Cisco CEO Sees Supply Chain Easing Mid-2022

The transcript covers a company's transformation towards recurring revenue and software subscriptions, resulting in significant sales growth. It outlines financial guidance, investment in new technologies, and challenges in the supply chain. The discussion also highlights customer demand for technology, pricing strategies, and the importance of addressing the digital divide through infrastructure improvements.

What has been the primary focus of the company's business transformation?

• Expanding into new geographical markets

• Shifting to recurring revenue and software subscriptions

• Increasing physical product sales

• Reducing operational costs

What is the expected revenue and EPS growth over the next four years?

• 3 to 5%

• 10 to 12%

• 5 to 7%

• 7 to 9%

What are the two main factors currently influencing the company's EPS?

• Increased marketing expenses and new product launches

• Investments in new technologies and increased component costs

• Reduction in workforce and lower R&D spending

• Expansion into new markets and higher labor costs

What are some of the supply chain challenges the company is facing?

• Semiconductor shortages and transport constraints

• Limited access to raw materials and outdated technology

• Lack of skilled labor and high transportation costs

• Increased tariffs and regulatory hurdles

When does the company expect the supply chain issues to start improving?

• In the middle of next year

• By the end of this year

• In the first quarter of next year

• By the end of next year

How is the company addressing the digital divide?

• By offering free internet services

• By investing in broadband access for all households

• By reducing the cost of software subscriptions

• By providing free computers to students

What is the company's approach to handling customer demand amidst cost pressures?

• Modernizing infrastructure and focusing on hybrid cloud solutions

• Increasing prices significantly

• Reducing product offerings

• Outsourcing production to cheaper locations