Tomahawk, WI 12/02/2013 (BasicsMedia) – Cisco Systems, Inc. (NASDAQ:CSCO) is known as the global networking giant providing the best technology in the sector. But its networking business– switches and routers sales – has been coming under increasing pressure in the emerging markets. This comes as competition erect strongly against it in key markets like China.

The domestic firms in the world’s fastest growing economy are quickly turning tables on the U.S. networking giant. In its recent quarter reporting, Cisco admitted challenge in China and forecast down this quarter’s revenue. The company said that while it was doing all that was possible to continue making profits, the challenge in China was enormous. At some point the company’s CEO John Chambers hinted at the alleged U.S. National Security Agency spying as hampering Cisco Systems, Inc. (NASDAQ:CSCO)’s business in China.

The widespread allegations that NSA was using U.S. made networking infrastructure to infiltrate systems for doping reasons has strained the business environment for Cisco Systems, Inc. (NASDAQ:CSCO) and most U.S. networking solutions companies in China. However, as the door of opportunity in China shuts or seems to, Africa is one emerging market that Cisco is seeing wonderful opportunities, more so in the cloud computing services.

Business cloud consumption promising

If the recent finding about the corporate computing practice in Africa is anything to go by, it looks like Cisco Systems, Inc. (NASDAQ:CSCO)’s future is bright in Africa. A study by World WideWorx says that major economies in Africa are gaining confidence in the cloud computing services, an area that CSCO is tapping into to bolster its revenue and bottom line.

The study focused on three technology giants in Africa namely South Africa, Kenya and Nigeria. The first two markets are already at advanced stages in corporate cloud services consumption, but Nigeria is the most promising. Now at 36% of Nigeria’s medium and large businesses using cloud technology, the study reveals that more executives in the country are willing to go the cloud way, putting the future adoption of the system in the country at about 80%.

Currently 50% of South African businesses in the category of medium and large businesses are using cloud services. In Kenya the number is about 48%. Looking into the future, 24% of Kenyan IT decision-makers say they would shift to cloud by end of 2014 while 16% of South Africa answers the same.

Cisco riding on good reputation in Africa

Cisco Systems, Inc. (NASDAQ:CSCO) already has a good reputation among business entities in Africa due to its cutting-edge networking solutions. The company is banking on this good name plus its innovative edge to penetrate the African cloud services market. Given the mix response from the study where some businesses prefer private, others hybrid and others still feeling secure with public cloud, CSCO now has to calculate how best to squeeze the juice from these different segments in cloud services.

The cloud services market is still largely untapped as various studies have put it at multitrillion dollar value. This means that Cisco Systems, Inc. (NASDAQ:CSCO) can realize significant revenue from the market by just tapping a fraction of this market.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.