platform for modern applications
which helps remediate application
performance issues with business
context andinsights.
And, for customers operating
mass-scale networks, we introduced
an enhanced routed optical networking
platform which can help drive savings
of up to 45% in power and up to 70%
in real estate required for equipment.
Our Silicon One based Cisco
8000 routers, the fastest growing
product family in Cisco’s history,
combined with optics from Acacia,
create a durable foundation for the
development of the Internet for the
Future, 400G andbeyond.
These innovations, together with
many others across our portfolio,
are intended to drive simplicity and
provide the best unified experience
for our customers. Offering our
customers choice is an important
factor in that experience, and we
continue to find ways to do so
through flexible consumption models,
disaggregating and virtualizing
certain technologies, and delivering
as much as we can as-a-Service.
Cisco+ Secure Connect, which allows
customers to quickly deploy Secure
Access Service Edge (SASE) and
eases day-to-day operations through
a cloud-managed platform, is a great
example and the latest of several
as-a-service offers, and we have
more in the pipeline.
Successfully transforming
ourbusiness
We continue to make solid progress
in our business transformation which
we believe is strengthening our
position in the market by helping us
to deliver innovation and choice for
our customers in new ways, all while
giving us greater visibility, resiliency,
and predictability.
In fiscal 2022, we generated over
$15 billion of software revenue, 81%
of which was subscription-based.
Total subscription revenue, including
services sold as subscriptions, was
over $22 billion, and represented 43%
of Cisco’s total revenue.
Our subscription revenue drives ARR
and RPO which are the best indicators
of our progress in our business
transformation. The combination of
our ARR, RPO and our record backlog
gives us excellent visibility and a
high degree of confidence in our
futurerevenues.
Living our purpose
Since the beginning, Cisco has
focused on innovation, integrity and
doing what’s right. By operating
a successful business, we are
empowered to step up to the
many societal and environmental
challenges we see around the world.
We redefined our purpose—to power
an inclusive future for all—in 2020,
and we couldn’t have imagined
how relevant it would be in today’s
world. To help fulfill our purpose,
we leverage our technology and
catalyze our networks, partners, and
people to make a positive impact in
communities worldwide and on the
planet. Our purpose guides us to
focus our efforts where we know we
can make most impact.
This past year, we committed to
reaching net-zero greenhouse gas
emissions across our value chain
by 2040. We recently refined our
goals and near-term targets and
were one of the first technology and
hardware equipment companies to
have its net-zero goals validated
under the Science Based Targets
initiative (SBTi) Net-Zero Standard, the
world's first framework for corporate
net-zero target setting in line with
climate science. The use of our sold
products is the greatest contributor
to our overall carbon footprint, so
improving the energy efficiency of our
hardware and solutions—by integrating
Silicon One across our portfolio, for
example—is a high priority, as it also
helps our customers meet their own
emissions reduction goals.
We also remain committed to doing
all we can to provide inclusive access
to training and education in the key
digital skills that are in such high
demand across all industries. In the
25 years since we launched the Cisco
Networking Academy in 1997, we
have reached more than 17 million
students, 95% of whom say the
program helped them obtain a job or
educational opportunity. This past year,
to accommodate even more students,
we created SkillsForAll.com, providing
free online technology courses backed
by Cisco’s expertise and connected to
real career paths in the digital economy.
I'm incredibly proud of how our
teams around the world have
rallied around our purpose. During
this past year, more than 80% of
employees have given back to their
communities. I have no doubt that our
purpose-driven culture is a primary
reason why Cisco has been named
the number one Great Place to Work in
14 countries around the world.
While we continue to make good
progress on our priorities and
work in service of our purpose, we
recognize there is always much more
to be done to ensure that people and
ecosystems can thrive together on a
liveableplanet.
Condence in the future
As we enter fiscal 2023, we see
tremendous opportunity ahead. While
we expect supply chain challenges
to persist, we are encouraged by the
early signs of supply easing that we
saw at the end of fiscal 2022, and we
expect to see gradual improvements
throughout the year that will enable
us to get our products into our
customers’ handsfaster.
We will continue to focus on
simplification as we develop our
platform strategy and offerings, while
helping to drive sustainability in our
products. There is a greater sense
of urgency from our customers and
partners to leverage leading-edge
technologies to deliver on their
strategic objectives and our innovation
is helping them navigate an increasing
amount of complexity.
While no company is immune to
macro trends, we are fortunate that
there are currently more technology
transitions occurring concurrently
than I’ve seen in 20 years. Given
the strength of our portfolio, our
continued investment in accelerated
innovation, and the commitment of
our teams, we believe the multi-year
megatrends of hybrid cloud, hybrid
work, security, IoT, 400G and beyond,
5G and Wi-Fi 6, as well as the move
towards application observability, will
provide tailwinds to our long-term
growth. We also believe that the focus
on sustainability and the climate crisis
will continue to be positive for our
business. We feel that Cisco is well
positioned for whatever the future
may hold.
Thank you for your continued support.
Chuck Robbins
Chair and Chief Executive Officer
October 13, 2022
3Cisco 2022 Annual Report