Cisco Faces Resistance to Software Bundles from Cost-Conscious Companies
By Aaron Holmes
For years, Cisco has relied on a widely used tactic to drive sales: The enterprise tech giant pitches customers on large bundles of products that include everything from its core networking products to more peripheral offerings from its sprawling portfolio, such as security software and its Webex videoconferencing app. But now customers are starting to resist buying the company’s bundles, according to current and former Cisco employees.
Corporate IT departments, under pressure to save money, are picking through their Cisco enterprise agreements with a fine-toothed comb to cut out products they don’t use as much, the people said. Industry executives say a similar trend is happening across the enterprise software industry, which spells problems for big firms such as Microsoft and Oracle that also encourage customers to buy a wide array of products in suites.