Cisco Systems Sub-Saharan Africa (SSA) says the second quarter to 29 January was the best in US dollar terms in the office`s nine-year history.
Describing the quarter as an exceptional period for the regional office, Cisco SSA`s GM, Mokati Ramphele, says growth of 20% was achieved compared with the same quarter a year before.
Out of the three business segments - midmarket, small to medium enterprise and small office/home office - the service provider segment was the best performer, he says.
"The general deregulation of the market has created a vibe in the market and has unleashed huge potential. ISPs (Internet service providers) and Telkom are actively looking to boost their performance by installing reliable networks.
"This growth has been closely followed by the public sector. We are seeing good growth in spending as government increasingly apportions a percentage of its capital expenditure on enabling technology that will support connectivity."
Growth is driven by demand for routing, switching and advanced technologies, he adds.
Nasdaq-listed Cisco yesterday reported net sales of $6.1 billion for the quarter, a 12.3% increase when compared with the same quarter a year earlier.
Net income of $1.4 billion, or $0.21 a share was 93% up on the $724 million or $0.10 a share previously.
The year-earlier figure was lessened by $567 million as the result of an accounting change.
Ramphele says he expects to see more capital expenditure in the next six months as governments and service providers in the region build up their networks. Over the next 18 to 36 months, operational expenditure will increase as the market seeks to boost efficiencies and effectiveness.
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