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 to large bundles of products that range from its core networking products to more peripheral offerings from its broad portfolio, such as security software and its WebEx. . Video conferencing app. But now customers are starting to resist buying the company’s bundles, Information Wednesday’s report, citing current and former Cisco employees. From the report: Corporate IT departments, under pressure to save money, are cutting through their Cisco enterprise contracts with a fine-toothed comb on products they don’t use as much, the people said. Industry executives say a similar trend is happening across the enterprise software industry, creating problems for big companies like Microsoft and Oracle that encourage customers to buy products that span the suites. Cisco customers are turning down contract renewal offers that include software licenses for equipment the companies don’t think they use enough to justify, employees say. That contributed to a slowdown in sales of some of its subscription-based software, including Webex, AppDynamics and some security products, employees say.