For Cisco, the global switch and router giant, big and rapid growth will now happen from the sale of new and advanced technologies that the company is now dealing in. These include security, storage, IP telephony, optical, and wireless.
According to John Chambers, president and CEO of Cisco, "Growth from the advanced technology products will be over 30 percent in the future, which Cisco's routers and switches will grow at about 10 to 12 percent." Compared to routers and switches, which contribute about 80 percent to Cisco's kitty, sales from new and advanced technologies give the remaining 20 percent.
Interestingly, while many of the other telecom equipment companies are also looking at big revenues coming from services, Cisco will focus to be a products company. "Our focus will be to ensure that our customers and partners are able to offer lot many more services to their end customers," Chambers added.
According to Chambers the future of IT companies, jobs, and countries that do well in IT will depend on four factors: educations systems, IT infrastructure, capability to innovate in the market, and government's support. Chambers was addressing the media about Cisco's integrated network strategy, that will evolve into integrated services and then integrated applications.
Chambers also added that the company will be investing quite a bit in India and China. According to Ned Hooper, vice president, business development at Cisco, at the moment we are looking at several companies in India in the areas of wireless and wireless applications, gaming, security, and component level development for acquisition. Most of these are 70-90 member teams with about $20 to 30 million revenues.
Ibrahim Ahmad
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