Cisco Systems is no longer the world’s most valuable company. Yet, as the leading manufacturers in the computer networking industry, the Cisco net worth is still incredibly high.
Cisco Systems was once the biggest company in the world, with a market cap of $579.1 billion. The likes of Apple, Google, Microsoft and Amazon now lead the way. Yet, many Silicon Valley start-ups have Cisco Systems to thank for changing the tech world and making many of their businesses possible.
As one of the first companies to enter the Ethernet router market, Cisco Systems has dominated since the very beginning.
As a result, they are now market leaders in computer networking technology (such as routers and switches), wireless controllers, computer security and VoIP services. You might not realise it, but you interact with Cisco Systems products multiple times a day.
Cisco Systems’ three biggest earners
While not quite as well recognised as the likes of Intel or IBM, Cisco is huge tech company that has generated more than $45b in revenue consistently over the last five years.
They don’t have a product that everyone knows about, such as the iPhone or the Xbox. However, the necessity of the products that Cisco does sell makes it one of the most successful companies of all time.
These three products have helped to maintain Cisco System’s place at the top:
A network switch connects all of the devices connected to a network together. The device acts as a controller, allowing these other devices to work together. Network switches are Cisco System’s best-selling product, bringing in $8.3b in 2015.
While best known for their routers, they are only Cisco Systems’ second best-selling item. Similar to a switch, a router allows devices to connect to a network. In total, router sales made up $7.5b of Cisco’s revenue.
Aside from building network products, Cisco Systems also provides installation and advisory services to their customers. Expenses excluded, services are Cisco’s biggest earner, making $11.5b. However, after travel and staff costs are paid for, this amounts to around $7.5b.
What is the Cisco System’s net worth?
Cisco isn’t quite the $500b company that it once was. It peaked at $79.38 per share in March 2000 and fell to $13.63 12 months later.
Cisco never recovered from that drop. However, the company is still given an incredibly high value by investors, with a market cap of $160.2b.