In an interview with The Wall Street Journal, Cisco CEO John Chambers says that he wants to build his router company into a force in the consumer electronics field. That is probably not a good idea.
Chambers reasons that his router business will continue to grow at low double digits for several years. Mostly driven by supplying telecom and cable companies with infrastructure, Cisco made $2.2 billion in its last reported quarter on revenue of $8.9 billion.
But, the company does own the Linksys WiFi product and the Scientific Atlanta set-top business. It hopes to re-brand these with the Cisco name. This would put the company up against the largest set-top provider, Motorola's General Instruments division. It would also put Cisco into the home networking business that has chewed up and spit out companies from Microsoft and Intel. Dozens of companies are trying to make money as the hub of home entertainment and connectivity.
It would be a long and very hard war for Cisco. It should stick to its knitting.
Showing posts with label Cisco CEO. Show all posts
Showing posts with label Cisco CEO. Show all posts
Tuesday, August 7, 2007
Tuesday, June 19, 2007
Network Traffic To Grow Up To Six-Fold Annually
The increased use of video and further online collaboration will drive network traffic to an annual growth rate of between 300% and 500% over the next several years, said Cisco Systems Inc. Chairman and Chief Executive John Chambers, who added this is beyond most expectations.
"It's the second phase of the Internet - it will be about collaboration," Chambers said during a keynote address at the NXTcomm telecommunications industry trade show on Tuesday.
Cisco supplies the switching network equipment for government, corporate and carrier customers. But Chambers said he believes the next phase of growth will come from layering services through that network. The executive touted the combination of different services like video and music integrated into various environments such as the car, mobile handset or home.
"It won't be about transport, it'll be about the changing business model," he said, adding that the consumer is now driving demand for new services.
Other services include the expanded use of telepresence, a high-end video conferencing product that many companies are offering.
Touting the increased productivity of collaboration, he cited Cisco's own acquisition history. In November 2005, Cisco closed the acquisition of television cable set-top box maker Scientific Atlanta in 45 days. The company took eight days to close the acquisition of WebEx earlier this year.
On net neutrality, Chambers said he is more concerned with building out the network and considers dividing up the lines and speeds a second priority.
"It's the second phase of the Internet - it will be about collaboration," Chambers said during a keynote address at the NXTcomm telecommunications industry trade show on Tuesday.
Cisco supplies the switching network equipment for government, corporate and carrier customers. But Chambers said he believes the next phase of growth will come from layering services through that network. The executive touted the combination of different services like video and music integrated into various environments such as the car, mobile handset or home.
"It won't be about transport, it'll be about the changing business model," he said, adding that the consumer is now driving demand for new services.
Other services include the expanded use of telepresence, a high-end video conferencing product that many companies are offering.
Touting the increased productivity of collaboration, he cited Cisco's own acquisition history. In November 2005, Cisco closed the acquisition of television cable set-top box maker Scientific Atlanta in 45 days. The company took eight days to close the acquisition of WebEx earlier this year.
On net neutrality, Chambers said he is more concerned with building out the network and considers dividing up the lines and speeds a second priority.
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