“While our software revenue was down slightly, once supply constraints improve and we begin to increase product shipments, we expect to see an improvement in software, subscription and services that are attached to hardware products in our backlog.”

In context

“platforms in Cisco's history. Together with optics from Acacia, we have a strong foundation for 400-gig and beyond to rearchitect the Internet with routed optical networking. In addition, we recently booked and shipped our first 800-gig systems to one of our web scale customers. On the IoT front, we also now have more than 200 million connected things on our cloud platform with growth driven by connected car. We finished fiscal 2022 with product orders in excess of $1 billion and growing double digits. We continue to make progress on our transformation to more software and subscription-based recurring revenue. ARR of approximately $23 billion was up 8% with product ARR increasing by 13%. We had strong subscription revenue this quarter, driven by our growing portfolio of recurring offers. While our software revenue was down slightly, once supply constraints improve and we begin to increase product shipments, we expect to see an improvement in software, subscription and services that are attached to hardware products in our backlog. The investments we've made in innovation are paying off as our competitive position is very strong. In Q4, we introduced several new cloud delivered innovations across our portfolio to help organizations drive productivity and resiliency. We launched Nexus Cloud, a platform to help our customers deploy, manage and operate their data center networks from the cloud. In addition, we introduced Calisti and Panoptica, two new cloud native API-first tools for faster and better application development. We also announced AppDynamics Cloud, a next-generation version of our observability platform for cloud native applications. In addition, we shared our strategy to help our customers connect their entire security architecture with our new platform, Cisco Security Cloud, which will be a game changer”