Cisco Takes Another Video Hit

Despite some restructuring and re-tool,Cisco Service Provider Video business remains in landfills.In recent earnings results,Cisco Systems Inc.Reported late Wednesday that its service provider segment revenue by 11% on a year over year basis in its fiscal fourth quarter ending July 26 service Provider video contributed greatly to drop this fall,with video-orders from 13% a year ago,and video sales fall 10% to $ 1.06 billion.

Similarly, 2014 Cisco reported a 15% decline in revenues video service provider.Although video software sales increased for the year broke the video infrastructure revenue, pulling the entire segment.Service outcomes bagging Cisco are in stark contrast to the steady increases in Arris Group Inc.its biggest rival in this segment.He wrote in its latest earnings report two weeks Arris strong sales and revenue increases,at least partially offset by higher deliveries of cable and IPTV set-tops, gateways, home video and other video equipment does.

Cisco executives blame falls past provider of business services for the upcoming mergers such as Comcast cable customers largest Corp.(Nasdaq: CMCSA, CMCSK) and Time Warner Cable Inc. Cisco Chairman and CEO John Chambers said the supplier has both service sector consolidation activity in the last 12 months taken together as in the previous four years.

Chambers is that service providers struggling with their business models now as they transition to a new competitive landscape.As a result,he said,that put pressure on the vendors.With Comcast/Time Warner Cable and AT & T Inc.DirecTV Group Inc. is not expected to close deals at least the end of year,Cisco executives expect continued weakness for at least another six months.Talking about the temporary slowdown impact investments that such associations may Chambers said he does not expect an upturn in the service providers see revenue for at least two quarters. Is likely to be heavy for a while,he said.

President and CEO Bob Stanzione Arris sounded a similar theme in the earnings call with analysts his company two weeks ago.To create Stanzione the upcoming Fusion riots in the business in this fall and winter.How Stanzione,Chambers predicted that the level of investment in the service providers increase as soon as the deals were completed.In the long run,he said,should vendor consolidation create new opportunities for Cisco.

Even in the short term,however,Cisco officials are clearly not the performance of video segments satisfied with the service provider.In his opening speech said Chambers has already made changes in the leadership of the area the company.Although he did not elaborate, Cisco recently courted Veteran Executive Yvette Kanouff cable Cablevision Systems Corporation,to direct their video software provider of services and solutions group.

I think we have to do better with service providers, Chambers said.But, he said,this is a couple-of-term rooms phenomenon.Longer,Cisco tried your business service providers move from its traditional dependence on routers and boxes with a focus on end-architectures and solutions at the end of software as it has done in the corporate sector.Customers love the service provider approach, the chambers and notes that the only complaint I've heard is why Cisco has not to take this step forward.We will make a good transition to the next one or two years.