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Industry Analyst on Cisco 2022 Growth Challenges: Jeff Kagan

It’s becoming more difficult for companies like Cisco to maintain balance and keep up with demand.
Equities columnist Jeff Kagan is a telecom, technology and wireless analyst and consultant. He covers 5G, AI, IoT, the metaverse, autonomous driving, healthcare, telehealth, pay TV and more. Follow him at and on Twitter @jeffkagan and LinkedIn.
Equities columnist Jeff Kagan is a telecom, technology and wireless analyst and consultant. He covers 5G, AI, IoT, the metaverse, autonomous driving, healthcare, telehealth, pay TV and more. Follow him at and on Twitter @jeffkagan and LinkedIn.

Image source: Cisco

What can we expect from Cisco Systems (CSCO) in 2022? As an industry analyst, I have followed many companies like Cisco and others in the telecommunications sector for decades. Recently, due to issues like the ongoing semiconductor chip shortage, supply chain delays and the coronavirus, it’s becoming more difficult for these companies to maintain balance and keep up with demand. Let’s take a look at the performance, challenges and what we can expect in 2022.

Cisco is a solid and growing networking company whose performance has been good through the pandemic we face. It also sees bumps in the road looking forward, however, due to a variety of factors.

Cisco industry leadership, growth and challenge will continue

The good news is that Cisco recently reported its revenue has climbed 8%. Concurrently, however, the company also warned about challenges like the supply chain. I see growth continuing, but I also see problems building as well… at least during the next several years.

The world of wire line and wireless connectivity on the network level for both voice and data services has rapidly grown and changed for as long as we can remember. The Internet, networking and semiconductor chips have also been a strong growth area.

These are some of the areas Cisco continues to see growth going forward.

While this is mostly great news for Cisco and their investors, there are also certain forces pushing against this otherwise sustainable growth market.

I believe many of the current problems facing Cisco are temporary. The problem is, like with the pandemic and supply chain issues, we simply do not know how long they will be with us.

Industry Analyst says Cisco remains one of industries leaders

Opposing forces have been rising in recent years and will continue to impact certain companies and certain sectors. Cisco is a great example of a company that faces such opposing forces.

The good news is that all companies and all countries are demanding modern computer, wireless, telecom and Internet networks. The bad news is that, until we can create more and keep up with this growing demand, the shortage of chips and supplies will continue.

The problem is simple. In today’s marketplace, supply simply cannot keep up with demand. On the spectrum of problems, this is the kind of problem you want to have, but it is still a problem.

Semiconductor chip supply cannot keep up with growing demand

Cisco has always been one of the strongest industry leaders and that will most likely continue. The problems it faces are real, but they should also, hopefully, be temporary.

These same problems also impact Cisco's competitors. This is not a Cisco-centric problem. It is an industry wide problem.

The growing semiconductor shortage and things like the coronavirus have impacted the ability for companies to hit the marketplace on all cylinders, as they have always done in the past.

Problems are not Cisco-centric, but they are still problems

Cisco is fighting the push and pull of the industrywide semiconductor demand curve. The company still has strong demand, just like its competitors, but it also faces supply chain issues and rising prices.

This push-pull creates a slower growth curve than would otherwise be happening. This should not be a permanent problem. So, if this is a temporary problem, the next question is how long will it last?

Cisco does not perform at the same level across all of its sectors. While Internet, telecom, and wireless networking products show strong growth, other areas are not as robust.

CEO Chuck Robbins discusses Cisco challenges

Cisco CEO Chuck Robbins was asked about price increases and supply chain related delays. He says, today its customers understand but are not happy.

I believe Cisco's customers will continue to understand this predicament since they face the same pressures in their own businesses.

The level of customer frustration will continue to grow going forward, however, until everything starts getting back to normal. That could take several years at best.

Cisco shows growth, but also deals with supply chain issues

Bottom line, Cisco continues to show growth, but it also must deal with supply chain issues and exploding semiconductor chip demand and rising cost.

The good news is companies like Cisco in this sector are seeing increasing demand from their customer base.

The bad news is supply chain issues and semiconductor chip shortages are making it difficult to keep up with that level of demand.

That means we have to watch the backlog of orders from Cisco and all of its competitors. As investors, workers and customers, we will be watching how well the company manages this growing issue.


Jeff Kagan is an Equities News columnist. Kagan is a Wireless Analyst, Technology Analyst and Commentator who follows Telecom, Pay TV, Cloud, AI, IoT, TeleHealth, Healthcare, Automotive, Self-Driving cars and more. Email him at [email protected]. His web site is Follow him on Twitter @jeffkagan and on LinkedIn at


Equities News Columnist: Jeff Kagan

Source: Equities News

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