Editor’s note: Analysis: Secure, scalable intelligent networks light the path as Cisco works to reconstruct its reputation as a trusted advisor of the connected world, but what impact will new CEO Chuck Robbins have when he takes over from John Chambers? Elitsa Bakalova, Senior Analyst at technology Business research, offers her insight.

HAMPTON, N.H. – New leadership will not change Cisco’s (Nasdaq: CSCO) direction or culture, as the company continues to drive integrated services in its evolution from a product- to services-led advisory partner; Cisco announces that the biggest change from its new CEO would be an accelerated pace of innovation

In its most recent earnings report last week, Cisco’s revenue grew 5% year-to-year in 1Q15 to $12.1 billion, contracting sequentially in what seems to be a trend in the first quarter of its calendar year. Cisco Services revenue increased for the 48th consecutive quarter to $2.8 billion. Expectations on the confluence of digital transformation projects and the integration of security architecture across intelligent networks will continue to contribute to revenue growth.

The company reportedly has 1,200 digital projects and increased its pipeline to 540 engagements during the quarter, resulting in a reported $950 million in opportunities for transformational projects. Cisco Services’ estimated operating margin was 38.5%, down from 40.8% in 1Q14, attributed to ramped up sales activities and investments in top-tier consultants to help the company convert its pipeline into bottom-line revenue.

Cisco leverages its strong cash position to acquire intellectual property for expanding its product portfolio, while adding consulting capabilities to help Cisco integrate managed services. Product revenue experienced 6% growth in switches, which Cisco attributes to digital transformation conversations coming full circle to encompass slices of cloud, mobile, security, and collaboration solutions and managed services, leading to necessary switch upgrades. Cisco reported order growth of 21% in 1Q15 for the enterprise segment, and the company projects corporate revenue growth for 2Q15 to be in the range of 1% to 3% as it continues to deeply embed advisory expertise into the operations of clients, serving as a trusted partner to some rather than servers of everyone.

TBR expects services to continue its upward trajectory to leading corporate revenue growth in the upcoming quarter. The company’s deferred revenue streams will continue to increase as Cisco emphasizes a shift to repeatable revenue and multiyear contracts, evidenced by the jump from $8.7 billion in fiscal 3Q14 to $9.2 billion in 3Q14.

Chuck Robbins, Cisco’s next CEO, plans to run Cisco with a higher level of ‘operational vigor’ than his predecessor John Chambers

After a 16-month selection process, on May 4 Cisco announced senior vice president of Worldwide Field Operations Chuck Robbins will become the new Cisco CEO, effective July 26, 2015. Robbins will be tasked to oversee Cisco’s transition from a hardware company to an IT solutions provider. Cisco decided to promote from within and appoint a leader with a deep understanding of the company’s roots, value proposition strategy and channel partners, where the company conducts a major portion of its business. Robbins promotion is a low-risk move that enables Cisco to stabilize its leadership team quickly with a company veteran as Robbins has been with Cisco since 1997.

Expanded presence through IoE Innovation Centers improves Cisco’s ability to provide integrated solutions that address needs of local industries and capture growth opportunities

According to Cisco’s estimates, 50 billion devices and objects will be connected to the Internet by 2020, pushing the company to develop its Internet of Things (IoT) capabilities. Cisco’s networking expertise and ability to combine IoT products, services and industry-specialized solutions will help the company capture growth opportunities. Cisco has developed a set of services that help clients plan, build and manage solutions that help clients generate business benefits by connecting people, processes, data and things on the Internet (or Internet of Everything in Cisco’s terms). For example, Cisco helps clients transform their operational networks through strategy and architecture assessment, network architecture design, deployment assistance, and technical support. The Cisco Consulting Services IoE practice works with clients in developing a comprehensive IoE strategy, its consultants address clients’ needs related to cloud, analytics and mobility and works with business partners to build and manage the solutions. Cisco is increasing its activities from its nine IoE Innovation Centers across the globe, which showcase and develop IoE innovation. Cisco opened its latest center in Australia, while its center in Berlin, which launched in 3Q14, released its first asset management solution monitors and controls distributed infrastructure over the Internet. Cisco is not alone in the segment and competitors, such as IBM, which is investing $3 billion over four years to create transformational IoT solutions for commercial clients integrating network, software, hardware and services components will challenge Cisco’s expansion.

Cisco integrates security services and products to address clients’ cybersecurity needs with comprehensive solutions

Cisco Services is ramping up its security services capabilities organically and through acquisitions to address clients’ rising concerns from cyberattacks and support adoption of disruptive technologies, such as cloud, mobility, and big data and analytics. Cisco integrates its security services, such as the Managed Security and Migration Services and the Security Incident Response Services, with related security products, such as the Cisco Advanced Malware Protection portfolio, to provide clients with solutions to monitor and manage external threats and have cybersecurity readiness and respond to cyberattacks. Cisco’s expansion of its security-related consulting services through the acquisition in 1Q15 of Neohapsis, a security services and advisory company, is a prudent move that enables the company to differentiate with integrated solutions and compete for deals with IBM and Accenture both of which have established security consulting expertise.

(C) TBR