Cisco Systems (NASDAQ:CSCO) predicts that the Internet of Things will result in trillions of dollars in economic impact during the next few years. But how will this hardware titan shift its focus in the age of software?

The company plans to approach it with volume, claiming it has more than 700 new products in the works. But, many of those products are simply derivations of existing ones -- ruggedized equipment marketed to industries like oil and gas that are embracing the Internet of Things. The billion-dollar question surrounding Cisco is whether incremental gains from the Internet of Things could outweigh other challenges to its business, such as companies embracing software-defined networking, a trend that could crimp Cisco's profits and overall profitability. 

Fresh from their trip to San Francisco and Silicon Valley, Motley Fool tech bureau chief Max Macaluso and senior tech analyst Eric Bleeker discuss threats to Cisco's business model and its potential future in the video below. 

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Eric Bleeker, CFA owns shares of Cisco Systems. Max Macaluso, Ph.D. has no position in any stocks mentioned. The Motley Fool recommends Cisco Systems. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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