But taking on the big tech firms will be hard
is part of this story, too: the more data are collected in the cloud, the more they can be mined and turned into algorithms, which then become the engines of new services, such as detecting hacking attacks.has always been a lumpy business, with customers paying large sums of money for new wares once every few years. At the same time hardware and even some software have become low-margin businesses. Subscriptions to services, by contrast, bring more predictable revenues and higher profits.
’s own machines, public clouds and edge ones. It is supposed to allow customers to stay independent of any one system.offers something similar called GreenLake. Cisco boasts several more specialised platforms, including one to optimise a firm’s many applications.’s platform, Dell appears to be moving against the stream. But the spin-off mainly serves to get rid of a conglomerate discount.
What are the results so far of the tech incumbents’ transformation dreams? Cisco was the first to react, promising in 2017 that more than half of its revenue would come from software and subscriptions within three years.announced an even more ambitious goal in 2019, saying that it will offer its entire portfolio of products as a service by 2022., mainly thanks to its mainframe business, has always had a healthy stream of subscription revenues, but wants to grow these further.
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