Cisco has not been doing too well in the last four quarters, and now that its stock slid by over 30 percent, CEO John Chambers is making some changes. In addition to eliminating the slow council-based management mechanism it once used, Cisco is also reshaping its outbound strategy.
The company is now focusing more on investing in its core businesses, including blade servers. Cisco passed Dell in terms of sales and became the third largest player in this market. A ccording to a recent report by IDC, it currently holds a 9.4 percent of the market. It’s also putting an emphasis on tapping the global market, based on some of the most recent updates from the company.
Cisco teamed-up with German business software maker SAP to offer SAP HANA on the Cisco Unified Computing System (UCS) to customers in the Southwest Asia region, particularly Malaysia. In a press release, the two companies citied an IDC report that indicates that the Asia Pacific business intelligence market will grow to $819 million by 2014.
In the same time frame, Cisco announced yet another international partnership, this time with EMC and VMware. The companies launched the EMC Centre of Excellence and the Cisco Globalization Centre East in Bangalore, India. The two centers are located in the same facility, and offer customers a chance to test-drive Cisco and EMC products.
Cisco is reshaping itself, and will only be focusing on the more significant aspects that make up its quarterly earnings. As a part of this, the company made some staffing changes and budget cuts – notably the Flip shut down. Flip was responsible for making a very popular brand of video recording devices, and now that Cisco pulled the plug on it, original founder Jonathan Kaplan, has a new venture. He is opening a restaurant chain called the Melt, serving grilled cheese and soup.
“Heavy on technology, the Melt will encourage consumers to order sandwiches and soup using apps and to pay for them using mobile phones. His backers include venture-capital firm Sequoia, known for investments in companies such as YouTube.”