Clearly Cisco is committed to developing innovative cloud collaboration solutions. This is a hot space. Cloud collaboration delivers many benefits in the way IT organizations deliver services to their users. It provides new opportunities to change the way work gets done, and speeds-up innovation. We are already a leader, and want to extend our leadership even further. Expect to hear some exciting announcements at Enterprise Connect in Orlando next week.
Tens of millions of users rely on Cisco Unified Communications Manager, Cisco Unified Contact Center (Express/Enterprise/Packaged), Cisco Jabber, and Cisco Meeting Server to get their jobs done. We are not going to let them down.
I believe there are a few key reasons why on-premises solutions will continue to be important:
1) Regulatory policy and compliance: While our cloud solutions are very secure, many governments and industries are not allowed to adopt them because of legal and regulatory issues. There are a lot of “air gapped” networks that are not allowed to have internet connectivity and they want to use Cisco on-premises unified communication solutions!
2) Geographic reach: There are still many areas of the world where cloud solutions are not fully available. There are countries, areas of poor Internet connectivity, and even ships (yes, we have Unified CM running in ships).
3) IT integrations: Our systems have many APIs that customers and 3rd party technology partners have taken advantage of over several years. It’s not uncommon to see a large enterprise with multiple contact centers, recording systems, call accounting software packages, and a plethora of custom development applications connected to the same Unified CM cluster. Cloud solutions are feature rich and offer APIs to connect to other web services and applications. One of the main benefits of the cloud is simplicity. Customers will have to make a choice between their existing sophisticated IT environment or a more streamlined one.
4) Specialized applications: Looking for low-latency, super high-resolution and high-frame rate video? The answer is probably “no” for most customers, but media companies, for example, think otherwise. We can’t beat the speed of light, and the round trip for packets to go to the basement is lower than going to the cloud.
So, to me, the answer is very simple: yes – we will continue to innovate in on-premises. We will deliver THE best on- premises collaboration solutions in the market, period.
March 13, 2019