Cisco Systems, Inc. (NASDAQ:CSCO) seems to be leveraging the technology of Meraki in order to expand its wireless business. Cisco had acquired Meraki in November 2012 in a deal worth $1.2 billion. The technology of latter helps Cisco in facilitating control over the Wi-Fi networks by way of cloud. In the recently bygone quarter, the revenue growth of company’s wireless business was 18%, which it attributed to Meraki. During the earning call of the Q22015, the company’s management also said that the cloud networking business of Cisco in Meraki increased at the rate of 100% on the YoY basis. The annual revenue run rate was revealed to be $400 million.
Let this analyst breakdown the obvious technical-indicators for CSCO.
Cisco catering to increasing demand for Wi-Fi
The wireless business of this company caters to the increasing demand of Wi-Fi networks. There has also been an increase in the growth and demand of wireless devices like tablets, PCs and smartphones. It is for this reason that the pressure on wireless industry for increasing and expanding the growth of Wi-Fi networks seems to be increasing. The increase of pressure is also reflecting on the wireless division financials of Cisco.
Over the past few quarters, it has been observed that the revenue growth of company on YoY basis has been increasing continuously.
Top market players in enterprise wireless LAN market competing aggressively
Aruba Networks, Inc. (NASDAQ:ARUN), one of the key players of market is expanding and growing its wireless venture at a much faster pace. With the market becoming competitive every day, the top most players, viz. Cisco, Aruba, Ruckus Wireless Inc (NYSE:RKUS) and Hewlett-Packard Company (NYSE:HPQ) are competing against each other. HP acquired Aruba recently, in a deal worth $3 billion and with this; it has become the key player of enterprise wireless LAN market. This, in turn, has also increased HP’s competition with Cisco.