Cisco to shift resources to consumer push

Cisco Systems will shift resources into new product areas next year, including making a major push into homes, Chairman and CEO John Chambers said Tuesday.

Cisco Systems will shift resources into new product areas next year, including making a major push into homes, Chairman and CEO John Chambers said Tuesday.

Speaking at the annual Cisco C-Scape industry analyst conference, Chambers laid out Cisco's plans to respond to changes in technology and the economy, which the dominant networking company says it can now do three times as fast as it did in the mid-1990s. That's thanks to the technologies Cisco itself sells, especially the collaboration tools that are at the heart of the company's current development efforts, he said.

Cisco's interest in the consumer arena has been growing over the past few years even as the company pushes the power of collaboration technologies, such as its TelePresence high-definition conferencing systems, to help companies act more quickly. Central to both of those themes is video, which has the financial benefit to Cisco of driving demand for faster and more capable networks.

With a more collaborative corporate structure enabled by its network technology, Cisco has been able to kick off 26 new businesses in the past year, Chambers said. As the economy lurches through its downturn, Cisco does not expect to cut jobs but will try to shift them into those new areas, he said. The new businesses should deliver 25 percent of Cisco's incremental revenue in the next five years, according to Chambers.

Consumer offerings, building on Cisco's Linksys and Scientific-Atlanta products, are among the areas that will see an infusion.

"We think the time has come for Cisco to make a huge play in the home," Chambers said. The company will free up resources over the next 12 months and move them into consumer areas, key among them the provision of entertainment and other rich content by carriers to homes, he said.

For one thing, it will build upon the multimedia technologies it has announced for sports stadiums and deliver an enriched fan experience all the way to viewers at home. In the new Yankee Stadium, Cisco will provide digital signs that can show game play in high definition all around the stadium and also give directions and other information. By the same token, Cisco is also working with the recording industry and entertainment companies such as The Walt Disney Co., Chambers said.

Carrier networks can be used to extend a richer fan experience to homes, Chambers said. Even TelePresence can be used, to create a group viewing experience. Cisco is already pushing enhancements for carrier video to homes, including a capability announced Monday for set-top boxes and edge routers to clear up glitches in video streaming.

Chambers did not claim to know how long current economic woes will continue.

"The depth is occurring pretty rapidly, much as we anticipated," Chambers said. But as to the length of the downturn, Cisco doesn't know, he said. Yet in the longer term, Chambers expects to see productivity rise as fast as it did between the late 1990s and the mid-2000s.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags unified communicationsNetworkingcisco

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?