UPDATED 12:41 EST / APRIL 07 2011

Cisco Takes a Slice of Humble Pie

Last week caught Cisco intensively promoting its TelePresence service, at a rather stiff price, placing its stake on seniority and professionalism.

This is one of the steps Cisco took in the last period, to an uncertain direction, allowing competitors, such as HP, Alcatel-Lucent and Juniper to take up the ball. But Cisco’s CEO John Chambers wants to put an end to this situation, as he stated in the memo he sent to his employees and was made public 2 days ago. Chambers admits the company’s moves have no coherence and consistence as in the last couple of years, Cisco focused its attention on consumer space, video, and telepresence.

‘They used to just do routers and switches,” said Morgan, who has owned Cisco since the early 1990s. “That was the Cisco thing and it worked for them. Then they started getting into all this other stuff. It’s kind of confusing.’

In the memo, Chambers restates the company’s five goals that need to be met in order to restore its top place on the market: ‘leadership in core routing, switching and services; collaboration; data center virtualization and cloud; architectures; and video.  The importance of delivery to market through our partners is also clear – and we will do nothing but reinforce this.’

‘It is clear to me that we have incredible foundational strengths – our people, our relationships, our innovation and our strategy to extend the role of the network.  We have anticipated market transitions and made good decisions in capturing them.  We are disrupting the data center space. We are redefining the collaboration market. And we have gone big on video, a market that is changing society and business completely.’

Chambers sees a partial solution in the 30 new businesses Cisco ventured into, after the 31% fall of the company in 2010, equal to approximately $45 billion in market value.  Most probably shareholders are not too impressed with Cisco’s plan as Chamber’s statements are very vague. They lack any detail and some voices say that a good change might be the replacement of Chambers, in addition to the new hires at the top management level in Cisco.


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