Reductions in Cisco’s growth plans have impacted through the Cloud services market as the technology sector reacts to comments from CEO John Chambers. Chambers downgraded revenue growth expectations to between two and five percent , this comes after Cisco had previously revised growth expectations from 12 to 17 percent to 5 and 7.

Cisco is a major provider of the key components of Cloud services and the announcement saw concern from Cloud businesses as more than 70 percent of Cloud providers currently use Cisco technology in providing services.

Chambers commented “We continue to see the impact of the areas of concern we have discussed for the last few quarters,-Those were Europe and the global economy, public sector, India and conservative IT spend as reflected in the commentary of our peers. Each of these areas has proven to be a challenge as we anticipated, and several, Europe and customer conservatism, have gotten worse."