for users.
Expanding Security Portfolio to Foster Growth
Cisco is capitalizing on the surging demand for its security, artificial intelligence, and cloud products. The company’s security portfolio has received a boost with the introduction of new data loss prevention, firewall, and zero-trust capabilities, demonstrating its commitment to staying at the forefront of cybersecurity.
Cisco’s shares have returned 13.1% year-to-date, showcasing resilience in the market. While it has outperformed the Zacks Computer – Networking industry’s growth of 11.2%, it falls slightly behind the Zacks Computer & Technology sector’s return of 38.9%.
The company’s investments in the security business, with a focus on cloud-based and AI-driven offerings, are poised to drive growth. Cisco’s dedication to expanding growth opportunities in low-power-consuming technologies, including IoT, Silicon One, and Power over Ethernet, underscores its forward-thinking approach.
In a strategic move in September, Cisco announced the acquisition of Splunk (SPLK) for $28 billion. This acquisition is set to enhance Cisco’s capabilities in AI, security, and observability, reinforcing digital resilience and streamlined data management. It will also bolster Cisco’s presence in the cybersecurity domain and accelerate its mission of securely connecting everything.
Furthermore, Cisco introduced Secure Application on the Full-Stack Observability Platform, which enhances security for cloud-native and hybrid applications. This proactive approach addresses vulnerabilities and reduces security risks.
In its outlook for the first quarter of fiscal 2024, Cisco expects revenues to range between $14.5 billion and $14.7 billion, with the Zacks Consensus Estimate for the quarter at $14.61 billion, indicating a year-over-year growth of 7.18%. The Zacks Consensus Estimate for fiscal 2024 revenues stands at $57.74 billion, reflecting a 1.3% year-over-year growth.
Cisco’s dedication to fortifying data security and expanding its technology portfolio positions it well for the evolving digital landscape, making it a compelling player in the technology and cybersecurity sectors.
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