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Exam Code: 500-240 Cisco Mobile Backhaul for Field Engineers (CMBFE) information search January 2024 by team

500-240 Cisco Mobile Backhaul for Field Engineers (CMBFE)

Exam Number: 500-240

Exam Name : Cisco Mobile Backhaul for Field Engineers (CMBFE)

Exam Duration : 40 min.

Number of Questions: 25-35

Pormat: Single and Multiple Choice, Proctored


20% 1.0 Mobile Backhaul Legacy Interoperability

20% 2.0 MBH End-to-End Communication Basics, Implementing Unified MPLS for IP MBH Communication - Clock and Timing

25% 3.0 Examining MBH Architecture and Transport Architectures, Migration Strategies for MBH, Foundational Principles of Radio Frequency

5% 4.0 Implementing Traffic Management

20% 5.0 Configuring Core Layer Devices, Aggregation Layer Devices, Cisco RAN Access Layer Devices, Advanced Features

5% 6.0 Cisco UMMT Service and Control Architectures

5% 7.0 Cisco ASR Devices for MBH

Cisco Mobile Backhaul for Field Engineers (CMBFE)
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Cisco Mobile Backhaul for Field Engineers
Question: 26 Section 1
What does virtualization of the core route reflectors do?
A. limit the availability
B. does not enhance resiliency
C. enhance resiliency or availability
D. adds complexity
Answer: C
Question: 27 Section 1
If a router receives routes from a route reflector, packets destined to the learned prefixes by default must go through
what path?
A. To the next BGP hop
B. To the BGP neighbor
C. The Route Reflextor
D. To the Next IGP hop
Answer: A
Question: 28 Section 1
Which three options can be considered a type of small cell (Choose three.)
A. Microcell
B. Femtocell
C. Micro
D. Pico
E. Picocell
F. Dendriticcell
Answer: ABE
Question: 29 Section 1
What is frequency, phase, and time of day synchronization in mobile architecture?
A. is natively supported in IPv6
B. is a key requirement for the radio equipment
C. is not important
D. was only required for legacy
Answer: B
500-240.html[8/4/2021 2:46:24 PM]
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Cisco Engineers information search - BingNews Search results Cisco Engineers information search - BingNews Best IT Certifications for 2024

Earning specialized certifications is a surefire way to advance your career in the IT field, regardless of industry or current career level. The right certification validates your skills and knowledge, which makes you more desirable to future employers who want to attract and retain the best employees. Below, we’ll explore the top IT certifications and share how to examine your goals to choose the right path forward. 

We’ve narrowed IT certifications into specific categories to help IT professionals assess what’s available and pursue the best certifications to show their willingness to learn and develop the in-demand career skills employers want.

Best database certifications 

Database platforms have changed greatly over the years, but database technology remains important for various applications and computing tasks. Available certifications for IT professionals include those for database administrators (DBAs), database developers, data analysts and architects, business intelligence, and data warehousing specialists, and other data professionals.

Obtaining database certifications demonstrates an understanding of database concepts, design, implementation, administration and security. This can boost your credibility in the job market and show potential employers that you have the skills needed to work with databases. The best database certifications include the following:

Best SAS certifications 

SAS is one of the world’s leading firms for business analytics, data warehousing and data mining. Today, the SAS Global Certification Program offers 23 credentials across categories including foundation tools, advanced analytics, business intelligence, data management and administration.

SAS programmers remain in high demand, with a quick search of job boards showing thousands of open positions. Obtaining SAS certification shows employers that you are proficient in the company’s popular suite of tools. Some of SAS’s certification programs include the following: 

Many professionals earn certifications to help navigate their career paths. According to the IT Salary Report, 92 percent of information technology professionals have at least one certification.

Best Cisco certifications 

Cisco Systems is a market leader not only in networking and communications products, but also storage networking and solutions for data centers. Cisco offers a variety of certifications for IT professionals, ranging from entry level credentials to expert-level exams. 

These certifications prepare professionals for Cisco-related careers. A search of job boards reveals thousands of open positions for Cisco experts, underscoring the continued relevance of these skills. Some of Cisco’s certifications include the following:

Best Dell certifications 

Dell Technologies remains one of the world’s leading computing companies. In addition to its well-known hardware lineup, Dell also offers solutions for networks, storage, servers, gateways and embedded computing, as well as a broad range of IT and business services.

Becoming certified in Dell products can help make IT professionals competitive in engineering roles for server, virtualization, networking, systems, integration and data security. Additional roles include consultants, account executives, system administrators, IT managers and deployment managers.

Best mobility certifications 

In the mobile era, it has become increasingly important for network engineers to support local, remote and mobile users, as well as provide proper infrastructure. The focus on application and app development now leans more toward mobile environments, requiring security professionals to thoroughly address mobility from all perspectives.

Due to the fast-changing nature of mobile technology, not many mobility certifications have become widely adopted. However, a few of the top mobility certifications can help IT professionals stand out in this rapidly evolving field. 

If part of your job includes selling and implementing an IT solution, you may want to pursue the best sales certifications. You’ll show your organization that you’re willing to go above and beyond to reach sales targets.

Best computer hardware certifications 

As remote and computer-based work has become more common, it’s more important than ever that businesses and individuals be able to maintain their hardware. While discussions about potential computer-related jobs often revolve around software work and coding, jumping into the IT field by becoming a computer technician is an excellent starting point.

Today, thousands of hardware technician jobs are available across the country. Entering this industry becomes more accessible for those who acquire computer hardware certifications. These certifications can showcase your expertise and proficiency in the upkeep of computers, mobile devices, printers and other hardware components.

Best Google Cloud certifications 

IT pros with solid cloud computing skills continue to be in high demand as more companies adopt cloud technologies. Today, Google Cloud is one of the market leaders in the cloud computing space. 

Regardless of where you are in your IT career, engaging with certification programs can demonstrate your willingness to keep on top of rapidly evolving cloud technologies. To that end, Google has introduced a host of certifications for its cloud platform, including the following: 

Best evergreen IT certifications

In the fast-changing world of technology, it can help to focus on certifications that have stood the test of time. “Evergreen” refers to certifications that remain popular year after year. 

The top evergreen certifications are based on exact pay surveys in IT, reports from IT professionals about certifications they want or pursue the most, and those that appear most frequently in online job postings. Obtaining these credentials is one step toward ensuring that your skills remain relevant for a long time: 

Best IT governance certifications 

IT governance provides structure for aligning a company’s IT with its business strategies. Organizations faced with compliance rigors always need experienced IT pros who can see the big picture and understand technology risks. This means certified IT governance professionals are likely to remain in high demand.

Earning one of the following certifications proves a commitment to understanding the role of IT governance and its position in a company’s current and future success. Getting certified can validate your expert knowledge and lead to advanced career opportunities.

Best system administrator certifications 

An IT system administrator is responsible for managing and maintaining the information technology infrastructure within an organization. The position demands sought-after career skills, ranging from configuring and maintaining servers and clients to managing access controls, network services, and addressing application resource requirements.

If you’re in charge of managing modern servers, there’s a long list of tools and technologies that system administrators must master. Obtaining some of the most prominent system administrator certifications can demonstrate your mastery to potential employers. 

Best ITIL certifications 

ITIL, or Information Technology Infrastructure Library, was developed to establish standardized best practices for IT services within government agencies. Over the ensuing four decades, businesses of all types embraced, modified, and extended ITIL, shaping it into a comprehensive framework for managing IT service delivery. 

The ITIL framework remains the benchmark for best practices in IT service and delivery management, offering certification programs that cater to IT professionals at all levels. These training and certification courses ensure that IT professionals stay well-prepared for the ongoing evolution in IT service delivery management. There are four certifications in the ITIL certification program:

Best enterprise architect certifications 

An IT enterprise architect is responsible for designing and managing the overall structure and framework of an organization’s information technology system. Enterprise architect certifications are among the highest that an IT professional can achieve; fewer than 1 percent ultimately reach this level. 

Enterprise architects are among the highest-paid employees and consultants in the tech industry. These certifications can put IT professionals on a path to many lucrative positions. The average worker earns over six figures annually. Some top enterprise architect certifications are listed below:

To become an enterprise IT architect, you’ll need knowledge of systems deployment, design and architecture, as well as a strong business foundation.

Best CompTIA certifications

CompTIA is a nonprofit trade association made up of more than 2,000 member organizations and 3,000 business partners. The organization’s vendor-neutral certification program is one of the best recognized in the IT industry. Since CompTIA developed its A+ credential in 1993, it has issued more than two million certifications.

CompTIA certifications are grouped by skill set and focus on the real-world skills IT professionals need. Armed with these credentials, you can demonstrate that you know how to manage and support IT infrastructure. 

Best Oracle certifications 

A longtime leader in database software, Oracle also offers cloud solutions, servers, engineered systems, storage, and more. The company has more than 430,000 customers in 175 countries. 

Today, Oracle’s training program offers six certification levels that span 16 product categories with more than 200 individual credentials. Considering the depth and breadth of this program — and the number of Oracle customers — it’s no surprise that Oracle certifications are highly sought after. 

Vendor-specific certifications address a particular vendor’s hardware and software. For example, you can pursue Oracle certifications and Dell certifications to become an expert in those companies’ environments.

Best business continuity and disaster recovery certifications

Business continuity and disaster recovery keep systems running and data available in the event of interruptions or faults. These programs bring systems back to normal operation after a disaster has occurred.

Business continuity and disaster recovery certifications are seeing a healthy uptrend as new cloud-based tools grow in popularity. While business continuity planning and disaster recovery planning have always been essential, they’re becoming more critical than ever — and IT certifications are following suit.

Tue, 02 Jan 2024 09:59:00 -0600 en text/html
Top Cisco Engineer Dave Ward Joins Next-Gen Networking Player PacketFabric as CEO

Cisco engineering legend Dave Ward is now leading networking startup PacketFabric as CEO, bringing with him his expertise in cloud, SDN, and telecommunications.


Dave Ward, Cisco's CTO of engineering and chief architect, will take over as CEO at next-gen network service provider PacketFabric.

Ward will bring his extensive background and patents in software-defined networking, cloud, and virtualization to the startup as it expands its cloud connectivity prowess, PacketFabric said on Tuesday.

PacketFabric's former CEO Chad Milam will remain on board as the company’s president and COO, the Culver City, Calif.-based firm said.

[Related: Connected Conservation: How Cisco And NTT Are Partnering To End Endangered Species Poaching]

Cisco in November announced a major restructuring of its business units and its executive team to better position itself against it competition. Perhaps one of the biggest change-ups was the announcement that Ward would be stepping down from his post to take a new role inside the San Jose, Calif.-based company; a role that was never announced.

Ward spent more than eight years at Cisco. Prior to his latest role as CTO of engineering, Ward was a Cisco Fellow and chief architect of the vendor's service provider division. Ward also served as CTO and chief architect of Juniper Networks' Platform Systems Division for two years.

PacketFabric, which got its start in 2017, offers a network-as-a-service platform for scalable, private connectivity. The firm in January announced that its hosted cloud connectivity platform now offers more capacity, reduced monthly recurring costs, and additional on-ramps to public clouds, such as Amazon Web Services, Microsoft Azure, Google Cloud Platform, and Oracle Cloud.

"During a career spanning over two decades in the telecommunications and networking sectors, I’ve been privileged to drive innovation for Cisco and Juniper Networks," Ward said in a statement. "PacketFabric is fundamentally rethinking enterprise and service communications in a way that others have not … I believe PacketFabric can lead and positively disrupt the next phase of transformation for the networking industry."

PacketFabric last year received a $75 million joint venture investment from Digital Alpha Advisors, LLC, a firm that focuses on digital infrastructure and services with a strategic collaboration agreement with Cisco.

The company has raised a total of $100 million, according to Crunchbase.

Tue, 21 Apr 2020 00:05:00 -0500 text/html
Cisco Down Two Execs As One Reportedly Jumps To John Chambers-Backed Pensando

Cisco's current senior vice president of customer transformation and former CIO Guillermo Diaz Jr. is leaving the company in February and Frank Palumbo, senior vice president of global data center sales, is also leaving, reportedly for Pensando Systems.


Cisco Systems is losing two high-ranking executives as its former CIO as well as data center sales leader prepare to leave the company.

Guillermo Diaz Jr., Cisco's current senior vice president of customer transformation since February and former chief information officer since 2015, is leaving the company in February 2020, according to an internal email viewed first by The Information. Frank Palumbo, senior vice president of global data center sales, is also leaving.

A spokesperson for Cisco confirmed the planned departures to CRN on Friday. CRN has reached out to Palumbo for comment. Diaz referred comment back to Cisco.

[Related: AWS, Cisco ‘Easing Pain Into The Cloud' With AWS Outposts Support, SD-WAN Tie-Ins]

Palumbo, Cisco's senior vice president of global data center sales, is reportedly joining Pensando Systems, an edge computing startup founded by ex-Cisco engineers and backed by former Cisco Chairman and CEO John Chambers, The Information reported on Friday. Palumbo worked at Cisco for 27 years.

Chambers ripped the sheet off Pensando Systems, his stealth software firm in October that develops hardware and software that lets companies run their servers more efficiently, particularly in the cloud. The company, which includes several high-profile ex-Cisco engineers such as Mario Mazzola, Prem Jain, Luca Cafiero and Soni Jiandani, is taking aim at AWS with its offerings.

Diaz, who has spent nearly two decades at Cisco, has been leading the firm's Customer Transformation business since he cleared out of the CIO seat in February. Cisco brought in Jacqueline Guichelaar, formerly chief information officer at Thomson Reuters, as its CIO in February.

The departures come on the heels of Cisco revealing plans to restructure several business units, including its cloud business and enterprise and data center networking segments to better position itself against competitors, the comp any said in an internal email in November.

Specifically, Cisco's enterprise networking and data center networking units are being combined. Cisco is also renaming its existing cloud computing business to Cloud Strategy and Compute and expanding the segment to include server products.

The San Jose, Calif.-based networking giant also reassigned several of its department leaders as a result of the restructure. Dave Ward, Cisco's chief technology officer of engineering and chief architect, is stepping down to take a new role inside the company. Roland Acra, senior vice president and general manager of Cisco’s Data Center business unit, will be his replacement. The soon-to-be combined enterprise and data center networking unit will be led by Cisco's Senior Vice President and General Manager of enterprise networking, Scott Harrell. Liz Centoni, a 19-year Cisco veteran and current senior vice president and general manager of IoT for the tech giant, will now lead Cisco's new Cloud Strategy and Compute business unit. Cloud computing's former leader, Kip Compton, is moving to Cisco’s Networking and Security Business group, Cisco said.

Fri, 06 Dec 2019 05:39:00 -0600 text/html
Is Cisco Stock a Good Long-Term Investment?

Many tech stocks rebounded in 2023 from the prior year's steep downturn, and Silicon Valley veteran Cisco Systems (CSCO -0.85%) was among them. Shares reached a 52-week high of $58.19 on Sept. 1. But the stock plunged in mid-November after Cisco released earnings for its fiscal first quarter, which ended Oct. 28. Investors clearly found something in the earnings report concerning.

For bargain hunters who are wondering if this drop has created a good buying opportunity, the question is: Are the things that triggered the sell-off long-term issues, or short-term ones that can be expected to eventually dissipate? Let's dive in and see.

Cisco's successes

Cisco actually delivered amazing results in the latest quarter. It was the strongest Q1 in company history in terms of revenue and profit. Sales rose 8% year over year to $14.7 billion, and net income grew 36% to $3.6 billion as the company met pent-up demand that had been left previously unfilled due to supply chain constraints.

The balance sheet was strong as well. At the end of the quarter, Cisco's assets totaled $98.8 billion compared to $53.6 billion in liabilities, and it had $23.5 billion in cash, cash equivalents, and investments.

Pending challenges

So why did the stock sink after Cisco posted such spectacular results? Because management warned it was seeing signs that the surge in demand was starting to subside -- namely, product orders declined 20% in the quarter.

As a result, the company offered revenue guidance of at least $12.6 billion for its fiscal Q2, which would be down significantly from the prior-year period's $13.6 billion. Management also forecast that the period of waning customer demand could last a couple of more quarters before it rose back toward normal levels. That weak near-term outlook led to the sell-off of Cisco stock.

But investors who are focused on the long term should keep in mind that this short-term headwind is expected to subside eventually, after which the stock will be poised to recover. And one key reason to be confident in Cisco's ability to bounce back is its software business.

Though Cisco built its reputation as a computer networking company, it has also developed a substantial set of software offerings, including IT systems monitoring and cybersecurity. This allows it to generate predictable recurring revenue through software-as-a-service (SaaS) subscriptions. Its SaaS segment isn't as sensitive to cyclical ups and downs as its hardware business.

To buy or not to buy Cisco

Cisco's SaaS offerings will strengthen after the company closes its acquisition of cybersecurity analytics firm Splunk in 2024. Splunk's solutions provide complementary capabilities that will enhance Cisco's cybersecurity product suite.

Also, Splunk's revenue, net income, and free cash flow all grew year-over-year in its fiscal third quarter, which ended Oct. 31. Splunk's business is prospering with $1.1 billion in fiscal Q3 sales -- revenue that will add to Cisco's top line next year.

Splunk's free-cash-flow growth should be a particularly attractive feature for income investors since it will add to Cisco's ability to maintain its dividend, which yields over 3% at the current share price. And Cisco has raised its payouts for 13 consecutive years, a solid track record. So long-term investors can collect Cisco's dependable dividend while waiting for its stock to bounce back.

In the wake of Cisco's exact share price drop, now is a good time to buy the stock to hold for the long term. Cisco's business will be even more well-positioned once its acquisition of Splunk closes and its sales bounce back from the looming cyclical downturn.

In the meantime, investors can benefit from Cisco's dividend, which makes it a good income stock. These factors point to Cisco as a worthwhile investment for the long haul.

Robert Izquierdo has positions in Cisco Systems and Splunk. The Motley Fool has positions in and recommends Cisco Systems and Splunk. The Motley Fool has a disclosure policy.

Tue, 12 Dec 2023 19:30:00 -0600 Robert Izquierdo en text/html
AnyConnect VPN

Overview of Service

The Cisco AnyConnect Secure Mobility Client, used for off-campus access, establishes a secure Virtual Private Network (VPN) between your computer/mobile device and the campus network. This connection grants access to restricted computing resources at Drexel, such as file servers, databases, Web sites, and privileged applications.

Getting Started

Sign in with your Drexel credentials at and follow the instructions to connect, or install the client appropriate for your device and operating system.

Note: VPN connection requires Multi-Factor Authentication.

Requesting Help

For help with network or internet problems, contact the Help Desk at 215.895.2020 or

Additional Information

Cisco provides AnyConnect Mobility Client software for many additional operating systems not listed here, but IT does not support them.

To maintain the highest level of security, use of alternative/third-party VPN client software is discouraged and not supported.

Thu, 13 Aug 2020 09:30:00 -0500 en text/html
How do search engines work?

There are different search engines that you can use to help you find webpages. We use most search engines in a similar way.

We need to think about the words that we use in our searches. Typing in wellington will return information on:

  • the capital city of New Zealand
  • wellington boots
  • a type of food

By adding extra words to the search, such as Wellington, New Zealand we can get more accurate results.

Some search engines only search for certain content. They might only search for news stories, facts or images.

Other search engines are designed for children to use. These search engines do not look at pages that are unsuitable for a child.

Sat, 25 Jul 2020 16:11:00 -0500 en-GB text/html
Investors Heavily Search Cisco Systems, Inc. (CSCO): Here is What You Need to Know No result found, try new keyword!The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Cisco. However, its Zacks Rank #3 ... Wed, 22 Nov 2023 00:00:00 -0600 Driven Technologies Expands Expertise With Strategic Acquisition Of Iementor

(MENAFN- EIN Presswire)

Driven Technologies - ieMentor

NEW YORK, NY, USA, January 3, 2024 /EINPresswire / -- Driven Acquisition Inc, DBA Driven Technologies, a NY based leading cybersecurity and cloud service provider, today announced the acquisition of ieMentor, a Cisco Gold Partner with multiple advanced specializations and a strong focus on security, networking, collaboration and data center solutions. The acquisition significantly elevates Driven Technologies' capabilities around Cisco security, networking, collaboration (incl. contact center) and data center skills. It also broadens the company's geographic reach and enriches its overall service offerings.

Founded in 2005 by 8x CCIE Roman Rodichev, ieMentor initially gained acclaim for its CCIE training services, empowering engineers to achieve prestigious Cisco certifications. Since then, the company has evolved into a comprehensive lifecycle IT solutions provider, showcasing deep engineering talent specifically around the Cisco Networking, Security, Collaboration & Data Center portfolio.

With the acquisition, Driven expands to 85 employees worldwide, 70%+ are engineers including 15 CCIE certifications spanning security, collaboration, networking and data center skills, reinforcing the company's commitment to its Secure, Modernize and Connect strategy.

The combined organization will also boast several advanced Cisco certifications and specializations, providing enhanced value to customers, including:

.Cisco Gold Integrator
.Advanced Security Architecture Specialization
.Advanced Collaboration Architecture Specialization
.Advanced Data Center Architecture Specialization
.Advanced Enterprise Networks Architecture Specialization
.EA 3.0 All Technology Portfolios
.Customer Experience Specialization
.Cisco Webex Contact Center Specialization

ieMentor customers will benefit from Driven's scale and extensive Managed Services capabilities, including deep expertise in Security, AI powered SOAR, XDR, Data Center, and Collaboration, as well as a broad vendor portfolio.

Rudy Casasola, Driven Technologies' CEO stated, "Our partnership with ieMentor on advanced security and networking offerings has been outstanding, leveraging their deep engineering expertise and CCIE certifications. This acquisition, together with the Cisco Gold Status expands Driven's portfolio and accelerates our growth. We are eager to provide our clients with even deeper solution offerings and deliver a level of service unlike any other in the market."

Roman Rodichev, ieMentor Founder & CEO, added, "Joining the Driven Technologies team was a natural fit. Throughout the years, our team has assisted organizations in modernizing and securing their networks using Cisco solutions. Together with Driven Technologies, our offerings and expertise complement one another, enabling us to provide additional value, capabilities, and depth of knowledge with an expanded emphasis on security to our customers."

As part of the acquisition, Roman Rodichev will join the Driven Technologies leadership team.

The acquisition underscores Driven Technologies' commitment to delivering best-in-class solutions for current and future IT needs of customers. The acquisition positions the company for continued growth, with expanded services and resources, ensuring clients receive unparalleled support in navigating the dynamic landscape of cybersecurity and cloud services.

About Driven Technologies
Driven is a cloud native service provider transforming the way companies leverage technology to Strengthen business by securing, modernizing, and connecting applications, users, and data.
Backed by Columbia Capital, at Driven Technologies, our message is simple: The world has changed, driven by new cyber threats, a pandemic, a growing hybrid workforce, multi-cloud applications, emerging business models, or any number of other seismic shifts from what used to be defined as a 'normal' IT environment. The solutions provider world also needs to change and adapt with the market and the changing needs of IT customers. To learn more, visit

About ieMentor
Established in 2005, ieMentor is committed to promoting knowledge and proficiency in Cisco IT solutions. Founded by 8x CCIE Roman Rodichev, the company initially focused on providing CCIE training services, empowering engineers to achieve the esteemed Cisco certifications, and has evolved into a prominent provider of comprehensive IT solutions.

Tripper Allen
Oxford + Bond
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Wed, 03 Jan 2024 05:24:00 -0600 Date text/html
Cisco Eyes $1 Billion in Artificial Intelligence (AI) Orders

Training and running advanced artificial intelligence (AI) models requires more than just powerful graphics processing units (GPUs). Those GPUs do the heavy lifting, but feeding the ultra-powerful chips with data can become a bottleneck. A cluster of servers with tens of thousands of GPUs linked together requires some heavy-duty networking gear to make it all work.

Cisco Systems (CSCO -0.85%) is the longtime leader in the switching and routing markets, with its proprietary products maintaining dominant market shares. Across the entire enterprise network infrastructure market, the company managed a 41% share in 2022, quadrupling that of its nearest competitor.

Cisco's model of bundling its proprietary hardware and software isn't appealing to everyone. A more flexible approach makes sense for the major cloud providers, which build data centers at incredible scale and have very specific networking needs.

Cisco competitor Arista Networks, which builds its networking gear using merchant silicon from third parties and layers a fully programmable operating system on top, has had great success in winning business from some of the cloud giants.

Going after the AI market

Given that the major cloud providers are scooping up the bulk of powerful GPUs to build out their AI capacity, Cisco would be missing out on a huge market without a change in strategy. The company hasn't had much of a presence among the major cloud providers in exact years, but its Silicon One family of networking chips is changing the picture.

"We regained our footing there because we listened and we showed flexibility with our willingness to disaggregate if they wanted to do so," said Cisco CEO Chuck Robbins during the latest earnings call, speaking of the major cloud providers. "So I think that the disaggregation and the flexibility and us listening to them and understanding what they wanted was the reason that we got back in," Robbins continued.

Cisco's Silicon One chips can power ultra-fast switches and routers, allowing cloud providers to build the networking architecture they need in their massive data centers. The chips are fully programmable and support massive data throughput, making them ideal for AI networks.

Cisco is having some early success with its AI-focused products and expects significant revenue down the road. The company's Ethernet AI fabric is deployed at three major hyperscale companies, and it expects to receive more than $1 billion in orders for AI infrastructure from major cloud providers in fiscal 2025. So far, the company has booked about $500 million in orders. By 2027, the market for AI switching is expected to top $10 billion.

Cisco will be going up against Arista, which is growing rapidly, thanks in part to a heavy dependence on Microsoft and Meta Platforms. Cisco's market share doesn't yield any advantages in winning business from major cloud providers, so its products must stand on their own. So far, the company appears to be gaining meaningful traction.

Is Cisco stock a buy?

Cisco generates more than $50 billion in revenue annually, so AI-related revenue will be a minor contribution for the foreseeable future. Even if demand for Cisco's AI products grows rapidly, the company's overall results are still heavily tied to the state of the economy. During times of economic uncertainty, Cisco's customers can pull back on tech spending and delay orders.

Cisco stock looks reasonably priced, trading for about 12 times the company's guidance for fiscal 2024 adjusted earnings. However, the company is facing some headwinds as customers work through products delivered as Cisco was bringing its backlog down to normal levels. Cisco expects one or two quarters of lower revenue before growth rebounds to more normal levels.

There's a risk that this slowdown will become more drawn out as customers pull back in an uncertain economic environment, which would put pressure on Cisco's profits. Still, a reasonable valuation coupled with a long-term opportunity to tap into the AI infrastructure market makes Cisco stock an interesting proposition.

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Timothy Green has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Arista Networks, Cisco Systems, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.

Fri, 01 Dec 2023 16:30:00 -0600 Timothy Green en text/html
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