Cisco Systems Inc wants to add more sophisticated voice-recognition technology to its products aimed at helping office workers communicate more flexibly, a senior executive said on Thursday.
Barry O'Sullivan, head of Cisco's Voice Technology Group, told Reuters he was not sure if the network equipment maker would develop such technology internally or through partnerships or acquisitions.
He said improved voice technology could be added to Cisco's "unified communications" products, which tie together e-mail, phones and other tools such as instant messaging and video conferencing.
"We'd like to be able to do things like search for stored conference calls, and intelligent tagging of voice," O'Sullivan said in a telephone interview.
An increasing number of companies are offering "unified communications" products. Cisco both competes and partners with companies like Microsoft Corp (MSFT.O: Quote, Profile, Research) and IBM (IBM.N: Quote, Profile, Research) in this business.
O'Sullivan said the company would continue to work with others to ensure customers have access to various software and equipment, but relationships among the various players were likely to change over time.
"There's a $30 billion market opportunity out there. We're all circling around it with different strengths and we all want a piece of the pie," he said.
Showing posts with label Cisco strategy. Show all posts
Showing posts with label Cisco strategy. Show all posts
Tuesday, October 9, 2007
Wednesday, October 3, 2007
Cisco Acquires Latigent
Cisco will have Web 2.0-based reporting systems added to its contact centre systems as a result of the new acquisition of Latigent.
Latigent is a top provider of web-based business intelligence and analytics reporting solutions.
Its products take advantage of Web 2.0 principles that help customers to create scalable, flexible and easy customisable real-time reports for contact centres.
The deal will see Latigent's products work with Cisco's Unified Customer Contact solutions.
Laurent Philonenko, vice president and general manager of the Customer Contact Business Unit at Cisco, said: "By acquiring Latigent, Cisco is signalling a commitment to increase the value of customer investments in our customer interaction solutions by providing appealing, robust and dynamic tools to enable increased visibility and efficiency."
News brought to you by Comms Express, number one for switches on the net.
Latigent is a top provider of web-based business intelligence and analytics reporting solutions.
Its products take advantage of Web 2.0 principles that help customers to create scalable, flexible and easy customisable real-time reports for contact centres.
The deal will see Latigent's products work with Cisco's Unified Customer Contact solutions.
Laurent Philonenko, vice president and general manager of the Customer Contact Business Unit at Cisco, said: "By acquiring Latigent, Cisco is signalling a commitment to increase the value of customer investments in our customer interaction solutions by providing appealing, robust and dynamic tools to enable increased visibility and efficiency."
News brought to you by Comms Express, number one for switches on the net.
Cisco may buy WiMax Player
Cisco Systems Inc. is close to buying a company that makes WiMax base stations, according to an industry report. The move would be Cisco's first foray into the wireless technology.
Cisco, by far the largest networking equipment maker, would not comment on the report, but a spokesman did refer to Cisco's online position paper on WiMax. While the paper notes that "WiMax will be one of several high-speed wireless WAN technologies seeing broad deployment," it adds, "Cisco has no current plans to build WiMax base stations or base stations using any other WAN radio access technology."
The paper notes that Cisco will work with partners and also provide IP technology for next-generation base stations, while its partners will provide the radio components. Also, Cisco plans to provide IP infrastructure to network the base stations together, the paper says.
The wireless news Web site Unstrung reported that two unnamed industry sources said the purchase could take place in a matter of weeks and that Cisco had narrowed down the potential list of targets to four companies: Alvarion Ltd., Aperto Networks Inc., Navini Networks Inc. and Redline Communications Inc.
Craig Mathias, an industry analyst at The Farpoint Group and a Computerworld columnist, said that it makes sense -- but it's "not essential" -- for Cisco to be involved more directly in WiMax. He said any of the four companies being named would be solid choices. Mathias said he had not heard any rumors, however.
"Every company is on Cisco's list to buy all the time," he noted. "They buy according to what's going to provide the biggest return on investment."
Last month, Cisco announced plans to buy Cognio Inc. in order to acquire its wireless network management technology. That would be Cisco's first acquisition of its current fiscal year but its 122d purchase overall.
Cisco, by far the largest networking equipment maker, would not comment on the report, but a spokesman did refer to Cisco's online position paper on WiMax. While the paper notes that "WiMax will be one of several high-speed wireless WAN technologies seeing broad deployment," it adds, "Cisco has no current plans to build WiMax base stations or base stations using any other WAN radio access technology."
The paper notes that Cisco will work with partners and also provide IP technology for next-generation base stations, while its partners will provide the radio components. Also, Cisco plans to provide IP infrastructure to network the base stations together, the paper says.
The wireless news Web site Unstrung reported that two unnamed industry sources said the purchase could take place in a matter of weeks and that Cisco had narrowed down the potential list of targets to four companies: Alvarion Ltd., Aperto Networks Inc., Navini Networks Inc. and Redline Communications Inc.
Craig Mathias, an industry analyst at The Farpoint Group and a Computerworld columnist, said that it makes sense -- but it's "not essential" -- for Cisco to be involved more directly in WiMax. He said any of the four companies being named would be solid choices. Mathias said he had not heard any rumors, however.
"Every company is on Cisco's list to buy all the time," he noted. "They buy according to what's going to provide the biggest return on investment."
Last month, Cisco announced plans to buy Cognio Inc. in order to acquire its wireless network management technology. That would be Cisco's first acquisition of its current fiscal year but its 122d purchase overall.
Monday, September 24, 2007
Cisco sees security spend surge 20
Security spending is expected to increase by 20 per cent across the globe, including India, due to the increase in usage of wireless and mobile connectivity among employees, says a survey by network solutions provider Cisco.
In India, almost 36 per cent of the respondents predict the increase in security spending to be between 10 and 20 per cent.
The latest research builds on findings released earlier this month, which highlighted the growing trend of mobile employees and the heightened risks for businesses as they connect to corporate networks and carry sensitive information outside office walls.
While the previous survey involved more than 700 mobile employees in seven countries, where wireless and mobility technologies are widely adopted, the additional findings reveal spending plans and business drivers for over 700 IT decision makers, who work in those same nations: the United States, the United Kingdom, Germany, China, India, South Korea and Singapore.
“These figures are significant because a 20 per cent increase in spending on security alone could represent hundreds of thousands to millions of dollars for mid-size and large enterprises,” said Jeff Platon, vice-president of security solutions for Cisco.
Virus containment was the single-largest issue that Chief Information Officers (CIOs) in India found among wireless devices over the past year. A third of respondents in both India and China feel that security incidents will increase in the next year. In India, 41 per cent of respondents are focusing on wireless security, while 42 per cent are focusing on both wired and wireless security.
Almost two-thirds (63 per cent) of IT respondents say more employees are being enabled to work anywhere, anytime with laptops, smart phones, or both.
Germany (74 per cent) leads the pack, followed by China and India (69 per cent), South Korea (66 per cent) and the United States (58 per cent).
Education and awareness among users will be key to the success of any security policy. Many mobile users in the survey say they aren’t always aware of security concerns, and their actions provide proof.
Throughout the seven countries, many mobile employees say they access unauthorised wireless networks in public places and in their neighbourhoods.
Many say they don’t encrypt data on their wireless devices or set passwords to prevent physical access to their information.
And, inevitably, some mobile users lose their devices or are victims of theft.
However, more than half agree that regulatory compliance initiatives are driving attention to wireless security. The countries where this is the biggest driver are India, Singapore and China.
Ben Gibson, Cisco’s director of mobility solutions, said: “The research really provides an opportunity for IT to reassess its relationship with increasingly mobile user bases and consider new ways to minimise spending. If you look at it from all angles — compliance, policies, business needs and human behaviour — technology is only half of the equation. Proactive communication, education and engagement of employees on safe, appropriate online behaviour, especially when they are mobile and remote, can help to ensure solid returns on strategic IT investments that bring the promise of a secure, mobile wireless business to life.”
In India, almost 36 per cent of the respondents predict the increase in security spending to be between 10 and 20 per cent.
The latest research builds on findings released earlier this month, which highlighted the growing trend of mobile employees and the heightened risks for businesses as they connect to corporate networks and carry sensitive information outside office walls.
While the previous survey involved more than 700 mobile employees in seven countries, where wireless and mobility technologies are widely adopted, the additional findings reveal spending plans and business drivers for over 700 IT decision makers, who work in those same nations: the United States, the United Kingdom, Germany, China, India, South Korea and Singapore.
“These figures are significant because a 20 per cent increase in spending on security alone could represent hundreds of thousands to millions of dollars for mid-size and large enterprises,” said Jeff Platon, vice-president of security solutions for Cisco.
Virus containment was the single-largest issue that Chief Information Officers (CIOs) in India found among wireless devices over the past year. A third of respondents in both India and China feel that security incidents will increase in the next year. In India, 41 per cent of respondents are focusing on wireless security, while 42 per cent are focusing on both wired and wireless security.
Almost two-thirds (63 per cent) of IT respondents say more employees are being enabled to work anywhere, anytime with laptops, smart phones, or both.
Germany (74 per cent) leads the pack, followed by China and India (69 per cent), South Korea (66 per cent) and the United States (58 per cent).
Education and awareness among users will be key to the success of any security policy. Many mobile users in the survey say they aren’t always aware of security concerns, and their actions provide proof.
Throughout the seven countries, many mobile employees say they access unauthorised wireless networks in public places and in their neighbourhoods.
Many say they don’t encrypt data on their wireless devices or set passwords to prevent physical access to their information.
And, inevitably, some mobile users lose their devices or are victims of theft.
However, more than half agree that regulatory compliance initiatives are driving attention to wireless security. The countries where this is the biggest driver are India, Singapore and China.
Ben Gibson, Cisco’s director of mobility solutions, said: “The research really provides an opportunity for IT to reassess its relationship with increasingly mobile user bases and consider new ways to minimise spending. If you look at it from all angles — compliance, policies, business needs and human behaviour — technology is only half of the equation. Proactive communication, education and engagement of employees on safe, appropriate online behaviour, especially when they are mobile and remote, can help to ensure solid returns on strategic IT investments that bring the promise of a secure, mobile wireless business to life.”
Thursday, September 20, 2007
Cisco outlines next web revolution
"No army can withstand the strength of an idea whose time has come," said Howard Charney, Cisco's senior vice president, borrowing from Victor Hugo to summarise the power of the internet.
Speaking in Brisbane this week, Charney said the world — split into "information-rich" (developed) and "information-poor" (developing) countries — is on the precipice of a major wave of innovation, thanks to the internet, growing urban populations and falling hardware prices.
The combination of the availability of Nicholas Negroponte's so-called "$100 laptop" to two billion people in China and India, and over half the world's population living in cities by 2008, will have a profound effect on both worlds, said Charney.
Greater access to information will improve living standards by removing isolation, which will in turn stem the growing disparity between productivity growth rates of information "poor" and "rich" nations — a gap which has doubled in the last decade according to an OECD report, said Charney.
However, he said his vision is not entirely philanthropic. For developing nations to improve life, they will need networks — Cisco's networks, he hopes, whether it's dark fibre or wireless.
"You know, we're very big," said Charney. "When you're big, you have societal obligations… But are we going to be making profits off [building networks in developing countries]? Yes, there is a business proposition."
IBRS analyst Dr Kevin McIsaac, agreed that "enabling technology" like a laptop will help, but posed the question: "What else will they need?"
"In Bangladesh the [Grameen Bank] lent as little as $5 to women to buy a mobile phone. This was incredibly important to enable the technology for these women to get started. They would rent out the time on the phone, which was enough to live, pay the mortgage and was a vital piece of technology in the village."
Instead of walking two days into the village to sell their produce, the women were able to call local buyers and negotiate better prices, which offered a better outcome than would have been possible under stressed conditions, McIsaac added.
Across the information-rich divide
However, innovation won't simply happen for "information-rich" countries, continued Cisco's Charney.
"Our challenge today is in recognising the potential of new technology and putting it to use faster than before," he said.
"To sustain innovation, we need investment and sometimes that seems like crazed speculation," he said, using Holland's tulip and the US's great llama bust as prime examples.
"This does not mean people should take greater risks," Charney said. "Investment occurs in different ways and sometimes people get caught up in making money and build out business models that don't turn out to work, but that also created investments in dark fibre. Now, we use that for a business model that does."
"That permitted the Indian outsourcing industry to get started. How could companies in the US and Europe outsource to India — which is now worth hundreds of billions of dollars?" asked Charney.
However IBRS's McIsaac warned not to interpret retrospectively good investments for efficient outcomes. "Value has come out of the [dot-com boom], but there was an enormous waste of investment," he said.
"Business needs to take a portfolio view of investments in technology. Five percent should go into blue-sky investments, like wikis and Web 2.0 for knowledge-management projects, but 30 percent should go into keeping IT running and improvements on existing technology."
Speaking in Brisbane this week, Charney said the world — split into "information-rich" (developed) and "information-poor" (developing) countries — is on the precipice of a major wave of innovation, thanks to the internet, growing urban populations and falling hardware prices.
The combination of the availability of Nicholas Negroponte's so-called "$100 laptop" to two billion people in China and India, and over half the world's population living in cities by 2008, will have a profound effect on both worlds, said Charney.
Greater access to information will improve living standards by removing isolation, which will in turn stem the growing disparity between productivity growth rates of information "poor" and "rich" nations — a gap which has doubled in the last decade according to an OECD report, said Charney.
However, he said his vision is not entirely philanthropic. For developing nations to improve life, they will need networks — Cisco's networks, he hopes, whether it's dark fibre or wireless.
"You know, we're very big," said Charney. "When you're big, you have societal obligations… But are we going to be making profits off [building networks in developing countries]? Yes, there is a business proposition."
IBRS analyst Dr Kevin McIsaac, agreed that "enabling technology" like a laptop will help, but posed the question: "What else will they need?"
"In Bangladesh the [Grameen Bank] lent as little as $5 to women to buy a mobile phone. This was incredibly important to enable the technology for these women to get started. They would rent out the time on the phone, which was enough to live, pay the mortgage and was a vital piece of technology in the village."
Instead of walking two days into the village to sell their produce, the women were able to call local buyers and negotiate better prices, which offered a better outcome than would have been possible under stressed conditions, McIsaac added.
Across the information-rich divide
However, innovation won't simply happen for "information-rich" countries, continued Cisco's Charney.
"Our challenge today is in recognising the potential of new technology and putting it to use faster than before," he said.
"To sustain innovation, we need investment and sometimes that seems like crazed speculation," he said, using Holland's tulip and the US's great llama bust as prime examples.
"This does not mean people should take greater risks," Charney said. "Investment occurs in different ways and sometimes people get caught up in making money and build out business models that don't turn out to work, but that also created investments in dark fibre. Now, we use that for a business model that does."
"That permitted the Indian outsourcing industry to get started. How could companies in the US and Europe outsource to India — which is now worth hundreds of billions of dollars?" asked Charney.
However IBRS's McIsaac warned not to interpret retrospectively good investments for efficient outcomes. "Value has come out of the [dot-com boom], but there was an enormous waste of investment," he said.
"Business needs to take a portfolio view of investments in technology. Five percent should go into blue-sky investments, like wikis and Web 2.0 for knowledge-management projects, but 30 percent should go into keeping IT running and improvements on existing technology."
Tuesday, September 18, 2007
Cisco to buy Cognio
Networking equipment maker Cisco Systems said Tuesday that it plans to buy privately held Cognio, a company that has developed technologies to better manage wireless spectrum.
Financial details of the deal weren't disclosed.
Cisco said Cognio's technology that detects, classifies, locates, and mitigates sources of radio frequency, compliments its existing portfolio of wireless technologies. And it will allow corporate network managers who have deployed Cisco's wireless technologies to better manage their wireless spectrum to minimize interference.
"Wireless spectrum is a strategic asset for our customers, and its management is key to the robust delivery of mobility applications," Brett Galloway, vice president and general manager of Cisco's wireless networking business unit said in a statement. "Cognio's innovation in spectrum intelligence will help ensure Cisco continues to differentiate our ability to deliver our customers rich and dependable end-user mobility experiences."
Cisco said it expects the deal to close in the first quarter of its 2008 fiscal year. Cognio is Cisco's 122nd acquisition, and it's the first one the company has announced this fiscal year, which started in July.
Financial details of the deal weren't disclosed.
Cisco said Cognio's technology that detects, classifies, locates, and mitigates sources of radio frequency, compliments its existing portfolio of wireless technologies. And it will allow corporate network managers who have deployed Cisco's wireless technologies to better manage their wireless spectrum to minimize interference.
"Wireless spectrum is a strategic asset for our customers, and its management is key to the robust delivery of mobility applications," Brett Galloway, vice president and general manager of Cisco's wireless networking business unit said in a statement. "Cognio's innovation in spectrum intelligence will help ensure Cisco continues to differentiate our ability to deliver our customers rich and dependable end-user mobility experiences."
Cisco said it expects the deal to close in the first quarter of its 2008 fiscal year. Cognio is Cisco's 122nd acquisition, and it's the first one the company has announced this fiscal year, which started in July.
Monday, September 3, 2007
Cisco Turns to Trend Micro for Router Security
Cisco Systems Thursday unveiled plans to add content security services to its routers via an extended partnership with Trend Micro.
The San Jose, Calif.-based networking vendor plans soon to integrate Trend Micro technology into the operating system of its Integrated Services Routers (ISRs), adding services such as content filtering to its family of branch office routers, said Tom Russell, senior director of Cisco's Security Technology Group.
The new offering, which will be available "in the near future," will make it easier for channel partners to build layered security solutions, as the ISR family already supports several integrated security options, Russell said. It will also help push content security out to remote locations, he added.
"You need to have content security at the central site, but you also have to distribute it to all of the points in the network," he said.
Cisco and Cupertino, Calif.-based Trend Micro have been working together since 2004. Trend Micro content security technology is already incorporated into Cisco's Adaptive Security Appliance family of unified threat management wares.
Trend Micro is also a partner in Cisco's Network Admission Control initiative and offers its own Damage Cleanup Services for the Cisco MARS (Mitigation, Analysis and Response System) platform.
The San Jose, Calif.-based networking vendor plans soon to integrate Trend Micro technology into the operating system of its Integrated Services Routers (ISRs), adding services such as content filtering to its family of branch office routers, said Tom Russell, senior director of Cisco's Security Technology Group.
The new offering, which will be available "in the near future," will make it easier for channel partners to build layered security solutions, as the ISR family already supports several integrated security options, Russell said. It will also help push content security out to remote locations, he added.
"You need to have content security at the central site, but you also have to distribute it to all of the points in the network," he said.
Cisco and Cupertino, Calif.-based Trend Micro have been working together since 2004. Trend Micro content security technology is already incorporated into Cisco's Adaptive Security Appliance family of unified threat management wares.
Trend Micro is also a partner in Cisco's Network Admission Control initiative and offers its own Damage Cleanup Services for the Cisco MARS (Mitigation, Analysis and Response System) platform.
Cisco playing network defence
Cisco's six-year-old Self-Defending Network strategy for securing converged networks remains a work in progress: Acquisitions and internal developments are moving it forward even as customers push Cisco to go above and beyond its initial plans.
Cisco spends US$400 million annually - roughly 10 percent of its total R&D budget - on security. The company's aim with SDN is to integrate security into all aspects of a converged data, voice and video network with a focus on secure connectivity, threat defence, and trust and identity management.
In June, Cisco provided its most recent update on SDN after its acquisition of IronPort Systems, a privately held developer of email and web security products. Cisco said IronPort ushered in Version 3.0 of SDN (Version 1.0 involved Cisco's recognition that security is more than point products, like firewalls, VPN concentrators and intrusion-detection systems; Version 2.0 comprised building those capabilities into Cisco products.)
Cisco plans to port IronPort's SenderBase reputation services onto Cisco Adaptive Security Appliance firewalls by the first half of 2008. Cisco also plans to port SenderBase to other key security or routing platforms, such as the Integrated Services Routers and Mitigation Analysis and Response System. Integration with Cisco and third party network admission control (NAC) products also is expected.
"If they can now get email security, Web security - basically all the secure messaging technologies - into that mix they've got a bigger story," says Charlotte Dunlap, senior analyst of enterprise security at Current Analysis.
Dunlap is keeping an eye on how Cisco might take advantage of an existing relationship between IronPort and Vontu, a developer of software that analyzes content and authorizes user access at endpoints to protect against data leakage.
"I'd really like to hear their data-leakage story," says Dunlap, who compares Cisco's purchase of IronPort to Secure Computing's acquisition of CipherTrust last year. "[IronPort does not offer] the level of depth that the data-leakage prevention providers do."
Cisco intends to maintain IronPort's ties to Vontu and exploit the relationship for inclusion in the SDN architecture, according to Jeff Platon, vice president of security marketing at Cisco.
"I think of that as a part of the solution but I do see a variety of other parts of the portfolio that are also being enhanced to be able to participate in a more comprehensive data-leakage solution," Platon says. "It's a tough problem -- you can't just rely on one methodology."
An announcement last week by Cisco and Intel might help. Intel enhanced its vPro processor technology with a Cisco-certified "embedded trust agent" that offers Cisco customers the ability to manage systems without lowering the security on IEEE 802.1x networks and Cisco SDN products.
Nielsen says PG&E hasn't been briefed yet on Cisco's road map for that. But where SDN currently fits is in spots where PG&E is installing new Cisco infrastructure.
"Where we've had problems is where we have legacy systems," Nielsen says. "If a company buys into the Cisco solution and they buy all of the pieces, it works great; but you've got to have all of the pieces there. You can't do clean access NAC on a Catalyst 1900 switch that was built six or 10 years ago; it just doesn't work."
Nielsen notes that this issue is industrywide, not Cisco-specific.
Cisco spends US$400 million annually - roughly 10 percent of its total R&D budget - on security. The company's aim with SDN is to integrate security into all aspects of a converged data, voice and video network with a focus on secure connectivity, threat defence, and trust and identity management.
In June, Cisco provided its most recent update on SDN after its acquisition of IronPort Systems, a privately held developer of email and web security products. Cisco said IronPort ushered in Version 3.0 of SDN (Version 1.0 involved Cisco's recognition that security is more than point products, like firewalls, VPN concentrators and intrusion-detection systems; Version 2.0 comprised building those capabilities into Cisco products.)
Cisco plans to port IronPort's SenderBase reputation services onto Cisco Adaptive Security Appliance firewalls by the first half of 2008. Cisco also plans to port SenderBase to other key security or routing platforms, such as the Integrated Services Routers and Mitigation Analysis and Response System. Integration with Cisco and third party network admission control (NAC) products also is expected.
"If they can now get email security, Web security - basically all the secure messaging technologies - into that mix they've got a bigger story," says Charlotte Dunlap, senior analyst of enterprise security at Current Analysis.
Dunlap is keeping an eye on how Cisco might take advantage of an existing relationship between IronPort and Vontu, a developer of software that analyzes content and authorizes user access at endpoints to protect against data leakage.
"I'd really like to hear their data-leakage story," says Dunlap, who compares Cisco's purchase of IronPort to Secure Computing's acquisition of CipherTrust last year. "[IronPort does not offer] the level of depth that the data-leakage prevention providers do."
Cisco intends to maintain IronPort's ties to Vontu and exploit the relationship for inclusion in the SDN architecture, according to Jeff Platon, vice president of security marketing at Cisco.
"I think of that as a part of the solution but I do see a variety of other parts of the portfolio that are also being enhanced to be able to participate in a more comprehensive data-leakage solution," Platon says. "It's a tough problem -- you can't just rely on one methodology."
An announcement last week by Cisco and Intel might help. Intel enhanced its vPro processor technology with a Cisco-certified "embedded trust agent" that offers Cisco customers the ability to manage systems without lowering the security on IEEE 802.1x networks and Cisco SDN products.
Nielsen says PG&E hasn't been briefed yet on Cisco's road map for that. But where SDN currently fits is in spots where PG&E is installing new Cisco infrastructure.
"Where we've had problems is where we have legacy systems," Nielsen says. "If a company buys into the Cisco solution and they buy all of the pieces, it works great; but you've got to have all of the pieces there. You can't do clean access NAC on a Catalyst 1900 switch that was built six or 10 years ago; it just doesn't work."
Nielsen notes that this issue is industrywide, not Cisco-specific.
Tuesday, August 7, 2007
Cisco wants to be like Apple
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.
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.
Monday, July 30, 2007
Cisco to acquire equity stake in VMware
Cisco Systems Inc. plans to acquire a 1.6% equity stake in virtualization software player VMware Inc., mirroring a step Intel Corp. took earlier this month.
The investment is part of an upcoming initial public offering (IPO) of 10% of VMware's stock.
Cisco said Friday that it plans to buy US$150 million of VMware Class A common shares, which are owned at present by EMC Corp., VMware's parent company. The move is subject to regulatory and other closing conditions. Once the investment has been made, Cisco will own around 1.6% of VMware's total outstanding common stock. According to an updated VMware S-1 filing with the U.S. Securities and Exchange Commission, Cisco will buy 6.0 million shares, valuing each VMware share at $25.00.
VMware is considering whether it will appoint a Cisco executive to its board of directors.
Cisco hopes taking a stake in VMware will help bring two companies closer together and result in more users adopting VMware virtualization software and Cisco networking products. Cisco and VMware also announced they have agreed to collaborate on joint development and marketing.
The investment is part of an upcoming initial public offering (IPO) of 10% of VMware's stock.
Cisco said Friday that it plans to buy US$150 million of VMware Class A common shares, which are owned at present by EMC Corp., VMware's parent company. The move is subject to regulatory and other closing conditions. Once the investment has been made, Cisco will own around 1.6% of VMware's total outstanding common stock. According to an updated VMware S-1 filing with the U.S. Securities and Exchange Commission, Cisco will buy 6.0 million shares, valuing each VMware share at $25.00.
VMware is considering whether it will appoint a Cisco executive to its board of directors.
Cisco hopes taking a stake in VMware will help bring two companies closer together and result in more users adopting VMware virtualization software and Cisco networking products. Cisco and VMware also announced they have agreed to collaborate on joint development and marketing.
Monday, July 2, 2007
Cisco switches to consumer-oriented strategy
Network equipment maker Cisco Systems aims to make its way into Chinese consumers' living rooms with consumer-oriented gear and services, which could generate a new revenue stream for the US tech giant.Cisco mainly makes routers and switches, which direct the Internet and e-mail traffic and form the backbone of the worldwide Internet networks.
Although it was ranked 77th in Fortune 500 this year, the firm is much less known by average consumers as other brands, such as Apple, Microsoft and Nokia, as it is perceived as mainly a corporate technology vendor.
Susan Bostrom, chief marketing officer of Cisco, said in an exclusive interview with China Daily yesterday that Cisco needs to refashion itself as a more consumer-oriented company by changing the way consumers communicate with each other. "If you look back to 1990s, it's really about getting connected," she said. "But now it's about the power of end-users. We need to create human networks."
Cisco has been on a buying spree, acquiring a number of companies making consumer electronics devices including set-top box maker Scientific-Atlanta for $6.9 billion.
Cisco now hopes gear such as set-top boxes, wireless networked DVD players and video services could help it woo average consumers. "Now the work-life environment is much blurred," Bostrom said.
The consumer-oriented approach would help Cisco tap into China's booming consumer electronics market, the world's second-largest, second only to the United States, according to the Development Research Center of the State Council.
Although it was ranked 77th in Fortune 500 this year, the firm is much less known by average consumers as other brands, such as Apple, Microsoft and Nokia, as it is perceived as mainly a corporate technology vendor.
Susan Bostrom, chief marketing officer of Cisco, said in an exclusive interview with China Daily yesterday that Cisco needs to refashion itself as a more consumer-oriented company by changing the way consumers communicate with each other. "If you look back to 1990s, it's really about getting connected," she said. "But now it's about the power of end-users. We need to create human networks."
Cisco has been on a buying spree, acquiring a number of companies making consumer electronics devices including set-top box maker Scientific-Atlanta for $6.9 billion.
Cisco now hopes gear such as set-top boxes, wireless networked DVD players and video services could help it woo average consumers. "Now the work-life environment is much blurred," Bostrom said.
The consumer-oriented approach would help Cisco tap into China's booming consumer electronics market, the world's second-largest, second only to the United States, according to the Development Research Center of the State Council.
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