Cisco Chief Partner Officer Jeff Sharritts Leaving Company

Cisco chief customer officer and partner officer Jeff Sharritts is leaving the IT giant after nearly 24 years at the company.

Cisco in its latest earnings noted that Sharritts is departing. Gary Steele, formerly Splunk's CEO, while replace Sharritts.

Steele is taking on the new role of president of go-to-market.

Cisco's Jeff Sharritts

"Gary is well-known for his operational excellence, and in this new role he will work closely with me to set and execute against our goals for the company," Cisco CEO and chair Chuck Robbins told investors.

Cisco's Gary Steele

Steele will continue to lead the integration of Splunk into Cisco. He previously held the title of executive vice president and general manager of Cisco at Splunk.

Jeff Sharritts Leaving

Robbins didn't say where Sharritts will go next. He will remain with the company until mid-July. Prior to being chief customer and partner officer, Sharritts led Cisco's Americas sales.

The CEO thanked Sharritts for "all he's helped Cisco achieved" over the last 20 years.

The company has seen quite a bit of change in its partner executives. Rodney Clark recently stepped in to lead global partner efforts, succeeding Oliver Tuszik.

Cisco Subscription Revenue Up

Cisco in its latest earnings saw subscription revenue rise to 54% of its total revenue, thanks in part to the acquisition of Splunk and a wider shift to opex software in the company. Total software revenue for the quarter was $6.9 billion.

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However, overall Cisco revenue fell 13% year-over-year to $12.7 billion for its fiscal year third quarter, which ended April 27. The vendor cited "customers' continued implementation of products on-hand."Techaisle chief global analyst Anurag Agrawal said the quarter was a positive sign for Cisco's effort to drive more recurring revenue. Agrawal noted that in addition to increased subscription revenue, Cisco saw an increase in service revenue (6%).

"Service revenue showed a slight increase. This suggests that Cisco's efforts to expand its recurring revenue streams are bearing fruit. Customers are increasingly opting for ongoing services alongside hardware purchases, which can provide a more stable income source," Agrawal said.

But Agrawal said that while Cisco's transformation of its business model is seeing traction, the market does not appear to recognize its "full potential."

"This represents a significant shift from their traditional hardware-centric model and signifies a successful transition toward recurring revenue streams. The total ARR of $29.2 billion showcases the impressive growth in recurring revenue. This sustained increase indicates a strong customer base committed to Cisco's subscription offerings," Agrawal told Channel Futures. "Despite these positive developments, the market doesn't seem to be fully recognizing the value proposition. This could be due to a lack of clear communication from Cisco regarding the long-term benefits of its transformation."

Cisco retained its guidance despite the revenue decline.