Software Is The New HardwareCisco started its fiscal 2013 just as it ended 2012, with another earnings beat. The network giant reported net income of $2.6 billion, or 48 cents per share on revenue of $11.9 billion. Not only was this enough to beat analysts' estimates of 46 cents per share, but the results also represented 11% profit growth. Likewise, revenue also grew by 6% and exceeded street expectations of $11.77 billion. Cisco continues to see excellent improvement in its services business with revenue growing year-over-year by 12%. Some of the company's largest customers have contributed to the growing demand as evident by the 9% increase in orders. On the other hand Europe continues to be a challenge. Likewise, Cisco's routing and switching business continues to underperform. So what does it do? However, as has been the case for most of the year, Cisco has provided an answer to its hardware weakness by opening its wallet. The company's recent shopping spree includes spending $1.2 billion for Meraki and most recently $141 million in cash for Cariden -- both within the past two weeks. This brings Cisco's software acquisitions total to nine. Essentially, Cisco is looking to leverage its strong services business, which grew by 12% with more cloud-based purchases. The question is, will it be enough to offset its lagging hardware business. But more importantly, it may not even matter. Once enterprises start migrating fully into the cloud, software will become "the new hardware." That Cisco has been investing heavily in this direction is not a surprise -- particularly since that market is projected to grow to $177 billion by 2015. In the meantime, the company is looking for any type of competitive advantage. Still, Cisco doesn't think that it has done enough.