Cisco’s most lucrative product segment is switching, which accounted for revenue of over 13.9 billion U.S. dollars in 2017, almost 30 percent of the company’s total product revenue. Switching involves grouping transmitted data, regardless of content or type, into suitable blocks called packets. These packets of data can then be shared among users on a network. Cisco is the global market leader in Ethernet switches, with an industry share of about 55 percent in the first quarter of 2017. Its closest competitor, Hewlett Packard Enterprise (HPE), had a share of just 6.3 percent. This market generated revenues for Cisco of 13.9 billion U.S. dollars in 2016, almost 30 percent of the company’s total revenue in that year.
Cisco is also the fifth largest vendor of servers in the world based on revenue, with the company’s revenue in this market surpassing 800 million U.S. dollars in the first quarter of 2017. However, in terms of server units shipped, Cisco has fallen out of the top five. For quarters where figures are available for Cisco's unit shipments, they have shipped around 80,000 units of servers. In terms of revenues, Cisco held a market share of 7 percent for the first quarter of 2017. HPE and Dell are the leading vendors in this market, and together they hold a market share of more than 40 percent.