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1、2023 Annual ReportCreating a world of potentialCisco(Nasdaq:CSCO)is the worldwide leader in technology that powers the internet.Discover more at and follow us on X at CiscoAboutCiscoOur strategyWe securely connect everything to make anything possibleOur differentiation InnovationCustomer outcomes at

2、 massive scale Market-leading secure networking Integrated solutions across broad portfolio Unmatched,AI-driven insights 400B security events observed per day 630B observability metrics tracked per dayTrustPurpose-driven,neutral,trusted brand Data protection and privacy at foundation Top-rated suppl

3、y chain Goal to reach net zero greenhouse gas emissions across value chain by 2040Global reachBroad customer and partner reach 1M+customers and partner ecosystem 99%of worlds largest companies 82,000+government organizationsCisco 2023 Annual Report1TABLE OF CONTENTSIntroduction to summary reportThis

4、 summary provides an overview of Cisco.It does not contain all the information you should consider.Please refer to our latest Annual Report on Form 10-K,our Proxy Statement for our 2023 Annual Meeting of Stockholders,and our Purpose Report which are all available on our website at FORWARD-LOOKING ST

5、ATEMENTSThis summary report and our annual report on Form 10-K(“Annual Report”)contain projections and other forward-looking statements regarding future events or the future financial performance of Cisco,including future operating results.These projections,goals and statements are only predictions.

6、Actual events or results may differ materially from those in the projections,goals or other forward-looking statements.See Ciscos filing with the Securities and Exchange Commission,including its most recent Annual Report for a discussion of important risk factors that could cause actual events or re

7、sults to differ materially from those in the projections,goals or other forward-looking statements.Our purposeTo power an inclusive future for allWe know that when we leverage the strengths and success of our company and people,we can positively impact the world,including the most vulnerable and und

8、erserved.We do this by closing the digital divide,empowering the future of work,fighting for equality and social justice,and building a regenerative planet.Customer priorities Transform infrastructure Secure the enterprise Power hybrid work Reimagine applications Journey to sustainabilityThese prior

9、ities are central to how we innovate and develop our technology2 Letter to stockholders4 Fiscal 2023 financial highlights6 Cisco strategy7 Leadership8 Corporate governance 12 Our purpose 2467812Cisco 2023 Annual Report2To our stockholders,Fiscal 2023 was a milestone year for Cisco.We delivered recor

10、d revenue of nearly$57 billion,up 11%year-over-year,which was our highest growth rate in over a decade.We also delivered record net income,earnings per share,and operating cash flow,and returned$10.6 billion to stockholders.Even more impressive is that we achieved this while successfully navigating

11、a dynamic operating environment.I am incredibly proud of all that our teams did this past year to deliver these results and to create value for our customers and stockholders.While change is a constant in our industry,our priorities remain the same:growing our market share;driving innovation and ext

12、ending our leadership;delivering exceptional stockholder value;and transforming our business model by growing recurring revenue.Fiscal 2023 marked a year of good progress on these priorities,and we expect this to continue into next year as well.Strong execution and share gainsAt the start of the fis

13、cal year,we were proactively managing through an evolving and complex market environment and taking actions to remediate supply challenges that affected almost every industry worldwide.Our past mitigation actions included redesigning hundreds of products and sourcing alternative key components to im

14、prove the resilience of our supply chain.Chuck RobbinsChair and Chief Executive OfficerLetter to stockholdersOur ability to navigate successfully through this environment led to our record results indicating solid customer demand in fiscal 2023.Quarterly sequential product order growth in our fourth

15、 quarter was over 30%,the second highest rate in 20 years,which is a testament to the strength of our portfolio and our execution.In addition,as supply constraints eased,we were able to deliver more of our technology to our customers which led to market share gains of over three percentage points in

16、 our three largest networking marketsCampus Switching,Wireless LAN and Service Provider Routing.We expect this market share momentum to continue in fiscal 2024.Innovation momentum Our customers are increasingly turning to Cisco to help them securely connect their businesses today and to build the ne

17、tworks of tomorrow.Throughout the year,we executed on our innovation strategy and announced several new solutions spanning generative artificial intelligence(AI),networking,security,full stack observability,sustainability,and hybrid work.Across our portfolio,we are focused on delivering a simpler an

18、d more unified experience for our customers.We know that the acceleration of AI will fundamentally change our world and create new growth opportunities for us.We launched new,market-leading AI technologies across our Collaboration and Security portfolios in addition to new infrastructure to allow ou

19、r customers to process AI workloads more efficiently.“The visibility we achieve through our growing recurring revenue enables us to strengthen our commitment to increasing shareholder returns through capital return,innovation,and strong execution.”Cisco 2023 Annual Report3While hyperscalers are cont

20、inuing their investments to grow public cloud infrastructure,they are also beginning their buildouts to capitalize on the possibilities of generative AI.In fact,our core networking technology is already powering some of the leading AI models run by hyperscalers around the world.We expect to see more

21、 demand for our technologies as these use cases require higher networking requirements.To address this demand,we launched our next generation Silicon One switching ASICs to support large-scale Graphics Processing Unit(GPU)clusters for AI workloads and,by the end of fiscal 2023,we had taken cumulativ

22、e orders for over half a billion dollars for ethernet fabrics.Additionally,we are piloting 800G capabilities for AI training fabrics.Overall,Cisco is committed to helping our customers navigate this transition in a trusted and responsible way,and we believe we are well positioned to win.Security als

23、o remains a top priority.Our Security Cloud platform has comprehensive capabilities across the network,endpoint,and the cloud helping to simplify security management while increasing efficacy.Our new technologies like Extended Detection and Response(XDR),Cisco Multicloud Defense,and Cisco Secure Acc

24、ess,a secure service edge(SSE)solution,are seeing rapid early adoption.These innovations,combined with our recent acquisitions,show how we are extending our security portfolio with deep telemetry,AI,and identity threat capabilities.As part of our journey to simplification,we have been working to ena

25、ble the monitoring and management of all Cisco networking productswhether on premises or in the cloudfrom one place.At Cisco Live,we introduced the Cisco Networking Cloud,a unified management platform and a cloud-native Full Stack Observability(FSO)platform to deliver unparalleled insights.I believe

26、 our portfolio is stronger than ever,and that Cisco has never been better positioned to help deliver our customers outcomes.As we look ahead,this gives me great confidence in our ability to drive innovation and extend our technology leadership by investing in significant new opportunities for growth

27、 in Cloud,Security,and AI.Accelerating our business transformation for greater visibilityIn fiscal 2023,we continued to make progress on the transformation of our business to more recurring-based offerings driven by higher levels of software and subscriptions.We generated almost$17 billion of softwa

28、re revenue,84%of which was subscription based.Total subscription revenue including services sold as subscriptions was over$24 billion and represented 43%of Ciscos total revenue.With the success of this transformation,we have gained greater predictability and visibility through our growing Annualized

29、 Recurring Revenue(ARR)and Remaining Performance Obligations(RPO).As we look ahead to fiscal 2024,we expect these factors,combined with our healthy backlog,will account for approximately 40%of the years revenue.Additionally,we have almost$1 billion of Enterprise Networking software subscriptions ava

30、ilable to renew in fiscal 2024.Long-term value creation and sustainability The visibility we achieve through our growing recurring revenue enables us to strengthen our commitment to increasing shareholder returns through capital return,innovation,and strong execution.Our long-term strategy is to del

31、iver operating leverage by growing earnings per share faster than revenue.We will also provide a high degree of consistency in our stock repurchase program and continue to grow our dividend.Cisco is committed to being a sustainable business as we believe it is not only a commercial and moral imperat

32、ive,but also a tremendous opportunity.As we work towards our net zero goals,our technologies such as IoT,Silicon One and power over ethernet,are helping our customers on their own sustainability journeys by enabling significant reductions in power consumption.Im incredibly proud that for the third y

33、ear in a row,Cisco was ranked#1 in the United States on Fortune Magazines 100 Best Companies to Work For list,as well as being a#1 Great Place to Work in 15 other countries around the world.This positions Cisco as a premier destination for top talent worldwide.To summarize,we had a phenomenal year.O

34、ur fiscal 2023 results demonstrate the strength of our business today and are a solid foundation for future growth.Our long-established leadership in networking,the breadth of our portfolio,the trust weve built with our customers and partners,and our collective commitment to innovation and to our pu

35、rpose give me great confidence in our future and our ability to capture the many opportunities ahead.Thank you for your continued support.Chuck Robbins Chair and Chief Executive Officer October 12,2023Cisco 2023 Annual Report4*Amounts may not sum and percentages may not recalculate due to roundingBy

36、 product category and services*202164.0%25.8%62.5%27.1%62.7%26.4%202262.5%27.1%62.7%26.4%202362.7%26.4%51%Secure,Agile Networks9%Internet for theFuture7%Collaboration7%End-to-End Security1%Optimized Application Experiences24%ServicesGross marginOperating marginFY23 RevenueBy geographical segment*59%

37、Americas27%EMEA15%APJC$15.52021$13.22022$19.92023($B)Revenue trend*(%)MarginProduct revenueServices revenue$49.82022$36.0$13.8$38.0$13.5$43.1$13.9$51.62023$36.0$13.8$38.0$13.5$43.1$13.9$57.0($B)Operating cash flowFiscal 2023 financial highlights2021$36.0$13.838.0%13.5%43.1%13.9%All amounts on an ann

38、ual basis.Fiscal 2023 financial highlightsCisco 2023 Annual Report5R.Scott HerrenEVP and Chief Financial Officer$265.46$177.38$142.292023202220218Cisco Systems,Inc.S&P 500S&P Information TechnologyComparison of 5-year cumulative total return*among Cisco Systems,Inc.,the S&P 500 Index,and

39、the S&P Information Technology IndexThis graph shows a 5-year comparison of the cumulative total stockholder return on Cisco common stock with the cumulative total returns of the S&P 500 Index and the S&P Information Technology Index.The graph tracks the performance of a$100 investment in Ciscos com

40、mon stock and in each of the indexes(with the reinvestment of all dividends).Stockholder returns over the indicated period are based on historical data and should not be considered indicative of future stockholder returns.*$100 invested on 7/28/18 in stock or index,including reinvestment of dividend

41、s.Fiscal year ending July 29,2023.Total stockholder returnPrimary uses of cash in FY23Dividends paid per shareShare repurchases and diluted share count($)(Millions)Dividends paid per shareCapital allocationShare repurchases and diluted share count$M$1.46$1.50$1.54594,2544,236642021Dividen

42、ds paid per shareCapital allocationShare repurchases and diluted share count$B$M$1.42$1.46$1.50644,23622220214,105Absolute number ofshares repurchasedDiluted share count4,192“We had a very strong fiscal year with record results.We executed well,delivering strong top line growth

43、,profitability,and cash flow.We continued to make progress on our business model shift to more recurring revenue which provides greater visibility and predictability,while making strategic investments in innovation to drive growth.We are committed to expanding operating leverage and increasing share

44、holder returns over the long term.”Capital allocation49%Dividends33%Share repurchases9%Repayment of debt7%Capital expenditures2%Acquisitions,netCisco 2023 Annual Report6Cisco strategyAs our customers add billions of new connections to their enterprises,and as more applications move to a multicloud e

45、nvironment,the network becomes even more critical.Our customers are navigating change at an unprecedented pace.In this dynamic environment,we believe their priorities are to transform infrastructure,secure the enterprise,power hybrid work,reimagine applications,and drive toward sustainability.Secure

46、,Agile NetworksBuild networking solutions with built-in simplicity,security,agility and automation that can be consumed as a serviceOptimized Application ExperiencesEnable greater speed,agility and scale of cloud-native applicationsHybrid WorkDeliver highly secure access,a safer workplace and collab

47、oration experiences for the hybrid workforceInternet for the FutureTransform connectivity by efficiently meeting the ever-growing demand for low-latency and higher speedsEnd-to-End SecurityBuild simple,integrated,and high efficacy end-to-end security solutions,delivered on-premise or in the cloudCap

48、abilities at the EdgeDevelop new capabilities for a distributed world while enhancing the developer experience and extending enterprise and carrier networksOur strategy is to securely connect everything.We are committed to driving a trusted customer experience through our innovation,solutions,choice

49、,and people.We are continuing to incorporate Artificial Intelligence(AI)and Machine Learning(ML)across our portfolio to enable further innovation and to empower our customers to drive increased productivity and better user experiences.We are investing in new opportunities in AI,launching new technol

50、ogies across our product portfolios designed to boost productivity,enhance policy management and simplify tasks.Increasingly,our offerings are crossing multiple product categories.As our core networking offerings evolve,we expect we will add more common software features across our core networking p

51、latforms.We are increasing the amount of software offerings that we provide and the proportion of subscription software offerings.We are also focused on the entire customer lifecycle to drive expansion and renewals.We are also accelerating our efforts to enable the delivery of network functionality

52、as a service,as our customers increasingly want to consume technologies in flexible ways.To execute on our strategy and address our customer priorities,we are focusing on the following strategic pillars:Secure,Agile Networks;Optimized Application Experiences;Hybrid Work;Internet for the Future;End-t

53、o-End Security and Capabilities at the Edge.7Cisco 2023 Annual ReportChuck Robbins Chair and Chief Executive OfficerLiz Centoni EVP,Chief Strategy Officer,and General Manager,ApplicationsEyal DaganEVP,Common Hardware GroupJonathan DavidsonEVP and General Manager,Cisco NetworkingMaria PoveromoSVP and

54、 Chief Communications OfficerR.Scott HerrenEVP and Chief Financial OfficerCarrie PalinSVP and Chief Marketing OfficerJeff SharrittsEVP and Chief Customer and Partner OfficerFrancine KatsoudasEVP and Chief People,Policy&Purpose OfficerMaria MartinezEVP and Chief Operating OfficerJeetu PatelEVP and Ge

55、neral Manager,Security&CollaborationDev StahlkopfEVP,Chief Legal Officer and Chief Compliance OfficerMark PattersonSVP,Chief of Staffto the Chairand CEOLeadershipCiscos executive leadership teamLeadershipCisco Learn more about Ciscos executive leadership team at https:/ Diverse leadershipAt Cisco,di

56、versity,inclusion,and collaboration are fundamental to who we are,how we create the best teams,and how we drive success.A diverse workplace creates a vibrant culture where everyone is welcomed,respected,valued,and heard.Cisco has signed the CEO Action for Diversity and Inclusion Pledge.We are delive

57、ring on this pledge by accelerating full-spectrum diversityincluding gender identity,age,race,ethnicity,sexual orientation,disability status,nationality,religion,military status,background,culture,experience,strengths and perspectives.It starts at the top in that 46%of our executive leadership team(

58、ELT)are women and 54%are diverse in terms of gender or ethnicity,making Cisco an industry leader in ELT diversity.54%diversebased ongender orethnicityCisco 2023 Annual Report8Ciscos Board of Directors recognizes that being a sustainable business is essential for success and in fiscal 2023 created a

59、new Environmental,Social and Public Policy Committee.This committee will enhance oversight of Ciscos initiatives,policies,programs,and strategies tied to environmental sustainability and other key corporate social responsibility and public policy matters.Stockholder engagementAt Cisco,we recognize t

60、he importance of regular and transparent communication with our stockholders.Each year,we continually engage with a significant portion of stockholders that includes our top institutional investors.In fiscal 2023,our Board of Directors,Executive Leadership and Investor Relations team met with invest

61、ors representing approximately 40%of our shares outstanding,including 79%of our 30 largest stockholders.We engaged with these stockholders on a variety of topics,including our business and long-term strategy,corporate governance and risk management practices,board leadership and refreshment,diversit

62、y,corporate responsibility initiatives(including environmental,social,and governance topics),executive compensation program,and other matters of stockholder interest.Risk management approachWe believe that risk is inherent in innovation and the pursuit of long-term growth opportunities.Ciscos manage

63、ment is responsible for day-to-day risk management Corporate governanceactivities.The Board of Directors,acting directly and through its committees,is responsible for the oversight of Ciscos risk management.With the oversight of the Board of Directors,Cisco has implemented practices,processes,and pr

64、ograms designed to help manage the risks to which we are exposed in our business and to align risk-taking with our efforts to increase stockholder value.Policies and practicesWe have adopted corporate governance policies,guidelines,and practices that are consistent with our commitment to transparenc

65、y and best-in-class practices,as well as to ensure compliance with the rules and regulations of the SEC,the listing requirements of Nasdaq,and applicable corporate governance requirements.Stockholder proxy access Annual election of all directors(since IPO)Majority voting(since 2007)Robust Lead Indep

66、endent Director role Stockholder right to call a special meeting(since IPO)No poison pill Recoupment/clawback policy Stock ownership guidelines for directors and executive officers Stockholder recommendations for director candidate to the Board Stockholder right to act by written consent(since IPO)R

67、isk oversightAudit CommitteeThe Audit Committee,which oversees financial and risk management policies,and programs related to cybersecurity and data protection,currency,interest rate,equity,and insurance risk,receives regular reports on enterprise risk management(ERM)from the chair of the ERM operat

68、ing committee and receives regular reports on cybersecurity from senior management on a quarterly basis and a detailed presentation from our Chief Security and Trust Officer two or more times per year.Other committeesOther board committees oversee certain categories of risk associated with their res

69、pective areas of responsibility.Board of DirectorsThe Board of Directors regularly discusses many core subjects with executive management,including strategy,operations,information systems,finance,legal and public policy matters,in which risk oversight is an inherent element.ManagementCiscos manageme

70、nt has implemented an ERM program,managed by Ciscos internal audit function,that is designed to work across the business to identify,evaluate,govern,and manage risks and Ciscos response to those risks.Ciscos internal audit function manages the enterprise ERM program and performs an annual risk asses

71、sment that is used by the ERM program.The structure of the ERM program includes both an ERM operating committee that focuses on risk management-related topics and an ERM executive committee consisting of members of management.The ERM operating committee conducts global risk reviews and provides regu

72、lar updates to the ERM executive committee.Corporate governance9Cisco 2023 Annual ReportExecutive compensation Consistent with our business model transformation to meet the evolving needs of our customers and increasing the amount of subscription offerings that we provide,we incorporated a product a

73、nnualized recurring revenue(ARR)performance metric into our fiscal 2023 executive compensation program to better align our program with our transforming business model.Additionally,our pay-for-performance philosophy underscores our commitment to sound compensation and governance practices.Given the

74、importance of ESG matters to Ciscos strategy,for fiscal 2023,we continued to incorporate a team performance factor into our variable cash incentive plan,the Executive Incentive Plan,which was scored based on the executive leadership teams joint execution with respect to our overall ESG strategy,incl

75、uding specific goals on environmental and social matters.These charts summarize the major elements of target total direct compensation for our CEO and our other named executive officers(NEOs1)as a group for fiscal 2023 and demonstrate our continued pay-for-performance philosophy.1 As defined in our

76、Proxy Statement for our 2023 Annual Meeting of StockholdersIndependent compensation committee Independent compensation consultant Comprehensive annual compensation program riskassessment Annual compensation peer group reviewCaps on incentive compensation Performance on specific initiatives considere

77、d in the variable cash incentive program for executive officersNo employment,severance,or change in control agreements for our executive officers Stock ownershipguidelines Recoupment/clawback policy Limited perquisites No single-trigger vesting of equity award grants No stock option repricing or cas

78、h-out of underwater equity awards No supplemental executive retirement plan or executive-defined benefit pension plan No golden parachute tax gross-ups Broad anti-pledging and anti-hedging policies We apply leading executive compensation practicesOur executive compensation program rewards performanc

79、eCompensation philosophy is designed to attract and retain,motivate performance,and reward achievement Performance measures are aligned with stockholderinterests Majority of annual total direct compensation is performance-basedNo dividends or dividend equivalents are paid or settled on unvested awar

80、dsCEONEOsotherthan CEONEOsotherthan CEO67%Performance-based equity incentive awards57%Performance-based equity incentive awards23%Time-based equity incentive awards32%Time-based equity incentive awards8%Variable cash incentive awards7%Variable cash incentive awards3%Base salary5%Base salaryAmounts m

81、ay not sum due to rounding.Corporate governance10Cisco 2023 Annual ReportBoard of DirectorsCiscos Board of Directors is composed of skilled and diverse directors who are committed to strong corporate governance structures and practices that help Cisco build long-term stockholder value.The Board beli

82、eves strongly in the value of an independent board of directors and has established a Lead Independent Director role with broad authority and responsibility.Independent board members have consistently comprised over 75%of the members of the Board of Directors and all members of our Board committees,

83、including the Audit Committee,the Compensation and Management Development Committee and the Nomination and Governance Committee are independent.M.Michele Burns,65Independent DirectorFormer Chair and CEO,Mercer LLCWesley G.Bush,62Independent DirectorFormer Chair and CEO,Northrop Grumman CorporationJo

84、hn D.Harris II,62Independent DirectorFormer Vice President of Business Development,Raytheon CompanyCharles H.Robbins,57Chair and Chief Executive OfficerMichael D.Capellas,69Lead Independent DirectorFounder and CEO,Capellas Strategic PartnersDr.Kristina M.Johnson,66Independent DirectorFormer Presiden

85、t,The Ohio State UniversityMark Garrett,65Independent DirectorFormer CFO,Adobe Systems IncorporatedRoderick C.McGeary,73Independent DirectorFormer Vice Chair,Consulting,KPMG LLPDr.Lisa T.Su,53Independent DirectorChair,President and CEO,Advanced Micro Devices,Inc.Marianna Tessel,55Independent Directo

86、rExecutive Vice President and General Manager,Small Business and SelfEmployed Group,Intuit Inc.Director SinceAUCAQESPPNGCommitteesBoard skills and attributesLeadershipSales and marketingAcademiaTechnologyFinancial experiencePublic company board experienceGlobal business2022200320021201220

87、0320232015 20202021Sarah Rae Murphy,40Independent Director Former Chief Procurement Officer and Senior Vice President of Global Sourcing,United AirlinesDaniel H.Schulman,65Independent Director Former President and Chief Executive Officer,PayPal Holdings,Inc.Environmental,Social and Public Policy Com

88、mitteeESPPAudit CommitteeAUCompensation and Management Development CommitteeCAcquisition CommitteeAQNomination and Governance CommitteeNGChairMemberKey to CommitteesCorporate governanceLeadership12Financial experience11Global business11Public company board experience10Gender/ethnic/racial/sexualorie

89、ntation diversity6 42%Women 58%Men 83%White 8%African American or Black and Native American 8%Asian 17%LGBTQ+11 Independent 1 Non-Independent 7 Director 0-5 years 1 Director 6-8 years 4 Director 9+yearsThe role of the Board of Directors in strategyOne of the Boards key responsibilities is overseeing

90、 managements formulation and execution of Ciscos strategy.Throughout the year,our CEO,the executive leadership team,and other leaders from across the company provide detailed business and strategy updates to the Board.During these reviews,the Board engages with the executive leadership team and othe

91、r business leaders regarding various topics,including business strategy and initiatives,capital allocation,portfolio updates,the competitive landscape,talent and culture(including inclusion and diversity),other matters affecting our long-term strategy(including our environmental impact and human rig

92、hts implications of Cisco product development and sales),and regulatory developments.Additionally,on an annual basis,the Board reviews and approves Ciscos financial plan.The Lead Independent Director also chairs regularly scheduled executive sessions of the independent directors,without Cisco manage

93、ment present,during which Ciscos strategy is reviewed and other topics are discussed.Board snapshotBoard Skills and Attributes11Cisco 2023 Annual ReportDirectortenureRace/ethnicitydiversity*Percentages may not total 100%due to rounding.GenderdiversitySexualorientationdiversityBoardgovernancestructur

94、eAcademia1Technology10Sales and marketing7Cisco 2023 Annual Report12Our purposeFor decades,Cisco has been evolving and expanding the way it positively impacts people and the planet,and we are driven by our Corporate Purpose:to Power an Inclusive Future for All.We believe that technology,when thought

95、fully and strategically applied,can help address inequities;bring positive,lasting change to peoples lives and communities;and benefit the planet.To help fulfill our Purpose,we leverage our technology and catalyze our networks,partners,and people to make a positive impact in communities worldwide an

96、d for the planet.We know we can achieve so much more when we work in partnership with those aligned with our values and purpose.The upcoming fiscal 2023 Purpose Report,which will be published in December 2023,will describe our latest impact,goals,and progress on our Purpose journey.Purpose governanc

97、e andmanagement Ciscos People,Policy,and Purpose organization leads our social investment programs and champions our commitment to environmental,social,and governance(ESG)performance and transparency.Within this organization is a core reporting team which engages with stakeholders,leads ESG material

98、ity assessments1 for all our voluntary reporting,and stewards reporting activities.Our reporting is aligned with standards set by the Global Reporting Initiative,Sustainability Accounting Standards Board,the Task Force on Climate-related Financial Disclosures,and the UN Sustainable Development Goals

99、.1 ESG materiality,as referred to in this Report,and our ESG materiality assessment process are different from materiality in the context of Securities and Exchange Commission(SEC)disclosure obligations.Issues deemed material for purposes of our ESG reporting and for purposes of determining our ESG

100、strategy may not be considered material for SEC reporting purposes,nor does inclusion of information in our ESG reporting indicate that the topic or information is material to Ciscos business or operating results.“We are driven by our Purpose to harness the power of connectivity for our customers,em

101、ployees,and communities around the world.”Francine Katsoudas EVP and Chief People,Policy&Purpose OfficerCisco 2023 Annual ReportOur purpose13Purpose governance and management Board of DirectorsEnvironmental,Social,and Public Policy CommitteeOversees the Companys initiatives,policies,programs,and str

102、ategies concerning environmental sustainability and other key corporate social responsibility and public policy matters.People,Policy,and Purpose Organization Business Functions and Cross-Functional GroupsGovernance,Risk,and Controls Champions Ciscos company-wide commitment to ESG performance and tr

103、ansparencyConduct due diligence and implement policies and programs for specific focus areasChampion Enterprise Risk Management(ERM)efforts across the business to identify,assess,and manage risksESG Topics*EnvironmentalSocialGovernance Climate change and GHGs Circular economy Operational waste Envir

104、onmental regeneration and protection Water Inclusion and diversity Talent Human rights and working conditions in the supply chain Employee wellbeing Employee health and safety and labor rights Digital inclusion Community impact Critical human needs and disaster relief Economic empowerment Corporate

105、governance Data security and privacy Business ethics Innovation and responsible technology*These ESG focus areas are the topics identified in our FY23 ESG materiality assessment.The topics found to be of greater importance are noted in bold.Other Board Committees Acquisition Audit Compensation and M

106、anagement Development Nomination and Governance Powering an inclusive future for allCiscos Purpose to Power an Inclusive Future for All is increasingly a differentiator for our business.We can do good for the world and do good for business when we combine our technology,our people,and our broader ne

107、tworks.We pursue our Purpose by closing the digital divide,empowering the future of work,fighting for equality and social justice,and building a regenerative planet.Our ESG programs and disclosures deliver value to our stakeholders,including our stockholders,customers,partners,suppliers,employees,ou

108、r global communities,and the environment.PowerSince our founding in 1984,Cisco has helped power the worlds connectivity and accelerate the transition to the digital age.Our software and solutions protect the data of millions of users within public sector organizations and businesses of all sizes.At

109、Cisco,we cultivate trust and hold ourselves to the highest standards of business conduct.This requires applying leading security and privacy,and human rights principles to the design,sourcing,manufacturing,and sale of our solutions,and working to integrate a human rights perspective across Ciscos gl

110、obal business.Cisco works to instill trust by operating with transparency,fairness,accountability,and integrity in every aspect of our business from the integrity of our solutions and networks,to our cyber-resilience strategies that we openly share with organizations around the world,to our financia

111、l transparency and high standards of fair and responsible conduct.Cisco 2023 Annual ReportOur purpose14Cisco is committed to making our products and solutions responsibly,and that commitment extends to our manufacturing partners and suppliers,and the standards they uphold for labor,health and safety

112、,environment,and human rights.We are a founding member of the Responsible Business Alliance(RBA)and have long adopted the RBA Code of Conduct as our Supplier Code of Conduct.We assess our suppliers conformance to our policies through risk assessments,audits,and targeted engagements.If suppliers do n

113、ot meet our standards,we work with them to improve and hold them accountable to achieve that improvement.We also work across the Information and Communications Technology(ICT)industry to build supplier capacity to support a baseline of human rights and environmental standards.This work in our supply

114、 chain is a core element of our commitment to our Purpose.InclusiveWe believe Diversity,Equity&Inclusion(DEI)is a core competency and lens that we leverage to accelerate and amplify Ciscos existing business goals and mission.It is intrinsic to who we are and who we intend to be long into the future.

115、We promote inclusivity through our Conscious Culture and Social Impact Initiatives.Our Conscious Culture is a set of expectations,principles,and measures that define Ciscos values,beliefs,and ethos.Our values and expectations are laid out in our Code of Business Conduct.Every employee must certify c

116、ompliance with the code each year to help uphold integrity in the workplace and the ethical use of data and resources,and to help prevent conflicts of interest.Living a Conscious Culture requires us to act with dignity,respect,fairness,and equity in each of our interactions with one another,allowing

117、 us to become a catalyst for social change.When people are respected for who they are and encouraged to seek balance between work and personal life,we believe they are more productive and successful in their jobs and able to give their best to their families and communities.In fiscal 2017,we set a g

118、oal to achieve 80%employee participation in community impact by 2020.We achieved that goal and have sustained or exceeded 80%employee participation since then.At Cisco,we believe in equal rights,access to opportunity,and promoting justice and fair treatment.In 2020,we transformed our longstanding ad

119、vocacy for social justice into a global,enterprise-wide commitment to leading bolder action and creating lasting change.Guided by our Social Justice Beliefs,we designed 12 Actions for Social Justice to bring together the full power of our technology,our people,and our ecosystem.We embarked on a five

120、-year journey,backed by a US$300 million commitment,to explore new ways to address systemic challenges and create opportunities that can change the trajectory of entire communities and power an inclusive future for all.Selected company goals25 million additional people reached through Cisco Networki

121、ng Academys digital and cybersecurity skills training by FY321 billionpeople positively impacted through our social impact grants and signature programs by FY25Note:Progress against all goals listed by fiscal year(FY)is measured through the end of the fiscal year.For more information see our ESG Rep

122、orting Hub at https:/ highlights At Cisco,46%of our ELT are women and 54%are diverse in terms of gender or ethnicity On our Board of Directors,42%are women,58%are men,8%are Asian,8%are African American or Black,and Native American,83%are White,and 17%are diverse in terms of sexual orientation In FY2

123、2(data excludes certain acquisitions)our global employee base was comprised of 29%women,71%men,and 0.1%nonbinary,and our U.S.employee base was comprised of the following ethnicities:50.9%White/Caucasian,34.6%Asian,6.6%Hispanic/Latino,5.5%African American/Black,1.9%two or more races(not Hispanic or L

124、atinx),0.3%American Indian or Alaska Native,and 0.2%Native Hawaiian/Other Pacific Islander 71%Men 29%Women 0.1%NonbinaryGlobalemployeesbased onFY22 dataCisco 2023 Annual ReportOur purpose15Our science-based net-zero GHG emissions goal and near-term targetsCiscos 12 Actions initially focused on drivi

125、ng greater impact across the African American/Black community.Now,were building a strategic framework and holistic services that can be adapted and scaled across the full spectrum of diversity,including underserved or vulnerable communities around the world.Cisco has always been committed to compens

126、ating our employees fairly and equitably.We are a founding signer of the White House Equal Pay Pledge and the Parity.org pledge,and are a leader in the charge to make fair pay a reality for all employees through the Employers for Pay Equity Consortium.In 2016,Cisco set a goal to positively impact on

127、e billion people by 2025 through our social impact grants and signature programs2,and we are well on our way to realizing this goal.We prepare millions of learners with digital skills through Cisco Networking Academy,one of the worlds longest running learning and digital skills programs.In fiscal 20

128、23,we celebrated its 25th anniversary,reaching 20.5 million learners across 190 countries since 1997.As we marked these successes,we also announced an ambitious next phase goal:to provide digital and cybersecurity skills training to an additional 25 million people through Cisco Networking Academy ov

129、er the next decade.2 Some of our social impact grantees receive funding from other organizations.In January 2022 Cisco completed an external limited assurance review of our progress toward this goal.For more information see the criteria document and assurance report available at our ESG Reporting Hu

130、b at https:/ Targets By FY25:Net-Zero Goal By 2040:90%reduction in absolute Scope 1 and 2 GHG emissionsCompared to FY19.We will neutralize any remaining emissions by removing an equal amount from the atmosphere.By FY30:30%reduction in absolute Scope3 emissions from purchased goods and services,upstr

131、eam transportation and distribution,and use of sold productsCompared to FY19.You will be able to read more about our progress toward our net-zero goal and near-term targets in our fiscal 2023 Purpose Report and ESG Reporting Hub.Reach net-zero emissions across our value chainBy reducing our absolute

132、 Scope 1,2,and 3 emissions by at least 90%compared to FY19 and neutralizing any remaining emissions by removing an equal amount from the atmosphere.FutureAn inclusive future depends on a healthy planet.Our holistic approach to environmental sustainability includes how we operate our business,how we

133、help our customers and suppliers make progress toward their sustainability goals,and how we do our part to help the world adapt to a changing climate.Our environmental sustainability strategy focuses on three priorities:accelerating the transition to clean energy,evolving our business to circular,an

134、d fostering resilient ecosystems.Accelerating the transition to clean energyTo power the world with renewables,the grid requires updated digital infrastructure in order to connect diverse,decentralized sources of clean energy.But even as the world electrifies,we must simultaneously reduce the amount

135、 of energy used by a connected economy.To help advance these priorities,we will:Improve our product power efficiency Collaborate with our customers,partners,and suppliers to accelerate the energy transition Continue to increase our use of renewable energy in Ciscos operationsOne important piece of C

136、iscos clean energy strategy is our goal to reach net-zero greenhouse gas(GHG)emissions across our value chain by 2040,by prioritizing reductions across all scopes of emissions.We are proud that Ciscos 2040 net-zero goal was approved by the Science Based Targets initiative(SBTi)in 2022,under its Net-

137、Zero Standard.Cisco was one of the first technology hardware and equipment companies to have its net-zero goal validated under the SBTi Net-Zero Standard.16Cisco 2023 Annual ReportOur purposeEvolving our business to circularThe world must transition from a linear economy that extracts resources and

138、eventually wastes them,to a circular one which finds new uses for products and their inputs.We aim to transform our business to extend the useful life of our products and provide ongoing services.This includes continuing to deploy business models to extend the value of our products and reduce enviro

139、nmental impacts.In fiscal 2023,we continued to work towards our goal of 100%of new Cisco products and packaging incorporating our Circular Design Principles by fiscal 2025.This included further embedding circularity into key design tools and the standard product development process.You will be able

140、to read more about our progress on this goal and others in our fiscal 2023 Purpose Report and ESG Reporting Hub.Fostering resilient ecosystems It is in our shared interest to help humans and nature navigate a changing climate by investing in regenerative technologies,workforces,and nature itself.Thi

141、s includes enabling communities to adapt to climate realities,cultivating skills and talent for the regenerative economy,and deploying Cisco technology to protect and restore ecosystems and biodiversity.Examples include:A multi-year,multi-million-dollar partnership with Mercy Corps,the global humani

142、tarian nonprofit,to help them develop and scale technology-enabled climate solutions that can build resilience in communities that are experiencing devastating drought conditions in Kenya.An investment from the Cisco Foundation of US$100 million over ten years in climate solutions that draw down the

143、 carbon already in the atmosphere and/or regenerate depleted ecosystems.As of the end of fiscal 2023,the Cisco Foundation had disbursed approximately US$19.8 million dollars to early-stage solutions that are in diverse stages of development,from conceptual ideas to solutions that are ready for comme

144、rcial deployment and widespread impact.Selected circular economy goals100%of new Cisco products and packaging incorporate circular design principles by FY2570%of Cisco component and manufacturing suppliers(by spend)achieve a zero-waste diversion rate at one or more sites by FY2550%of plastic used in

145、 our products(by weight)made of recycled content by FY25(the plastics included in this goal exclude those contained in commodity components sourced from suppliers,e.g.,plastic screws,fans,and cables)UNITED STATES SECURITIES AND EXCHANGE COMMISSIONWASHINGTON,D.C.20549FORM 10-K(Mark One)ANNUAL REPORT

146、PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended July 29,2023 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _ to _ Commission file number 001-39940CISCO SYSTEMS,INC.(Exact name

147、of registrant as specified in its charter)Delaware(State or other jurisdiction of incorporation or organization)170 West Tasman Drive San Jose,California (Address of principal executive offices)77-0059951(IRS Employer Identification No.)95134-1706(Zip Code)Registrants telephone number,including area

148、 code:(408)526-4000 Securities registered pursuant to Section 12(b)of the Act:Title of each class:Trading Symbol(s)Name of each exchange on which registeredCommon Stock,par value$0.001 per shareCSCOThe Nasdaq Stock Market LLCSecurities registered pursuant to Section 12(g)of the Act:NoneIndicate by c

149、heck mark if the registrant is a well-known seasoned issuer,as defined in Rule 405 of the Securities Act.Yes NoIndicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d)of the Act.Yes NoIndicate by check mark whether the registrant(1)has filed al

150、l reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during the preceding 12 months(or for such shorter period that the registrant was required to file such reports),and(2)has been subject to such filing requirements for the past 90 days.Yes NoIndicate by check

151、 mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T(232.405 of this chapter)during the preceding 12 months(or for such shorter period that the registrant was required to submit such files).Yes NoIndicat

152、e by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a smaller reporting company,or an emerging growth company.See the definitions of“large accelerated filer,”“accelerated filer,”“smaller reporting company,”and“emerging growth company”in Ru

153、le 12b-2 of the Exchange Act.Large accelerated filer Accelerated filer Non-accelerated filer Smaller reporting company Emerging growth company If an emerging growth company,indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or re

154、vised financial accounting standards provided pursuant to Section 13(a)of the Exchange Act.Indicate by check mark whether the registrant has filed a report on and attestation to its managements assessment of the effectiveness of its internal control over financial reporting under Section 404(b)of th

155、e Sarbanes-Oxley Act(15 U.S.C.7262(b)by the registered public accounting firm that prepared or issued its audit report.If securities are registered pursuant to Section 12(b)of the Act,indicate by check mark whether the financial statements of the registrant included in the filing reflect the correct

156、ion of an error to previously issued financial statements.Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrants executive officers during the relevant recovery period pursuan

157、t to 240.10D-1(b).Indicate by check mark whether the registrant is a shell company(as defined in Rule 12b-2 of the Act).Yes NoAggregate market value of registrants common stock held by non-affiliates of the registrant,based upon the closing price of a share of the registrants common stock on January

158、 27,2023 as reported by the Nasdaq Global Select Market on that date:$198.6 billionNumber of shares of the registrants common stock outstanding as of September 1,2023:4,054,857,783DOCUMENTS INCORPORATED BY REFERENCEPortions of the registrants definitive Proxy Statement relating to the 2023 Annual Me

159、eting of Stockholders,to be held on December 6,2023,are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated.PART IItem 1.Business .1Item 1A.Risk Factors.14Item 1B.Unresolved Staff Comments.29Item 2.Properties.29Item 3.Legal Proceedings .29Item 4.Mine Safety Dis

160、closures.29PART IIItem 5.Market for Registrants Common Equity,Related Stockholder Matters,and Issuer Purchases of Equity Securities.30Item 6.Reserved.31Item 7.Managements Discussion and Analysis of Financial Condition and Results of Operations.32Item 7A.Quantitative and Qualitative Disclosures About

161、 Market Risk.52Item 8.Financial Statements and Supplementary Data.54Item 9.Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.100Item 9A.Controls and Procedures.100Item 9B.Other Information.100Item 9C.Disclosure Regarding Foreign Jurisdictions that Prevent Inspectio

162、ns .100PART IIIItem 10.Directors,Executive Officers and Corporate Governance.101Item 11.Executive Compensation.101Item 12.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.101Item 13.Certain Relationships and Related Transactions,and Director Independence

163、.101Item 14.Principal Accountant Fees and Services.101PART IVItem 15.Exhibits and Financial Statement Schedules.101Item 16.Form 10-K Summary.103Signatures.104Business.Risk Factors.Unresolved Staff Comments.Properties.Legal Proceedings .Mine Safety Disclosures.Market for Registrants Common Equity,Rel

164、ated Stockholder Matters,and Issuer Purchases of Equity Securities.Reserved.Managements Discussion and Analysis of Financial Condition and Results of Operations.Quantitative and Qualitative Disclosures About Market Risk.Financial Statements and Supplementary Data.Changes in and Disagreements with Ac

165、countants on Accounting and Financial Disclosure.Controls and Procedures.Other Information.Disclosure Regarding Foreign Jurisdictions that Prevent Inspections .Directors,Executive Officers and Corporate Governance.Executive Compensation.Security Ownership of Certain Beneficial Owners and Management

166、and Related Stockholder Matters.Certain Relationships and Related Transactions,and Director Independence.Principal Accountant Fees and Services.Exhibits and Financial Statement Schedules.Form 10-K Summary.Item 1.Item 1A.Item 1B.Item 2.Item 3.Item 4.Item 5.Item 6.Item 7.Item 7A.Item 8.Item 9.Item 9A.

167、Item 9B.Item 9C.Item 10.Item 11.Item 12.Item 13.Item 14.Item 15.Item 16.Signatures.30300011031041This Annual Report on Form 10-K,including the“Managements Discussion and Analysis of Financial Condition and Results of Operations,”contains forward-looking st

168、atements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933,as amended(the“Securities Act”),and the Securities Exchange Act of 1934,as amended(the“Exchange Act”).All statements other than statements of historical facts are sta

169、tements that could be deemed forward-looking statements.These statements are based on current expectations,estimates,forecasts,and projections about the industries in which we operate and the beliefs and assumptions of our management.Words such as“expects,”“anticipates,”“targets,”“goals,”“projects,”

170、“intends,”“plans,”“believes,”“momentum,”“seeks,”“estimates,”“continues,”“endeavors,”“strives,”“may,”variations of such words,and similar expressions are intended to identify such forward-looking statements.In addition,any statements that refer to projections of our future financial performance,our a

171、nticipated growth and trends in our businesses,and other characterizations of future events or circumstances are forward-looking statements.Readers are cautioned that these forward-looking statements are only predictions and are subject to risks,uncertainties,and assumptions that are difficult to pr

172、edict,including those identified below,under“Item 1A.Risk Factors,”and elsewhere herein.Therefore,actual results may differ materially and adversely from those expressed in any forward-looking statements.We undertake no obligation to revise or update any forward-looking statements for any reason.PAR

173、T IItem 1.BusinessGeneralCisco designs and sells a broad range of technologies that power the Internet.We are integrating our product portfolios across networking,security,collaboration,applications and the cloud to create highly secure,intelligent platforms for our customers digital businesses.Thes

174、e platforms are designed to help our customers manage more users,devices and things connecting to their networks.This will enable us to provide customers with a highly secure,intelligent platform for their digital business.We conduct our business globally and manage our business by geography.Our bus

175、iness is organized into the following three geographic segments:Americas;Europe,Middle East,and Africa(EMEA);and Asia Pacific,Japan,and China(APJC).Our products and technologies are grouped into the following categories:Secure,Agile Networks;Internet for the Future;Collaboration;End-to-End Security;

176、Optimized Application Experiences;and Other Products.In addition to our product offerings,we provide a broad range of service offerings,including technical support services and advanced services.Increasingly,we are delivering our technologies through software and services.Our customers include busin

177、esses of all sizes,public institutions,governments,and service providers,including large webscale providers.These customers often look to us as a strategic partner to help them use information technology(IT)to differentiate themselves and drive positive business outcomes.We were incorporated in Cali

178、fornia in 1984 and reincorporated in Delaware in 2021.Our headquarters are in San Jose,California.The mailing address of our headquarters is 170 West Tasman Drive,San Jose,California 95134-1706,and our telephone number at that location is(408)526-4000.Our website is .Through a link on the Investor R

179、elations section of our website,we make available the following filings as soon as reasonably practicable after they are electronically filed with or furnished to the Securities and Exchange Commission(SEC)at sec.gov:our Annual Report on Form 10-K,Quarterly Reports on Form 10-Q,Current Reports on Fo

180、rm 8-K,and any amendments to those reports filed or furnished pursuant to Section 13(a)or 15(d)of the Exchange Act.All such filings are available free of charge.The information published on our website,or any other website referenced herein,is not incorporated into this report.Strategy and Prioritie

181、sAs our customers add billions of new connections to their enterprises,and as more applications move to a multicloud environment,the network becomes even more critical.Our customers are navigating change at an unprecedented pace.In this dynamic environment,we believe their priorities are to transfor

182、m infrastructure,secure the enterprise,power hybrid work,reimagine applications,and drive toward sustainability.Our strategy is to securely connect everything.We are committed to driving a trusted customer experience,through our innovation,solutions,choice,and people.2Customer PrioritiesTransform In

183、frastructureIn an increasingly digital and connected world,where each new connection to the Internet puts more demand on the network,our customers are looking to modernize and transform their infrastructure in an automated way in order to manage and monitor each connection in real time.Our strategy

184、to help our customers transform their infrastructure with the network at the core began with Software-Defined Access(SD-Access)technology,one of our leading enterprise architectures,and continued with the launch of our Catalyst 9000 series of switches.We have continued to transform our enterprise ac

185、cess portfolio by bringing together several technologies to form the only integrated architecture with built-in simplicity,automation and security at the foundation.This architecture is designed to enable our customers to securely connect their users and devices to applications and data over any net

186、work,no matter where they are.We have introduced several innovations that extend our networking capabilities to wireless and enterprise routing products,including Software-Defined Wide Area Network(SD-WAN)and Internet of Things(IoT)edge platforms.Our SD-WAN solutions are designed to provide direct b

187、ranch to cloud connectivity,enabling the workforce to access their software-as-a-service(SaaS)applications and workloads in an optimized and highly secure manner.We have continued to expand our SD-WAN offering,through our Cloud OnRamp integrations with several webscale providers to deliver predictab

188、le and highly secure application experiences.To further our innovation in this area,we are applying the latest technologies,such as machine learning and advanced analytics,to operate and enhance network capabilities.These network product offerings are designed to help enable customers to detect cybe

189、rsecurity threats,even in encrypted traffic.As such,we have created,in our view,the only network that is designed for security while also helping to maintain privacy.Our customers are operating in multicloud environments with private,public and hybrid clouds.For the data center,our strategy is to de

190、liver multicloud architectures that bring policy and operational consistency,regardless of where applications or data reside,by extending our Application Centric Infrastructure(ACI)and our hyperconverged offerings.We continue to invest in our data center portfolio to help meet the growing demand for

191、 cloud-delivered technologies.Our Nexus Cloud platform is designed to help our customers deploy,manage,and operate their data center networks from the cloud.Our technology strategy for the Internet for the Future is aimed at addressing the broad adoption of multicloud and application environments.We

192、 continue to make significant investments in the development of software,silicon and optics which we believe are the building blocks for the Internet for the Future.We introduced Cisco Silicon One,a single unified silicon architecture,as well as the Cisco 8000 carrier-class router family built on Ci

193、sco Silicon One and our operating system,Cisco IOS XR7.We have also expanded our Cisco Silicon One platform from a routing focused solution to one which addresses the webscale switching market.By combining our routed optical networking solution integrating our routers with pluggable optics,we can fu

194、rther help deliver cost savings to our customers.Secure the EnterpriseWith the rapid growth in modern applications,and with more distributed work environments,securing the enterprise has become more complex and difficult for our customers to manage.We believe every organization requires new or enhan

195、ced security architectures to defend against increasing cyber attacks.Our security strategy is focused on delivering a simple and effective cyber-security architecture combining network,cloud and endpoint-based solutions that recognizes the critical importance of data privacy.We are investing signif

196、icant resources across our security portfolio focused on cloud-based offerings,artificial intelligence-driven threat detection and end-to-end security architectures.We unveiled our strategic plan for a global,cloud-delivered,integrated platform that secures and connects organizations of any shape an

197、d size.Cisco Security Cloud is designed to be the most open,end-to-end,security platform across hybrid multi-cloud environments,while also minimizing the attack surface and automating security policies across an organizations environment.This extends to our secure access service edge(SASE)framework

198、and Zero Trust architecture,where we have developed a cloud-delivered stack.We are also delivering unified detection and response capabilities with Cisco Extended Detection and Response(XDR),a cloud-based solution,and introduced new innovations across firewall,multicloud and application security cap

199、abilities.To enable a more optimized hybrid work experience with simple access across any location,device,and application,we have brought to market a security service edge(SSE)solution.Additionally,we have announced generative AI capabilities as part of our Security Cloud platform to simplify securi

200、ty operations and increase efficiency.3Power Hybrid WorkOver the last several years,the world has shifted to a hybrid work environment,and we believe that our customers are looking to support a blend of onsite and offsite workers into the future.To enable a hybrid workforce,customers require secure

201、access,collaboration,and technologies to empower their teams to connect seamlessly and to work from anywhere.Customers are looking to us to help improve how their people communicate,collaborate and to increase productivity.At Cisco,we are focused on providing and delivering highly secure collaborati

202、on experiences to help our customers create a secure hybrid work environment.We believe our collaboration portfolio,which includes our subscription-based Webex conferencing platform,with meetings,devices,calling and messaging,is at the center of our customers strategy for enabling their teams to be

203、more productive and secure.To help our customers transform their workplaces,we continue to invest to expand our capabilities by introducing new Webex Calling innovations in the Webex Suite to improve work flexibility,reliability,and quality.We also launched new devices for hybrid work which we are m

204、aking interoperable with other vendors collaboration offerings to create a seamless user experience.Reimagine ApplicationsIn our view,over the next several years,customers will be increasingly writing modern software applications that can run on any hybrid cloud and will be adding billions of connec

205、tions to their environments.In a multicloud environment,customers must reimagine how they design,develop and deploy their applications.They need to be able to build applications quickly,deploy them nearly anywhere,monitor experiences,and act in real time.We believe we are uniquely positioned to enab

206、le successful business outcomes for customers in hybrid and multicloud environments.In our view,networks are increasingly critical to business success and we believe our customers will benefit from the insights and intelligence that we are making accessible through our highly differentiated platform

207、s.We are continuing our commitment to deliver full stack observability from the application to the infrastructure to give our customers greater insights that enable faster,better decision making.We are doing this by adding key elements to our portfolio,such as:infrastructure optimization with Inters

208、ight,network monitoring with technology from ThousandEyes,application performance monitoring with AppDynamics,as well as our security innovations.Journey to SustainabilityThe world faces serious environmental challenges,such as climate change,resource depletion,and biodiversity loss,and,as a large g

209、lobal corporation,Cisco can play a role in supporting mitigation of these challenges.Our strategy focuses on accelerating the transition to clean energy,evolving our business from linear to circular,and investing in resilient ecosystems.We are striving to reduce our own environmental footprint,and t

210、o use our technology and expertise to help our customers and suppliers reduce theirs,contributing to a healthier and more resilient planet.Additionally,we have set long-term goals to address the environmental impacts from our products and business operations.We strive to reduce the effects of our op

211、erations and supply chain,help our customers decrease greenhouse gas(GHG)emissions,and support our communities experiencing direct effects of a changing climate by,among others:Continuing to invest in renewable energy,including investments in solar and wind energy;Designing our products and packagin

212、g for reuse,repair,recycling,and resource efficiency and managing our equipment for multiple lifecycles;Continuing to standardize visibility and insights across our portfolio to enable customers to measure,monitor,and manage energy consumption;Investing in projects to improve the efficiency of our o

213、ffices,labs,and data centers worldwide;Working with our component suppliers,manufacturing partners,and logistic providers to reduce emissions and set goals for absolute GHG emissions reductions;Helping our employees to engage with events and opportunities to raise awareness and create a sense of com

214、munity around sustainability;and Providing critical connectivity in the aftermath of natural disasters.4Strategic PillarsTo execute on our strategy and address our customer priorities,we are focusing on the following six strategic pillars:Secure,Agile Networks Build networking solutions with built-i

215、n simplicity,security,agility and automation that can be consumed as-a-service.Optimized Application Experiences Enable greater speed,agility and scale of cloud-native applications.Hybrid Work Deliver highly secure access,a safer workplace and collaboration experiences for the hybrid workforce.Inter

216、net for the Future Transform connectivity by efficiently meeting the ever-growing demand for low-latency and higher speeds.End-to-End Security Build simple,integrated,and high efficacy end-to-end security solutions,delivered on-premise or in the cloud.Capabilities at the Edge Develop new capabilitie

217、s for a distributed world while enhancing the developer experience and extending enterprise and carrier networks.We are continuing to incorporate Artificial Intelligence(AI)and Machine Learning(ML)across our portfolio to enable further innovation and to empower our customers to drive increased produ

218、ctivity and better user experiences.We are investing in new opportunities in AI,launching new technologies across our product portfolios designed to boost productivity,enhance policy management and simplify tasks.Our AI-scale infrastructure will allow our customers to process AI workloads more effic

219、iently.We are also accelerating our efforts to enable the delivery of network functionality as a service as our customers increasingly want to consume technologies in flexible ways.We made the initial step with our as-a-service portfolio,Cisco Plus,and our first offer,Cisco Plus hybrid cloud,which c

220、ombines our data center compute,networking and storage portfolio.Cisco Plus includes our plans to deliver networking-as-a-service,which is designed to unify networking,security and observability across access,wide area network(WAN),and cloud domains.Transforming our Business ModelWe are transforming

221、 our offerings to meet the evolving needs of our customers.Historically,our various networking technology products have aligned with their respective product categories.However,increasingly our offerings are crossing multiple product categories.As our core networking offerings evolve,we expect we wi

222、ll add more common software features across our core networking platforms.We are increasing the amount of software offerings that we provide and the proportion of subscription software offerings.We have various software offerings that fall into the broad categories of subscription arrangements and p

223、erpetual licenses.Our subscription arrangements include term software licenses and associated service arrangements,as well as SaaS.As part of the transformation of our business,we continued to make strides to develop and sell more software and subscription-based offerings.We are also focused on the

224、entire customer lifecycle to drive expansion and renewals.We will continue to invest in network-as-a-service offerings to provide our customers with flexibility in how they want to consume our technologies.For a discussion of the risks associated with our strategy,see“Item 1A.Risk Factors,”including

225、 the risk factor entitled“We depend upon the development of new products and services,and enhancements to existing products and services,and if we fail to predict and respond to emerging technological trends and customers changing needs,our operating results and market share may suffer.”For informat

226、ion regarding sales of our major products and services,see Note 19 to the Consolidated Financial Statements.Products and ServicesOur products and services are grouped into the following categories:Secure,Agile NetworksSecure,Agile Networks consists of our core networking technologies of switching,en

227、terprise routing,wireless,and compute products.These technologies consist of both hardware and software offerings,including software licenses and SaaS,that help our customers build networks,automate,orchestrate,integrate,and digitize data.We believe it is critical for us to continue to deliver conti

228、nuous value to our customers.We continued to make progress in shifting more of our business to software and subscriptions across our core networking portfolio,and in expanding our software offerings.Our objective is to continue converging our on-premise solutions with our cloud managed solutions acr

229、oss our enterprise networking portfolio.5Our Switching portfolio encompasses campus switching as well as data center switching offerings.Our campus switching offerings provide the foundation for converged data,voice,video,and IoT services.These switches offer enhanced security and reliability and ar

230、e designed to scale efficiently as our customers grow.Within campus switching are our Catalyst 9000 series of switches that include hardware with embedded software,along with a software subscription referred to as Cisco DNA.Cisco DNA provides automation,analytics and security features and can be cen

231、trally monitored,managed,and configured.With the expansion of WiFi-6,we have expanded our portfolio to include multi-gigabit technology in our switches in order to manage higher bandwidth and manage network speed.Our data center switching offerings,led by the Nexus 9000 series,provide the foundation

232、 for mission critical data centers with high availability,scalability,and security across traditional data centers and private and public cloud data centers.We continue to add greater visibility and analytics across our networks and applications,enabling us to deliver better experiences for our cust

233、omers.Our Enterprise Routing portfolio interconnects public and private wireline and mobile networks,delivering highly secure and reliable connectivity to campus,data center and branch networks for our large to small enterprise and commercial customers.Our routing solutions are designed to meet the

234、scale,reliability,and security needs of our customers.Our Wireless portfolio provides indoor and outdoor wireless coverage designed for seamless roaming use of voice,video,and data applications.These products include wireless access points and controllers that are on-premise and cloud managed,and co

235、mbined with our Switching portfolio,delivers a converged access solution that is powerful,yet simple.Our Compute portfolio incorporates various technologies and solutions including the Cisco Unified Computing System,HyperFlex,our hyperconverged offering,and software management capabilities,which com

236、bine computing,networking,and storage infrastructure management and virtualization to deliver agility,simplicity,and scale.Internet for the FutureOur Internet for the Future product category consists of our routed optical networking,5G,silicon and optics solutions.We are focusing on transforming con

237、nectivity to the Internet and the cloud environment by efficiently meeting the growing demand for low-latency and higher speeds.Our routed optical networking systems,based on our Silicon One and pluggable optic solutions,allow us to transform the economics of building and operating networks for our

238、service provider customers,including our webscale customers.Our Cisco 8000 series routers provide broad capacity in high-density designs,allowing our customers to reduce operational footprints,lower carbon emissions,and evolve to more efficient network architectures.We believe silicon and optics are

239、 foundational technologies for the continued buildout of the Internet.As connection speeds increase,optics become increasingly important in our view.CollaborationOur Collaboration product category consists of our Meetings,Collaboration Devices,Calling,Contact Center and Communication Platform as a S

240、ervice(CPaaS)offerings.Our offerings within the Collaboration portfolio consist of software offerings,including perpetual licenses and subscription arrangements,as well as hardware.Our Collaboration strategy is to power hybrid work by reimagining employee and customer experiences to be more inclusiv

241、e and engaging by providing technology that enables distributed teams to collaborate effortlessly.We offer end-to-end collaboration solutions that can be delivered from the cloud,on-premise or within hybrid cloud environments allowing customers to transition their collaboration solutions from on-pre

242、mise to the cloud.Artificial intelligence and machine learning capabilities are embedded across the Webex portfolio,providing collaboration experiences that integrate people insights,relationship and audio intelligence to help improve productivity.Our CPaaS is a cloud communications platform that in

243、tegrates communication channels and existing back-end business systems together to help enable the orchestration and automation of all customer and employee interactions.End-to-End SecurityThe End-to-End Security product category consists of our Cloud and Application Security,Industrial Security,Net

244、work Security,and User and Device Security offerings.Security continues to be a leading priority for our customers,regardless of size or industry.We continue to invest in resources across our security portfolio focused on cloud-based offerings,AI-driven threat detection and end-to-end security archi

245、tectures.Additionally,we continue to invest in expanding our SASE architecture by delivering combined network and security functionality in a single cloud-native service.6Optimized Application ExperiencesThe Optimized Application Experiences product category consists of our full stack observability

246、and network assurance offerings.Our full stack observability offerings are designed to bring together and provide end-to-end visibility of our customers environments across applications,networks,multi-cloud infrastructures and the Internet,to help deliver full stack observability for modern environm

247、ents and drive relevant real-time insights.Our Intersight Infrastructure Services,a cloud-delivered SaaS offering,provides lifecycle operations management,automation,orchestration,and monitoring capabilities for customers infrastructure deployments from Data Center to the Edge.Our monitoring and ana

248、lytics offering,AppDynamics,monitors performance across different application-related domains.Our network assurance offering,ThousandEyes,is a network intelligence platform that provides in-depth visibility into network and Internet performance.It enables organizations to see,understand,and improve

249、every digital experience and assure seamless connectivity for their modern digital environments.ServicesIn addition to our product offerings,we provide a broad range of service and support options for our customers.Our overall service and support offerings are combined into one organization,Customer

250、 Experience,that is responsible for the end-to-end customer experience.Our support and maintenance services help our customers ensure their products operate efficiently,remain available,and benefit from the most up-to-date system and application software.These services help customers protect their n

251、etwork investments,manage risk,and minimize downtime for systems running mission-critical applications.We also provide comprehensive advisory services that are focused on responsive,preventive,and consultative support of our technologies for specific networking needs.We are investing in and expandin

252、g advisory services in the areas of software,cloud,security,and analytics,which reflects our strategy of selling customer outcomes.We are focused on three priorities:utilizing technology advisory services to drive higher product and services;assessment and migration services providing the tools,expe

253、rtise and methodologies to enable our customers to migrate to new technology platforms;and providing optimization services aligned with customers business expectations.Customers and Markets Many factors influence the IT,collaboration,and networking requirements of our customers.These include the siz

254、e of the organization,number and types of technology systems,geographic location,and business applications deployed throughout the customers network.Our customer base is not limited to any specific industry,geography,or market segment.Our customers primarily operate in the following markets:enterpri

255、se,commercial,service provider,and public sector.Enterprise Enterprise businesses are large regional,national,or global organizations with multiple locations or branch offices.Many enterprise businesses have unique IT,collaboration,and networking needs within a multivendor environment.We offer servi

256、ce and support packages,financing,and managed network services,primarily through our service provider partners.We sell these products through a network of third-party application and technology vendors and channel partners,as well as selling directly to these customers.CommercialThe commercial marke

257、t represents larger,or midmarket and small businesses.We sell to our midmarket customers through a combination of our direct sales force and channel partners.These customers typically require the latest advanced technologies that our enterprise customers demand,but with less complexity.Small busines

258、ses require information technologies and communications products that are easy to configure,install,and maintain.We sell to these smaller organizations within the commercial market primarily through channel partners.Service ProvidersService providers offer data,voice,video,and mobile/wireless servic

259、es to businesses,governments,utilities,and consumers worldwide.The service provider market includes regional,national,and international wireline carriers,webscale operators as well as Internet,cable,and wireless providers.We also include media,broadcast,and content providers within our service provi

260、der market,as the lines in the telecommunications industry continue to blur between traditional network-based,content-based and application-based services.Service providers use a variety of our products and services for their own networks.In addition,many service providers use Cisco data center,virt

261、ualization,and collaboration technologies to offer managed or Internet-based services to their business customers.Compared with other customers,service providers are more likely to require network design,deployment,and support services because of the greater scale and higher complexity of their netw

262、orks,whose requirements are addressed,we believe,by our architectural approach.7Public SectorThe public sector market includes federal,state and local governments,as well as educational institution customers.Many public sector customers have unique IT,collaboration,and networking needs within a mult

263、i-vendor environment.We sell to public sector customers through a network of third-party application and technology vendors,channel partners,as well as through direct sales.Sales Overview As of the end of fiscal 2023,our worldwide sales and marketing functions consisted of approximately 26,000 emplo

264、yees,including managers,sales representatives,and technical support personnel.We sell our products and services both directly and indirectly through a variety of channels with support from our salesforce.A substantial portion of our products and services is sold indirectly through channel partners,a

265、nd the remainder is sold through direct sales.Channel partners include systems integrators,service providers,other third-party resellers,and distributors.Systems integrators and service providers typically sell directly to end users and often provide system installation,technical support,professiona

266、l services,and other support services in addition to network equipment sales.Systems integrators also typically integrate our products into an overall solution.Some service providers are also systems integrators.Distributors may hold inventory and sell to systems integrators,service providers,and ot

267、her third-party resellers.We refer to sales through distributors as our two-tier system of sales to the end customer.Revenue from two-tier distributors is recognized based on a sell-in method.These distributors may be given business terms that allow them to return a limited portion of inventory,rece

268、ive credits for changes in selling prices,receive certain rebates,and participate in various cooperative marketing programs.For information regarding risks related to our sales channels,see“Item 1A.Risk Factors,”including the risk factors entitled“Disruption of or changes in our distribution model c

269、ould harm our sales and margins”and“Inventory management relating to our sales to our two-tier distribution channel is complex,and excess inventory may harm our gross margins.”For information regarding risks relating to our international operations,see“Item 1A.Risk Factors,”including the risk factor

270、s entitled“Our operating results may be adversely affected by unfavorable economic and market conditions and the uncertain geopolitical environment;”“Entrance into new or developing markets exposes us to additional competition and will likely increase demands on our service and support operations;”“

271、Due to the global nature of our operations,political or economic changes or other factors in a specific country or region could harm our operating results and financial condition;”“We are exposed to fluctuations in currency exchange rates that could negatively impact our financial results and cash f

272、lows;”and“Cyber attacks,data breaches or other incidents may disrupt our operations,harm our operating results and financial condition,and damage our reputation or otherwise materially harm our business;and cyber attacks,data breaches or other incidents on our customers or third-party providers netw

273、orks,or in cloud-based services provided to,by,or enabled by us,could result in claims of liability against us,give rise to legal and/or regulatory action,damage our reputation or otherwise materially harm our business,”among others.Our service offerings complement our products through a range of co

274、nsulting,technical,project,quality,and software maintenance services,including 24-hour online and telephone support through technical assistance centers.Financing ArrangementsWe provide financing arrangements for certain qualified customers to build,maintain,and upgrade their networks.We believe cus

275、tomer financing is a competitive advantage in obtaining business,particularly for those customers involved in significant infrastructure projects.Our financing arrangements include loans,leases(sales-type,direct financing and operating)and channels financing arrangements.Acquisitions,Investments,and

276、 AlliancesThe markets in which we compete require a wide variety of technologies,products,and capabilities.We continue to evaluate opportunities to acquire and invest in businesses and technologies that complement and enable further investment in our key priority areas.AcquisitionsWe acquire compani

277、es in order to gain access to talent,technology,products and features,operational capabilities or new markets.The risks associated with acquisitions are more fully discussed in“Item 1A.Risk Factors,”including the risk factor entitled“We have made and expect to continue to make acquisitions that coul

278、d disrupt our operations and harm our operating results.”8Investments in Privately Held CompaniesWe make investments in privately held companies that develop technology or provide services that are complementary to our products or that provide insights into emerging technologies that may become rele

279、vant to our businesses.The risks associated with these investments are more fully discussed in“Item 1A.Risk Factors,”including the risk factor entitled“We are exposed to fluctuations in the market values of our portfolio investments and in interest rates;impairment of our investments could harm our

280、earnings.”Strategic AlliancesWe pursue strategic alliances with other companies in areas where collaboration can produce industry advancement and accelerate new markets.The objectives and goals of a strategic alliance can include technology exchange,product development,joint sales and marketing,or n

281、ew market creation.Companies with which we have strategic alliances in some areas may be competitors in other areas,and in our view this trend may increase.The risks associated with our strategic alliances are more fully discussed in“Item 1A.Risk Factors,”including the risk factor entitled“If we do

282、not successfully manage our strategic alliances,we may not realize the expected benefits from such alliances and we may experience increased competition or delays in product development.”CompetitionWe compete in the networking and communications equipment markets,providing products and services desi

283、gned to transport,and help secure data,voice,and video traffic across cloud,private and public networks and the Internet.These market factors represent a competitive threat to us.We compete with numerous vendors in each product category.The overall number of our competitors providing niche product s

284、olutions may increase.Also,the identity and composition of competitors may change as we increase our activity in newer product areas,and in key priority and growth areas.As we continue to expand globally,we may see new competition in different geographic regions.In particular,we have experienced pri

285、ce-focused competition from competitors in Asia,especially from China,and we anticipate this will continue.Our competitors(in each case relative to only some of our products or services)include:Amazon Web Services LLC;Arista Networks,Inc.;Broadcom Inc.;Ciena Corporation;CrowdStrike Holdings,Inc.;Dat

286、adog Inc.;Dell Technologies Inc.;Dynatrace Inc.;Fortinet,Inc.;Hewlett-Packard Enterprise Company;Huawei Technologies Co.,Ltd.;Juniper Networks,Inc.;Microsoft Corporation;New Relic,Inc.;Nokia Corporation;Nvidia Corporation;Palo Alto Networks,Inc.;RingCentral,Inc.;VMware,Inc.;Zoom Video Communications

287、,Inc.;and Zscaler,Inc.;among others.Some of our competitors compete across many of our product lines,while others are primarily focused in a specific product area.Barriers to entry are relatively low,and new ventures to create products that do or could compete with our products are regularly formed.

288、In addition,some of our competitors may have greater resources,including technical and engineering resources,than we do.As we expand into new markets,we will face competition not only from our existing competitors but also from other competitors,including existing companies with strong technological

289、,marketing,and sales positions in those markets.We also sometimes face competition from resellers and distributors of our products.Companies with which we have strategic alliances in some areas may be competitors in other areas,and this trend may increase.For example,the enterprise data center is un

290、dergoing a fundamental transformation arising from the convergence of technologies,including computing,networking,storage,and software,that previously were segregated.Additionally,companies that are strategic alliance partners in some areas of our business may acquire or form alliances with our comp

291、etitors,thereby reducing their business with us.The principal competitive factors in the markets in which we presently compete and may compete in the future include the ability to sell successful business outcomes;the ability to provide a broad range of networking and communications products and ser

292、vices;product performance;price;the ability to introduce new products,including providing continuous new customer value and products with price-performance advantages;the ability to reduce production costs;the ability to provide value-added features such as security,reliability,and investment protec

293、tion;conformance to standards;market presence;the ability to provide financing;and disruptive technology shifts and new business models.We also face competition from customers to which we license or supply technology and suppliers from which we transfer technology.The inherent nature of networking r

294、equires interoperability.As such,we must cooperate and,at the same time,compete with many companies.Any inability to effectively manage these complicated relationships with customers,suppliers,and strategic alliance partners could have a material adverse effect on our business,operating results,and

295、financial condition and accordingly affect our chances of success.9Research and DevelopmentWe regularly introduce new products and features to address the requirements of our markets.We allocate our research and development budget among our product categories,which consist of Secure,Agile Networks;I

296、nternet for the Future;Collaboration;End-to-End Security;Optimized Application Experiences;and Other Product technologies.Our research and development expenditures are applied generally to all product areas,with specific areas of focus being identified from time to time.Our expenditures for research

297、 and development costs were expensed as incurred.The industry in which we compete is subject to rapid technological developments,evolving standards,changes in customer requirements,and new product introductions and enhancements.As a result,our success depends,in part,on our ability,on a cost-effecti

298、ve and timely basis,to continue to enhance our existing products and to develop and introduce new products that improve performance and reduce total cost of ownership.To achieve these objectives,our management and engineering personnel work with customers to identify and respond to customer needs,as

299、 well as with other innovators of Internet networking products,including universities,laboratories,and corporations.We also expect to continue to make acquisitions and strategic investments,where appropriate,to provide us with access to new technologies.Nonetheless,there can be no assurance that we

300、will be able to successfully develop products to address new customer requirements and technological changes or that those products will achieve market acceptance.ManufacturingWe rely on contract manufacturers for our manufacturing needs.We presently use a variety of independent third-party companie

301、s to provide services related to printed-circuit board assembly,in-circuit test,product repair,and product assembly.Proprietary software in electronically programmable memory chips is used to configure products that meet customer requirements and to maintain quality control and security.The manufact

302、uring process enables us to configure the hardware and software in unique combinations to meet a wide variety of individual customer requirements.The manufacturing process also uses automated testing equipment and burn-in procedures,as well as comprehensive inspection,testing,and statistical process

303、 controls,which are designed to help ensure the quality and reliability of our products.The manufacturing processes and procedures are generally certified to International Organization for Standardization 9001 standards.Our arrangements with contract manufacturers generally provide for quality,cost,

304、and delivery requirements,as well as manufacturing process terms,such as continuity of supply;inventory management;flexibility regarding capacity,quality,and cost management;oversight of manufacturing;and conditions for use of our intellectual property.We have not entered into any significant long-t

305、erm contracts with any manufacturing service provider.We generally have the option to renew arrangements on an as-needed basis.These arrangements generally do not commit us to purchase any particular amount or any quantities beyond amounts covered by orders or forecasts that we submit covering discr

306、ete periods of time.Patents,Intellectual Property,and LicensingWe seek to establish and maintain our proprietary rights in our technology and products through the use of patents,copyrights,trademarks,and trade secret laws.We have a program to file applications for and obtain patents,copyrights,and t

307、rademarks in the United States and in selected foreign countries where we believe filing for such protection is appropriate.We also seek to maintain our trade secrets and confidential information by nondisclosure policies and through the use of appropriate confidentiality agreements.We have obtained

308、 a substantial number of patents and trademarks in the United States and in other countries.There can be no assurance,however,that the rights obtained can be successfully enforced against infringing products in every jurisdiction.Although we believe the protection afforded by our patents,copyrights,

309、trademarks,and trade secrets has value,the rapidly changing technology in the networking industry and uncertainties in the legal process make our future success dependent primarily on the innovative skills,technological expertise,and management abilities of our employees rather than on the protectio

310、n afforded by patent,copyright,trademark,and trade secret laws.Many of our products are designed to include software or other intellectual property licensed from third parties.While it may be necessary in the future to seek or renew licenses relating to various aspects of our products,we believe,bas

311、ed upon past experience and standard industry practice,that such licenses generally could be obtained on commercially reasonable terms.Nonetheless,there can be no assurance that the necessary licenses would be available on acceptable terms,if at all.Our inability to obtain certain licenses or other

312、rights or to obtain such licenses or rights on favorable terms,or the need to engage in litigation regarding these matters,could have a material adverse effect on our business,operating results,and financial condition.Moreover,inclusion in our products of software or other intellectual property lice

313、nsed from third parties on a nonexclusive basis can limit our ability to protect our proprietary rights in our products.10The industry in which we compete is characterized by rapidly changing technology,a large number of patents,and frequent claims and related litigation regarding patent and other i

314、ntellectual property rights.There can be no assurance that our patents and other proprietary rights will not be challenged,invalidated,or circumvented;that others will not assert intellectual property rights to technologies that are relevant to us;or that our rights will give us a competitive advant

315、age.In addition,the laws of some foreign countries may not protect our proprietary rights to the same extent as the laws of the United States.The risks associated with patents and intellectual property are more fully discussed in“Item 1A.Risk Factors,”including the risk factors entitled“Our propriet

316、ary rights may prove difficult to enforce,”“We may be found to infringe on intellectual property rights of others,”and“We rely on the availability of third-party licenses.”Government RegulationWe are subject to numerous regulations and laws in the United States and abroad that involve matters centra

317、l to our business.Many of these regulations and laws are evolving and their applicability and scope,as interpreted by courts and regulators,remain uncertain.These regulations and laws involve a variety of matters including privacy,data protection and personal information,tax,trade,encryption technol

318、ogy,environmental sustainability(including climate change),human rights,product certification,and national security.A failure,or alleged failure,by us to comply with regulations or laws could have a material adverse effect on our business,operating results,or financial condition.For additional infor

319、mation about government regulation and laws applicable to our business,see“Item 1A.Risk Factors,”including the risk factor entitled“Our business,operating results and financial condition could be materially harmed by evolving regulatory uncertainty or obligations applicable to our products and servi

320、ces”and Note 14 to the Consolidated Financial Statements,subsection(f)“Legal Proceedings.”Talent and CultureAt Cisco,we value our people and our technology,and we leverage our broader ecosystems to positively impact the world and pursue our purpose to Power an Inclusive Future for All.Our goal is to

321、 attract,retain,and develop talent in order to help our customers connect,secure,and accelerate their digital agility.Our relationship with our employees is one of mutual benefit.Our employees bring talent and ingenuity to everything we do,and in turn,we provide employees with meaningful careers and

322、 development opportunities.For the third year in a row,Cisco has been named the number one company to work for in Fortune Magazines 100 Best Companies to Work For 2023 rankings in the United States.Fortune and Great Place to Work have published their United States rankings for the past 26 years,and

323、Cisco has been recognized on every annual list.Cisco has also received top ranking in 15 additional countries,including Australia,Canada,Costa Rica,Mexico,Norway,Poland,Portugal,Saudi Arabia,Singapore,Indonesia,Japan,Spain,Switzerland,United Kingdom,and Vietnam.As of July 29,2023,we had approximatel

324、y 84,900 employees and they are categorized as follows:Employees by GeographyEmployee by Line Items on Consolidated Statement of OperationsUnited States47.6%Rest of World52.4%Cost ofsales31.5%Sales andmarketing30.4%Research anddevelopment28.0%General andadministrative10.1%We support our employees th

325、rough times of change and enable them to be their best.We do this by fostering a Conscious Culture.Conscious Culture speaks to the importance of everyone being aware “conscious”of the environment they are part of,and feeling accountable,empowered,and expected to contribute to creating a culture wher

326、e all Cisco employees feel safe and can thrive.Were aware of how we treat one another and speak up when we see behavior thats out of step with our beliefs.There is a direct connection between the culture we create internally and how our people are helping bring about a better world.11In the same way

327、 that every employee at Cisco is responsible for our Conscious Culture,we also want every employee to feel responsible for and contribute to our purpose to Power an Inclusive Future for All.This is as much a commitment from Cisco as it is from our employees.Our people often ask the toughest question

328、s around how we are impacting society for the better,from addressing homelessness to combating climate change.And often the best ideas for how we can do even more come directly from them.Future employees expect it too.More and more,talent want to work for a company where their work has meaning and w

329、here they see their values reflected in the organization.Inclusion&DiversityInclusion and diversity are core components in our Conscious Culture.Inclusivity is our strength and our priority.We want every employee to feel valued,respected,and heard.We are prioritizing inclusion and diversity across t

330、he company,recognizing that connecting people of all experiences and backgrounds allows us to improve innovation and collaboration.In order to continue accelerating diversity and finding extraordinary talent,we have designed a framework that includes introducing new tools and technologies to help ac

331、curately map the talent market,creating job roles that attract highly qualified diverse candidates,and expanding the diversity within our interview panels.We currently have a total of 29 Inclusive Communities comprised of 11 Employee Resource Organizations and 18 Employee Networks supporting full-sp

332、ectrum diversity globally,including gender,ethnicity,race,sexual orientation,age,ability,veteran status,religion,culture,background,as well as varied experiences,strengths,and perspectives.These thriving communities continue to be a source of strength and support for employees,and they help to foste

333、r a more conscious culture by providing opportunities for proximity and learning.Cisco has signed the CEO Action for Diversity and Inclusion Pledge.The CEO Action for Diversity&Inclusion Pledge is a CEO-driven pledge to drive measurable action and meaningful change in advancing diversity,equity and inclusion in the workplace.This year,Cisco also signed The Valuable 500 statement,a global movement