Uncommon Wisdom

Feb 4 2010   2:10PM GMT

Chambers’ financial comments rosy, but will core market suffer?



Posted by: Tom Nolle
Tags:
Cisco
core market
core routers
CRS-1
financials

Cisco reported its numbers, which were significantly better than estimates. Profit growth was significant, but it was the 8% revenue growth and rosy comments on the state of the recovery that made Chambers’ remarks on the call memorable.

The most significant fact about the performance in our view is that it appears to validate Cisco’s “peripheral opportunities” strategy for total addressable market growth. Cisco is working hard to make the transition from a networking company to a technology company, and there are major risks that the shift will impact its existing businesses before it builds new opportunity.

So far, Cisco appears to be avoiding those risks. There are also rumors that Cisco will be announcing a new core router, a successor to the CRS-1 line. If those pan out, it will represent a revalidation of Cisco’s carrier business commitment (which some have doubted even within Cisco).

 Comment on this Post

 
There was an error processing your information. Please try again later.
Thanks. We'll let you know when a new response is added.
Send me notifications when other members comment.

REGISTER or login:

Forgot Password?
By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Forgot Password

No problem! Submit your e-mail address below. We'll send you an e-mail containing your password.

Your password has been sent to: