At a recent technology conference, the CEO highlighted Cisco’s strategy to introduce new “advanced technology” segments every few months starting the next fiscal year. These areas are identified as potential billion-dollar revenue streams. This marks a shift from Cisco’s previous conservative approach, with no recent additions to their advanced technology portfolio.

FAQs:

  1. What are Cisco’s advanced technologies?
    Cisco’s current advanced technologies include wireless, optical, home networking, storage networking, IP telephony, and security.

  2. Why is Cisco focusing on new advanced technologies?
    Cisco aims to stay ahead by investing in emerging technologies that have the potential for substantial growth and revenue.

  3. How long does it take for a technology to reach a $1 billion run rate at Cisco?
    It typically takes five to seven years for a technology to achieve a $1 billion revenue milestone at Cisco.

  4. What hints did the CEO, John Chambers, drop about future advanced technologies?
    Chambers suggested a focus on data center advancements and technology convergence in the pipeline.

  5. What is the “application-oriented networking” initiative (AON)?
    AON is Cisco’s initiative to expand beyond internet routing into messaging middleware, potentially a candidate for the advanced technology label.

  6. How does Cisco approach innovation and acquisitions?
    Cisco plans to continue developing technologies internally while also acquiring companies and collaborating with market leaders to drive growth.

  7. What lessons has Cisco learned from its past investments in new technologies?
    Cisco acknowledges a need for more assertive investments in new technologies based on past success rates.

  8. How does Cisco view partnerships in new markets?
    Cisco believes in partnering with established players to ensure a strong market presence, especially when not in a top-five position.

  9. How important is innovation for Cisco’s future growth?
    Innovation and strategic acquisitions are integral to Cisco’s growth strategy, aiming to capitalize on market opportunities.

  10. What role does Cisco’s CTO, Charles Giancarlo, play in the company’s technological advancements?
    Giancarlo emphasizes the symbiotic relationship between innovation and acquisitions to drive market growth.

  11. How does Cisco plan to ensure success in new market ventures?
    Cisco adopts a multifaceted approach, combining internal innovation, acquisitions, and strategic partnerships to succeed in emerging markets.

  12. What is the key takeaway from Cisco’s approach to advanced technologies?
    Cisco’s proactive investment in new technologies showcases a commitment to staying at the forefront of innovation and market leadership.

Summary:

Cisco’s proactive shift towards introducing new advanced technologies reflects its commitment to innovation and market leadership in the tech industry. By focusing on emerging areas with high growth potential, such as data center advancements and technology convergence, Cisco aims to secure substantial revenue streams in the coming years. Through a combination of internal innovation, strategic acquisitions, and partnerships with established players, Cisco is poised to drive market growth and solidify its position as a key player in the ever-evolving technology landscape. For readers interested in staying updated on Cisco’s advancements and industry trends, visiting the official website can provide valuable insights and opportunities for further exploration.