Cisco has reported a slight dip in its collaboration sales, despite seeing recurring revenue for Webex grow.
The networking giant reported Q4 sales of $13.1bn, up eight percent year on year.
But its applications arm, which houses Webex and other collaboration products, saw sales drop one percent to $1.3bn.
This is despite recurring subscription revenue from Webex growing year on year.
“There’s a couple of things to keep in mind in both applications and security,” Chuck Robbins, Cisco CEO, said.
“In collaboration within the applications, the recurring subscriptions within Webex suite revenue was up nine percent in Q4, 16 percent for the year. We had solid growth in IoT… Cloud Contact Center, and Cloud Calling.
“What’s also in there, if you will recall, is there are phones and handsets, and there’s some on-prem software that’s associated with collaboration. Some of those were impacted by the supply chain but the future growth areas actually for us looked really good”
Cisco said that it has continued along its transformation journey during the quarter and full year, with software revenue sales rising six percent in the quarter to $4bn. The vendor also said that order rates outstripped revenue growth rates. Product order growth hit 31 percent, the highest Cisco has seen in 10 years.
Cisco recently revamped the Webex offering to implement technology it acquired through Socio Labs.
It also revealed its new asynchronous video offering, Vidcast.
