Cisco's revenue in the Russian market is reduced due to sanctions

    At the American company Cisco, revenue in the Russian market decreased by 14%. According to company reporting, revenue from August 2014 to January 2015 decreased by 20%. Cisco's annual revenue fell 24% by the end of last year.

    The main reason for the drop in sales is Russia's retaliatory sanctions. However, supply problems also played a role.

    Because of this, Asian manufacturers, ZTE and Huawei, have strengthened their influence in the market .

    Valery Sokolyuk, the head of the Asteros Infrastructure and Telecommunication Solutions Directorate, argues that the import substitution process in the IT sector is also a constraining factor for Cisco.

    In 2014, corporate shipments of routers to the Russian market decreased by 22% compared to the previous year, a representative of a Russian telecommunications company told Vedomosti. The share of Cisco in the Russian market of routers in 2014 decreased from 75% to 64% compared to 2013. But in the segment of the equipment of the network core level, its share, on the contrary, increased from 91.2 to 94%.

    The representative of the Chinese company Huawei Tatyana Fomicheva confirms that some customers refuse Cisco equipment and choose Huawei.

    However, not all market participants report a drop in Cisco sales. According to the IBS representative , contracts have been signed with Cisco that do not allow to refuse to supply their equipment. RepresentativeNVision claims that there is still a great demand for Cisco equipment from telecom operators. Do not see a decrease in purchases of equipment by the American company and Dmitry Solodovnikov.

    The director general of Open Technologies IT integrator Sergey Polovnikov claims that Cisco will not be able to keep deliveries at the same level.

    Sokolyuk does not believe that a sharp drop in Cisco supplies may occur in the near future.

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