Cisco's plans were first reported by The Wall Street Journal.
Enterprise hardware spending is dwindling across the globe as companies cope with shrinking budgets, slowing or uncertain economies and a fundamental migration to cloud computing, which reduces demand for equipment by outsourcing data management and computing needs.
Microsoft last year said it was cutting prices for hosting and processing customers' online data in an aggressive challenge to Amazon's lead in the growing business of cloud computing.
Shares of Cisco, which closed at $21.64 on Friday on the Nasdaq, were up 0.28 percent at $21.70 in pre-market trading on Monday. (Click here for the latest quote.)
(Read more: Cisco tops earnings expectations, boosts dividend)