Those hoping for a major boost in IT budgets shouldn’t hold their breaths: Cisco CEO John Chambers said he doesn’t expect a sales rally for at least five quarters, sending the companies shares on a sharp tumble while stirring some grumblings that maybe it’s time to form a better succession plan to keep top talent.
As Reuters reports, Chambers’ results have been impressive:
Since Chambers took the CEO role in January 1995, Cisco has grown from a company with $1.2 billion in annual revenues to around $40 billion, as the expansion of the Internet fueled demand for routers and switches that direct Web traffic. Cisco also has been expanding into new areas such as online video.
However, his unusual longevity in the top spot might have spurred others to depart:
Analysts have speculated his retirement plan, or lack thereof, was behind the recent departures of strategy chief Charlie Giancarlo, who was widely seen as Chambers’ heir apparent, as well as No. 2 executive Mike Volpi and Jayshree Ullal. Ullal was a rising star who headed Cisco’s switching group, its biggest business.
Chambers addressed those concerns in the Reuters interview, saying he expected the top management spots to look very different in five years, both with new personnel and a new style of leadership. “The next CEO will probably be more a leader of a council than a ‘command and control,” he said, which would play off Cisco CTO Padmasree Warrior’s collaborative focus and Cisco’s “human network” strategy in general.
While it’s nice Chambers is taking the future seriously, not everyone was pleased with his plans: “If Cisco in fact takes a collaborative approach to the corner office, we believe they would have taken their management experiment a little too far and would expect more defections from the senior ranks,” wrote JPMorgan analyst Ehud Gelblum in a research note.
I promised to write more about Networkers, and here it is already almost two weeks later, and I haven’t followed through. For the moment, instead, I’ll share my personal videos from Orlando: One of the Peabody ducks, and two from the Journey cover band, Evolution, which performed at the Hard Rock Cafe during Cisco’s customer appreciation event — which, happily, media was invited to attend. I know it hasn’t much to do with networking, but network pros have to have fun once in a while, right?!
March of the Peabody Ducks:
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Evolution — Oh Sherrie:
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Evolution — Don’t Stop Believing:
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I got a chance to meet with the fine folks over at wireless networking vendor Colubris for the first time yesterday, and they were kind enough to give me a tour of their offices as well as explain some of their technology. Like most wireless networking vendors, they use a centralized controller to manage access permissions and hand offs, with what they say is an important difference.
The difference, Carl Blume, director of strategic marketing, and Tom Racca, vice president of marketing, said, is that Colubris avoids sending all the data traffic through the controller.
Instead, the controller first authenticates users on the wireless LAN, and then tells the acccess point (AP) how to route the data itself, which Carl and Tom said greatly cut down on the amount of redundant data flowing through the network. (They also said, like every other wireless vendor I have ever talked to, that they are the only ones who have solved 802.11n with standard PoE.)
Tom also relayed what I thought was an interesting story: Colubris access points can be set to work semi-autonomously, and if they get knocked offline they can be configured to automatically re-connect to the central controller. One school system, sick of APs wandering off, opened up a port in their firewall to let the devices reconnect even when they were out on the public Internet. Sure enough, a missing AP started phoning home, and the school was able to use the AP’s IP address to locate the missing access point … and arrest its thief.
We hear such “phone home” capabilities are going to become more common, and already stories of cameras and laptops photographing perps and posting their pictures are common. While maybe not a deal sealer, it’s certainly not bad as extra protection for devices that retail for $1000 and beyond.
Do you have any home phoning success stories?
|“Angelina looks cool, but a tattoo in binary would be so inefficient!”|
> View all our IT Guy cartoons on SearchNetworking.com.
We knew the economy was bad, but did Cisco really have to drop their impressive medallions for plastic plaques?
Arden Packeer, CCIE 20716, blogged the run up to his CCIE: Routing & Switching exam, posting tutorials and regular progress updates as he went. After months of preparation, he posted that he was “deliriously happy” when he finally passed.
Two days ago, when he received his certification by mail, those feelings were slightly less warm:
Seriously, Cisco, the new CCIE Plaques suck!
We pay $1400 a pop for the Exam (not to mention countless hours of blood sweat and tears), surely Cisco can make the prize at the end a little better than this!
and the older medallion style, courtesy Greg Ferro’s blog, Ethereal Mind:
We can sympathize with Arden, but apparently he’s a few years too late to rock the medallion. We asked Peter Koht, who works with Learning@Cisco’s public relations, if the older models were still available, and this was his response:
According to the folks I asked over at Cisco, the original CCIE award/plaque was a medallion at the
end of a ribbon in a shadow box format.
This was retired out at least 5 years ago and replaced with the plaque, which is on it’s second iteration.
The medallion is no longer offered.
Hope that helps
Sorry Arden, but maybe a petition can get Cisco to change their mind. Think of all the great publicity certifications would get if people started wearing their medallions when they went out? Maybe there could even be some product placement with Mr. T: Imagine him adding some CCIE bling and shouting, “I pity the fool who don’t know Cisco.” I think it could be a win-win all around, and would help give those hard-working Cisco studs the recognition they deserve.
- Another CCIE vents about the plaque, but doesn’t get a Cisco response.
- CCIE still worth it, even with no medallion? Read SearchNetworking’s Certification Guide
- Contact Mr. T’s booking agents
I just happened to be sitting next to an Ipswitch representative on my flight from Boston to Orlando last week for Cisco Networkers, so I decided to stop by their booth and take a look at their network monitoring and management product, WhatsUpGold. I apologize in advance for the video quality, but I think you can still get an idea of what the tools look like and what it’s designed to accomplish.
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I can’t resist a networking/comic book analogy, so I taped this booth demo from SolarWinds at Cisco Networkers. “Head Geek” Josh Stephens talks about how nonessential traffic — such as the Hulk movie trailer — can make network engineers very angry, and how the latest SolarWinds Orion release can help keep that traffic in check. He also describes SolarWinds’ community portal, Thwack.
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It’s pretty clear that Cisco is serious about the principles of connectivity and collaboration put forth during Networkers. I just got back from Orlando and discovered both a Twitter and a Facebook connection invitation from two different Cisco employees. I also don’t think I’ve ever sent or received so many text messages in my life as during the conference. But more on that later.
I wanted to write a little about Cisco CTO Padmasree Warrior‘s keynote address, which took place Wednesday. Warrior opened by recounting the legend of how, while taking a bath, Archimedes invented his method for measuring the volume of an irregularly shaped object. Supposedly, the great mathematician had to come up with a way to measure the purity of a golden crown, and realized during his bath that submerged bodies displace an amount of water equal to their volume. Then, versions of the legend claim, Archimedes leapt from the tub and ran naked through the streets, shouting “Eureka! I have found it!”
Warrior went on to explain that while we can’t discount this idea of the lone genius having a sudden spark of inspiration, she believes that “ideas get stronger when shared” and that collaborative, collective genius is the way humanity will persist.
She also talked about a phrase she has coined, “brainforming,” which is her take on brainstorming. Without getting very specific about how technology would enable brainforming, Warrior explained that in brainforming, we start to select ideas while we collect them. Collaboration, she said, should be a culture, not a function, and is going to become a persistent global conversation.
Of course, innovation and collaboration aren’t worth much without execution, and Warrior emphasized that in her keynote as well, saying “I strongly believe that without execution, there is no vision.” Her words echoed those of another great inventor, Thomas Edison, who once said that “Genius is one percent inspiration, ninety-nine percent perspiration.”
Now, I have to admit that I’m a fan of the genius in the bathtub idea, and don’t put too much stock in group intelligence. We all have seen the unfortunate products of “design by committee,” which seem all too prevalent in both computer software and business culture — ideas that lack focus, products that are needlessly complex, unproductive meetings that only spawn more meetings, and so on.
I was thinking about the example of Linux creator Linus Torvalds this morning. On one hand, Torvalds basically came up with Linux one day in his bedroom in Finland — supporting the “bathtub” model of genius. On the other hand, Linux didn’t become what it is today until Torvalds put the fledgling OS out there and let the open source development community hack away — supporting the collaborative model.
I discussed Warrior’s keynote with two attendees: Brad Fox, a network manager and security engineer at Black & Decker, and Peter Perreault, senior network engineer at Tullett Prebon (a financial inter-dealer broker). Peter put things into perspective by saying that even if there’s a lightbulb going on for the guy in the bathtub, great ideas are always built on the shoulders of giants — so collaboration technology, at its best, perhaps gives that genius a larger pool of giants to draw from.
Brad said, “Just don’t take your laptop in the bathtub.”
Cisco chairman and CEO John Chambers welcomed attendees of Cisco Live 2008 (a.k.a. Cisco Networkers) at his keynote address in Orlando Tuesday morning with the message that the network will become the platform for all communication, and that Cisco will be the leader in providing the connectivity.
After an opening segment with loud music, colored lights and 11 screens displaying attendees’ favorite sports teams (on which they “collaborated” via text message), Chambers got down to talking about Cisco’s ability to stay abreast of market transitions. He explained that Cisco will leverage their position as the market leader to facilitate “any device, any content” communications and collaboration, which he sees as the market transition that is happening now.
Major components of this collaboration scenario, according to Chambers, are social networking and video — in fact, he said that “visual networking is the future.” But Chambers said Cisco plans to add vision to social networking, putting structure behind Web 2.0-type tools like Twitter or Facebook (he alluded to the way “kids” use social networking tools here), validating their use as business tools.
A highlight of the session was the demonstration of WebEx Connect and how Cisco’s latest and greatest collaboration technology (brought about by Cisco’s recent WebEx acquisition) will enable us to communicate differently. Jim Grubb — jokingly dubbed “chief demonstration officer” — joined Chambers on stage for the demo. They showed off one-touch meeting functionality and something called “casting,” which I captured in this short video.
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Chambers reiterated the theme of his March VoiceCon keynote that the focus of online video collaboration (a.k.a. telepresence) is not only about cutting down on travel costs or “going green” by reducing associated emissions, but also, and more importantly, about changing business models to increase productivity.
As proof that Cisco is eating their own dog food (so to speak), Chambers gave some statistics about the growth of social networking use at Cisco, including blogs, wikis, discussion forums, and something called C-Vision, which he said was like “YouTube for the Enterprise.” (Later in the day, Chambers also answered user questions online in Second Life, underscoring his company’s interest in using social networking tools for business. Somewhat ironically, a glitch in the program made Chambers’ avatar’s virtual pants render as sort of an “image loading” error message.)
Other prominent themes of the keynote were Cisco’s focus on innovation, as evidenced in their I-Prize program, and on virtualization — not just in the data center or server, Chambers said, “virtualization in everything you do.” An example of this was Cisco’s virtual launch of their ASR 1000 product.
Of course, I’m always skeptical, and wondered whether the network having to deliver all communications is really going to be such a good thing. One, there’s the increased reliance on technology — which, let’s face it, no matter how good Cisco makes the product, can still fail. Two, there’s the problem of user integrity; virtual tools only work really well when users take the time to create fully-fleshed out profiles and enter all their contact information — and social networking tools enable the delivery of not just productivity, but lots of twittering about our cats, poking and ROTFLing. Then again, I’m not so sure that’s completely different from real life collaboration.
Wall Street’s buzz about a possible Cisco-EMC marriage faded this afternoon when Cisco Systems CEO John Chambers sat down with the press for a round table discussion during his company’s annual customer conference, Cisco Live. When asked whether Cisco would be acquiring a storage vendor, Chambers immediately shot down the idea, saying he couldln’t see a way for his company to differentiate itself in the storage hardware market.
“The margins aren’t good in storage devices,” Chambers added. He said prefers more modest acquisitions, companies with a large staff of engineers that’s about to take a a new product to market, for instance.
Last month, some Wall Street analysts and journalists had speculated that an EMC acquisition by Cisco might make some sense for the company, but it looks like simple wishful thinking at this point.
Chambers also revealed that Cisco is currently evaluating its potential for growth in the consumer technology market. He said Ned Hooper, senior vice president of corporate development and the consumer and small business group, owes him a plan for consumer brand development within the next 12 months.
Chambers said Cisco’s current consumer play sits at around $3.5 billion ($1 billion in business from its consumer wireless router Linksys brand and $2.5 billion from its Scientific Atlanta set-top box business). He said Hooper, who is known as a merger & acquisition guru at Cisco, is evaluating whether Cisco can push its consumer business to $10 billion.
Since Chambers also revealed that he envisions consumer adoption of Cisco’s TelePresence technology to take off once the company can offer a $10,000 price point for a home solution, a $10 billion consumer business might not be out of the question.