Cisco Faces Resistance To Software Bundles from Cost-Conscious Companies

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, The Information reported Wednesday, citing current and former Cisco employees. From the report: 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. Cisco's customers are balking at offers to renew contracts that include software licenses for tools the companies don't feel they use enough to justify, employees say. That has contributed to a slowing in sales of some of its subscription-based software, including Webex, AppDynamics and certain security products, employees say.

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