Cisco and Huawei Years War: the advantage is lost prospects Mengyin Ying
Huawei's competitors in the United States, but the investigation report of the U.S. House of Representatives Permanent Select Committee on Intelligence, 58, the only emerging opponent is Cisco.
This report mentions that Cisco is because "there is evidence that Huawei ignore the intellectual property rights of U.S. companies and entities". At this point, all of the report about the accusations of "national security", "Huawei identity" finally fell implement Huawei United States in the name of security, shut out, or because many years ago with Cisco's intellectual property disputes.
According to the "Washington Post" reported the newspaper from a the hands of those who are familiar with the Cisco sales strategy, won seven statements in September 2011 released by Cisco, Huawei national security "as the title for induce customers to stay away from Huawei.
In fact, from 2002 Cisco "stare" on Huawei began, the time of this report comes behind this Cisco a decade-long war with Huawei.
The beginning of the war: intellectual property lawsuit
Careful analysis of the U.S. House of Representatives Permanent Select Committee on Intelligence of the survey report, and indeed for the Cisco meaning of "revisionist".
"Huawei official has denied infringement of the intellectual property rights of other companies Huawei and Cisco lawsuit after Huawei agreed to cancel some of the products on the market, but Huawei still claimed, it did not infringe the interests of the Cisco contrast, Huawei insists their equipment that expert review did not find any patent infringement Cisco. "
Litigation for the year, the report gives a clear and tough attitude: "Huawei's excuse is untenable."
From the Intelligence Committee's investigation proceedings relative to Cisco, Huawei Huawei Cisco litigation statement, Huawei was statement is not consistent, then, Huawei, said some of the equipment will be removed from the market. Second, when Cisco's agreement also contains a Huawei "update and change all allegations of infringement of copyright or intellectual property products.
Finally, the Commission found that, "Huawei denied the claim of infringement of intellectual property rights, and there is no reliable evidence to support Huawei failed to produce any internal documents or evidence to support its argument, the Committee believes that Huawei disregard of the intellectual property rights of other entities."
Cisco and Huawei's intellectual property lawsuit ended two reconciliation year, Cisco sued Huawei infringement is not established. But why revisit the issues at the moment, for Cisco "Revisionist"?
January 24, 2003, the federal court in the Eastern District of Texas, USA, Cisco Huawei software and patent infringement litigation. 77 complaint alleged theft of its source code in a variety of routers and switches, Huawei, product flaws exist similar; allegations also violated at least five patents owned by Cisco router and switch command interface software.
In fact, this is not a sudden lawsuit from data communications products began in 1999, Cisco and Huawei confrontation is inevitable. To Ethernet and other mainstream data products from the access server, router, Huawei has grown rapidly in this area. 2002, Huawei routers, switches market share has almost equal to Cisco, to become its biggest competitors.
Routers, switches and other data products, Cisco inception housekeeping magic, many years of efforts, Cisco's 70% market share in the global data communications. But with the constant introduction of Huawei data communications products to promote as well as the process of internationalization, Cisco apparently felt Huawei threat has spread from China to the world.
2002, is the confidence Huawei preparing a major push into the U.S. market, zhengfei: "valiantly, full of dash across the Pacific. The telecommunications equipment exhibition held in Atlanta in June 2002, is a full range of Huawei data communications products in the U.S. market for the first time officially unveiled. Huawei shows data products, its performance with Cisco products fairly, but 20% to 50% lower prices than rivals. Huawei hard-edged first came to the United States market, the aggressive advertisements placed on the media in the United States: "They only difference is the price."
This June, Huawei American companies set up at the same time, Huawei began with the second largest global data networking company 3Com formal contact and began to set up a joint venture negotiations. U.S. market, Huawei's sales over the previous year to the end of 2002, an increase of nearly 70%, Cisco's dominance of the global network equipment market has not been shaken, but its sales and market share have occurred in the first decline in.
Alleged in the Atlanta exhibition, Cisco CEO John Chambers quietly patronize Huawei booth. Since then, Cisco has quickly established company called "combat Huawei" working group, set up a special home page intranet for its employees around the world to discuss how to combat Huawei and began to prepare for the proceedings. Previously, Cisco has also a blow Juniper "group.
With the advance of Huawei in the U.S. market, the challenge for Huawei products synchronized from Cisco that the The Huawei Quidway routers and Cisco models and have similar technical characteristics, and found there own software on Huawei's software defects.
In January 2003, Cisco sued Huawei, intellectual property litigation began, the war of the two big telecommunications company, turned to the ground, from the ground from Running out to the public.
Huawei has always been low-key, just enter the U.S. market, Huawei less known. Although prior Huawei already know that Cisco is about to prosecute, but all of Huawei's center of gravity on the above respond to the lawsuit. In contrast, Cisco can be described as well-prepared. For example, in the proceedings before Cisco announced an invest 150 million dollars in the global advertising plan, public-relations move colors leaving Cisco to take the initiative. Such as the beginning of the litigation, the U.S. public opinion is almost unanimously recognized Huawei steal something of Cisco, the most famous of several U.S. financial media made affirmative reports Huawei infringement, as well as the media have been suspect Huawei has a military background.
The Cisco litigation Huawei infringed focus, source code infringement; technical files and command interface, Cisco Huawei Cisco apply for a private agreement protection technology in the process of the development of these interfaces.
Third-party experts, the data communications professor at Stanford University expert DennisAllison both an old and a new version of Cisco IOS and Huawei VRP platform were comparative analysis of results: 200 million lines of source code Huawei VRP platform, Cisco IOS 2000 million lines, including Huawei VRP old platform, only 1.9% of the private agreement with Cisco, 2,000,000 software how possible to copy a 10-fold greater than your software? "
March 20, 2003, after negotiations has long Huawei and 3Com joint venture was set up jointly operate research and development, production and sales of data communication products. This is a turning point in Cisco and Huawei lawsuit.
Claflin then testify in court when he was CEO of 3Com Corporation, Huawei's technology and strength is trustworthy. In fact, before the joint venture, 3Com Huawei Technologies management were investigated, because the trust decided to joint venture.
Since then, the two sides repeated evidence, and conducted two hearings, on June 7, the court rejected the request of Cisco's application for an order for the ban Huawei products rejected the ban proposed by Cisco Huawei use command line similar to the Cisco operating software procedures. But enacted a the limited ban: that Huawei router to stop using the controversial software source code, operator interface and online help files, etc..
October 1, 2003, counsel for both parties end than on the work of the source code, proved, Huawei and no infringement. In late July 2004, Cisco and Huawei to reach a final settlement agreement. Huawei does not infringe on Cisco's intellectual property, Huawei has agreed to modify its command-line interface, user manual, help interface and part of the source code, in order to eliminate the doubts of Cisco.
However, this cross in two years at the time the final settlement of the lawsuit, but let Cisco left the "pain". Huawei, Cisco, 3Com Corporation to terminate the litigation of the application submitted to the Eastern District of Texas, United States Court of Marshall Branch Court accordingly issued a decree to terminate Cisco Huawei's lawsuit eventually solve all the controversy since intellectual property cases. This to abort the way, at the same time means that Cisco future no further on the case proceedings or proceedings in respect of the same subject matter.
Although the end of the lawsuit to the reconciliation, but in the past two years, the process of Huawei to enter the United States significantly blocked, put aside a lot of customer contracts. While Cisco did not win the lawsuit, but effectively blocking the road, Huawei.
But Cisco no further on the case proceedings, the to let Cisco thereafter once again faced with the trend of Huawei market's Pozhu of, but can no longer brings up the "litigation" magic weapon.
Cisco therefore shift the battlefield, from the court turned to politics.
10 years of tit-for-tat
Cisco as companies occupy 70% of the U.S. network equipment market, but it has never been the government is its monopoly allegations, by contrast, Microsoft will not be so lucky. This excellent record, can not be attributed CEO Chambers extraordinary diplomatic skills.
After 2003, with Cisco and Huawei business continues to expand, the market areas of competition between the two sides is growing from the switch to the router, extending from the enterprise market to the core equipment market, is the all-round competition of the telecommunications network products. Chambers of Huawei certain alternative "diplomacy", that, since the end of the lawsuit, the moment talks about the Huawei Huawei is Cisco's largest competitors frequent communication to the public, Huawei, how terrible.
In 2007, Cisco CEO John Chambers to visit China, when asked about the opponents, his outspoken, one of which is Huawei. Has been warning Chambers said: "Huawei will be a the Cisco global nightmare.", Especially in the Chinese market in the past few years, Huawei and subsequently Huawei 3Com to Cisco in the Chinese market has brought no small obstacles.
After 2009, Huawei accelerated expansion to the enterprise market So, two years old enemies competition, and went to the "fight" situation. In 2011, Huawei to further clarify the future development of ideas, from the telecommunications market to enterprise-class consumer marketing. Meanwhile, Huawei recruiting, military expansion of the business BG.
March 2012, Huawei was prohibited from participating in the Australian NBN project bidding, Chambers refused to comment on security issues plagued Huawei, however, he has provided a relatively less direct response, "Huawei has trust issues, money Perth and Australia prohibit Huawei to participate in the NBN project "interesting".
Huawei, based on many years of accumulation, came extremely rapid impact in the enterprise market. In May 6, in Las Vegas Interop2012, the Huawei booth stands in the opposite Cisco, playing the ring. Core switch product line for Huawei exhibited CloudEngine12800 Cisco opponent even shocked, "Cisco a lot of people to Huawei's booth to see the product." Huawei insiders said.
In early June, in Bangalore, India, Cisco vice president AnilMenon finally himself directly, said: "some of the weaknesses of Huawei is very serious, we will be defeated in solutions and innovative Huawei." Cisco executive vice president RobLloyd clear Huawei-questioned the safety of credit, "in the cloud world, privacy and information protection customers are most concerned about, but not Huawei's strengths." Not only RobLloyd, Chambers is more often to "security" issues of Huawei talks about very similar to the view in the U.S. House of Representatives Intelligence Committee report.
U.S. telecom market is still important global market, market the research institutions ABIResearch expected 2013 network infrastructure spending or growth inflection point. But in the field of telecom equipment manufacturers, Motorola, Lucent, Nortel, once North American companies have changed hands, the moment, the world of the top telecommunications equipment suppliers, in addition to Huawei, ZTE, as well as Ericsson, Nokia Siemens, Alcatel Lucent. But these enterprises, and has nothing to do with U.S. companies.
Cisco is losing the war advantage
February 9, 2011, Cisco's earnings, the company's gross profit margin has been four consecutive quarters of contraction, the next day, Cisco shares tumbled, market value has shrunk by 15%. In contrast, Cisco rival Juniper Networks (Juniper) rose 7.6% in the same day.
Chambers said in the earnings release, the main problem faced by Cisco has many excellent new products 'innovation engine' operation is too strong ". Chambers told investors, the Cisco Internet switch "in lower product margins into the market early, then gradually increased profitability. Chambers, Cisco's profit margin growth must be accelerated in order to reverse the deterioration of Cisco's business model trends.
Five years ago, Cisco every $ 1 of business income to get net profit of 27 cents, and now only get 10 cents of net profit. Accounts receivable turnover days in the past two years, has been extended by 20%, which means that Cisco is relying on more favorable payment method to market competition.
The Cisco Performance Report for the fiscal 2011 second quarter ended January 29, 2011, The Cisco operating income grew 6%, reaching $ 10.4 billion, while net profit fell 18%. Quarter on Juniper Networks to compete with Cisco's core business operating income grew 26%, reaching $ 1.2 billion, and its net profit increased by 31%.
Regarding the face of falling profits, Chambers insisted that, overall video business development momentum is gradually strong ", but the Cisco TV set-top box sales fell 29%. The earnings conference Chambers admit Governments in Europe and North America to buy set-top boxes scale as before. Cisco operating income in the short term is expected to grow, but 5%, but Chambers bold adhere to its long-term revenue growth of 12% is expected.
Chambers prophecy is not 2011, Cisco forced to cut 6,500 jobs to reduce the expenditure of $ 1 billion a year. Cisco spokesman said publicly that the layoffs are part of the company's process to continue to simplify, and evaluate the economic part of the environment in some areas of the world.
Next, the situation has not improved this year, the situation is not optimistic, July 23, Cisco again lay off 1,300 people, about 2% of the employees. Cisco's prospects for re-Mengyin Ying.
Cisco history, we look back at 2005, Chambers $ 6.9 billion acquisition of the set-top box manufacturers Scientific Atlanta (ScientificAtlanta),. Cisco planning to combine the company before the acquisition of Linksys home router business unit, to provide the quality of voice and video products for the pay-TV service providers. But Cisco has ignored the changes in the market. The one hand, the U.S. home router market was soon saturated the other hand, Internet TV set-top box functionality quickly added, no longer need a separate similar products.
Slogan from the 2006 Cisco humane Network, Cisco has seen the future of consumer trends, and even carry out a strategic plan, including acquisitions, towards the diversification of the road. But the left and right sudden very small, Cisco is still the traditional enterprise network equipment as a source of cash income.
Cisco's core markets of telecommunications network equipment market, Cisco's share in some key product areas has declined from 60% to 50% or less, in the enterprise-class high-end market, Cisco faces competition from Juniper, Huawei, and Hewlett-Packard, Hewlett-Packard completed in April last year to $ 2.7 billion of mergers and acquisitions on the network equipment maker 3Com. In the field of low-end products, the same competitive pressures faced by companies such as Dell and Huawei. In all of Cisco's competitors, unquestioned, the pressure from Huawei.
Undeniable in the enterprise market, Cisco is still the first, but in addition to what Cisco's growth is not clear.
Not see the future, the cash cow is facing the impact of Huawei's home in the U.S. market and then the fall, I am afraid that the day of the Cisco really worth worrying about.
This report mentions that Cisco is because "there is evidence that Huawei ignore the intellectual property rights of U.S. companies and entities". At this point, all of the report about the accusations of "national security", "Huawei identity" finally fell implement Huawei United States in the name of security, shut out, or because many years ago with Cisco's intellectual property disputes.
According to the "Washington Post" reported the newspaper from a the hands of those who are familiar with the Cisco sales strategy, won seven statements in September 2011 released by Cisco, Huawei national security "as the title for induce customers to stay away from Huawei.
In fact, from 2002 Cisco "stare" on Huawei began, the time of this report comes behind this Cisco a decade-long war with Huawei.
The beginning of the war: intellectual property lawsuit
Careful analysis of the U.S. House of Representatives Permanent Select Committee on Intelligence of the survey report, and indeed for the Cisco meaning of "revisionist".
"Huawei official has denied infringement of the intellectual property rights of other companies Huawei and Cisco lawsuit after Huawei agreed to cancel some of the products on the market, but Huawei still claimed, it did not infringe the interests of the Cisco contrast, Huawei insists their equipment that expert review did not find any patent infringement Cisco. "
Litigation for the year, the report gives a clear and tough attitude: "Huawei's excuse is untenable."
From the Intelligence Committee's investigation proceedings relative to Cisco, Huawei Huawei Cisco litigation statement, Huawei was statement is not consistent, then, Huawei, said some of the equipment will be removed from the market. Second, when Cisco's agreement also contains a Huawei "update and change all allegations of infringement of copyright or intellectual property products.
Finally, the Commission found that, "Huawei denied the claim of infringement of intellectual property rights, and there is no reliable evidence to support Huawei failed to produce any internal documents or evidence to support its argument, the Committee believes that Huawei disregard of the intellectual property rights of other entities."
Cisco and Huawei's intellectual property lawsuit ended two reconciliation year, Cisco sued Huawei infringement is not established. But why revisit the issues at the moment, for Cisco "Revisionist"?
January 24, 2003, the federal court in the Eastern District of Texas, USA, Cisco Huawei software and patent infringement litigation. 77 complaint alleged theft of its source code in a variety of routers and switches, Huawei, product flaws exist similar; allegations also violated at least five patents owned by Cisco router and switch command interface software.
In fact, this is not a sudden lawsuit from data communications products began in 1999, Cisco and Huawei confrontation is inevitable. To Ethernet and other mainstream data products from the access server, router, Huawei has grown rapidly in this area. 2002, Huawei routers, switches market share has almost equal to Cisco, to become its biggest competitors.
Routers, switches and other data products, Cisco inception housekeeping magic, many years of efforts, Cisco's 70% market share in the global data communications. But with the constant introduction of Huawei data communications products to promote as well as the process of internationalization, Cisco apparently felt Huawei threat has spread from China to the world.
2002, is the confidence Huawei preparing a major push into the U.S. market, zhengfei: "valiantly, full of dash across the Pacific. The telecommunications equipment exhibition held in Atlanta in June 2002, is a full range of Huawei data communications products in the U.S. market for the first time officially unveiled. Huawei shows data products, its performance with Cisco products fairly, but 20% to 50% lower prices than rivals. Huawei hard-edged first came to the United States market, the aggressive advertisements placed on the media in the United States: "They only difference is the price."
This June, Huawei American companies set up at the same time, Huawei began with the second largest global data networking company 3Com formal contact and began to set up a joint venture negotiations. U.S. market, Huawei's sales over the previous year to the end of 2002, an increase of nearly 70%, Cisco's dominance of the global network equipment market has not been shaken, but its sales and market share have occurred in the first decline in.
Alleged in the Atlanta exhibition, Cisco CEO John Chambers quietly patronize Huawei booth. Since then, Cisco has quickly established company called "combat Huawei" working group, set up a special home page intranet for its employees around the world to discuss how to combat Huawei and began to prepare for the proceedings. Previously, Cisco has also a blow Juniper "group.
With the advance of Huawei in the U.S. market, the challenge for Huawei products synchronized from Cisco that the The Huawei Quidway routers and Cisco models and have similar technical characteristics, and found there own software on Huawei's software defects.
In January 2003, Cisco sued Huawei, intellectual property litigation began, the war of the two big telecommunications company, turned to the ground, from the ground from Running out to the public.
Huawei has always been low-key, just enter the U.S. market, Huawei less known. Although prior Huawei already know that Cisco is about to prosecute, but all of Huawei's center of gravity on the above respond to the lawsuit. In contrast, Cisco can be described as well-prepared. For example, in the proceedings before Cisco announced an invest 150 million dollars in the global advertising plan, public-relations move colors leaving Cisco to take the initiative. Such as the beginning of the litigation, the U.S. public opinion is almost unanimously recognized Huawei steal something of Cisco, the most famous of several U.S. financial media made affirmative reports Huawei infringement, as well as the media have been suspect Huawei has a military background.
The Cisco litigation Huawei infringed focus, source code infringement; technical files and command interface, Cisco Huawei Cisco apply for a private agreement protection technology in the process of the development of these interfaces.
Third-party experts, the data communications professor at Stanford University expert DennisAllison both an old and a new version of Cisco IOS and Huawei VRP platform were comparative analysis of results: 200 million lines of source code Huawei VRP platform, Cisco IOS 2000 million lines, including Huawei VRP old platform, only 1.9% of the private agreement with Cisco, 2,000,000 software how possible to copy a 10-fold greater than your software? "
March 20, 2003, after negotiations has long Huawei and 3Com joint venture was set up jointly operate research and development, production and sales of data communication products. This is a turning point in Cisco and Huawei lawsuit.
Claflin then testify in court when he was CEO of 3Com Corporation, Huawei's technology and strength is trustworthy. In fact, before the joint venture, 3Com Huawei Technologies management were investigated, because the trust decided to joint venture.
Since then, the two sides repeated evidence, and conducted two hearings, on June 7, the court rejected the request of Cisco's application for an order for the ban Huawei products rejected the ban proposed by Cisco Huawei use command line similar to the Cisco operating software procedures. But enacted a the limited ban: that Huawei router to stop using the controversial software source code, operator interface and online help files, etc..
October 1, 2003, counsel for both parties end than on the work of the source code, proved, Huawei and no infringement. In late July 2004, Cisco and Huawei to reach a final settlement agreement. Huawei does not infringe on Cisco's intellectual property, Huawei has agreed to modify its command-line interface, user manual, help interface and part of the source code, in order to eliminate the doubts of Cisco.
However, this cross in two years at the time the final settlement of the lawsuit, but let Cisco left the "pain". Huawei, Cisco, 3Com Corporation to terminate the litigation of the application submitted to the Eastern District of Texas, United States Court of Marshall Branch Court accordingly issued a decree to terminate Cisco Huawei's lawsuit eventually solve all the controversy since intellectual property cases. This to abort the way, at the same time means that Cisco future no further on the case proceedings or proceedings in respect of the same subject matter.
Although the end of the lawsuit to the reconciliation, but in the past two years, the process of Huawei to enter the United States significantly blocked, put aside a lot of customer contracts. While Cisco did not win the lawsuit, but effectively blocking the road, Huawei.
But Cisco no further on the case proceedings, the to let Cisco thereafter once again faced with the trend of Huawei market's Pozhu of, but can no longer brings up the "litigation" magic weapon.
Cisco therefore shift the battlefield, from the court turned to politics.
10 years of tit-for-tat
Cisco as companies occupy 70% of the U.S. network equipment market, but it has never been the government is its monopoly allegations, by contrast, Microsoft will not be so lucky. This excellent record, can not be attributed CEO Chambers extraordinary diplomatic skills.
After 2003, with Cisco and Huawei business continues to expand, the market areas of competition between the two sides is growing from the switch to the router, extending from the enterprise market to the core equipment market, is the all-round competition of the telecommunications network products. Chambers of Huawei certain alternative "diplomacy", that, since the end of the lawsuit, the moment talks about the Huawei Huawei is Cisco's largest competitors frequent communication to the public, Huawei, how terrible.
In 2007, Cisco CEO John Chambers to visit China, when asked about the opponents, his outspoken, one of which is Huawei. Has been warning Chambers said: "Huawei will be a the Cisco global nightmare.", Especially in the Chinese market in the past few years, Huawei and subsequently Huawei 3Com to Cisco in the Chinese market has brought no small obstacles.
After 2009, Huawei accelerated expansion to the enterprise market So, two years old enemies competition, and went to the "fight" situation. In 2011, Huawei to further clarify the future development of ideas, from the telecommunications market to enterprise-class consumer marketing. Meanwhile, Huawei recruiting, military expansion of the business BG.
March 2012, Huawei was prohibited from participating in the Australian NBN project bidding, Chambers refused to comment on security issues plagued Huawei, however, he has provided a relatively less direct response, "Huawei has trust issues, money Perth and Australia prohibit Huawei to participate in the NBN project "interesting".
Huawei, based on many years of accumulation, came extremely rapid impact in the enterprise market. In May 6, in Las Vegas Interop2012, the Huawei booth stands in the opposite Cisco, playing the ring. Core switch product line for Huawei exhibited CloudEngine12800 Cisco opponent even shocked, "Cisco a lot of people to Huawei's booth to see the product." Huawei insiders said.
In early June, in Bangalore, India, Cisco vice president AnilMenon finally himself directly, said: "some of the weaknesses of Huawei is very serious, we will be defeated in solutions and innovative Huawei." Cisco executive vice president RobLloyd clear Huawei-questioned the safety of credit, "in the cloud world, privacy and information protection customers are most concerned about, but not Huawei's strengths." Not only RobLloyd, Chambers is more often to "security" issues of Huawei talks about very similar to the view in the U.S. House of Representatives Intelligence Committee report.
U.S. telecom market is still important global market, market the research institutions ABIResearch expected 2013 network infrastructure spending or growth inflection point. But in the field of telecom equipment manufacturers, Motorola, Lucent, Nortel, once North American companies have changed hands, the moment, the world of the top telecommunications equipment suppliers, in addition to Huawei, ZTE, as well as Ericsson, Nokia Siemens, Alcatel Lucent. But these enterprises, and has nothing to do with U.S. companies.
Cisco is losing the war advantage
February 9, 2011, Cisco's earnings, the company's gross profit margin has been four consecutive quarters of contraction, the next day, Cisco shares tumbled, market value has shrunk by 15%. In contrast, Cisco rival Juniper Networks (Juniper) rose 7.6% in the same day.
Chambers said in the earnings release, the main problem faced by Cisco has many excellent new products 'innovation engine' operation is too strong ". Chambers told investors, the Cisco Internet switch "in lower product margins into the market early, then gradually increased profitability. Chambers, Cisco's profit margin growth must be accelerated in order to reverse the deterioration of Cisco's business model trends.
Five years ago, Cisco every $ 1 of business income to get net profit of 27 cents, and now only get 10 cents of net profit. Accounts receivable turnover days in the past two years, has been extended by 20%, which means that Cisco is relying on more favorable payment method to market competition.
The Cisco Performance Report for the fiscal 2011 second quarter ended January 29, 2011, The Cisco operating income grew 6%, reaching $ 10.4 billion, while net profit fell 18%. Quarter on Juniper Networks to compete with Cisco's core business operating income grew 26%, reaching $ 1.2 billion, and its net profit increased by 31%.
Regarding the face of falling profits, Chambers insisted that, overall video business development momentum is gradually strong ", but the Cisco TV set-top box sales fell 29%. The earnings conference Chambers admit Governments in Europe and North America to buy set-top boxes scale as before. Cisco operating income in the short term is expected to grow, but 5%, but Chambers bold adhere to its long-term revenue growth of 12% is expected.
Chambers prophecy is not 2011, Cisco forced to cut 6,500 jobs to reduce the expenditure of $ 1 billion a year. Cisco spokesman said publicly that the layoffs are part of the company's process to continue to simplify, and evaluate the economic part of the environment in some areas of the world.
Next, the situation has not improved this year, the situation is not optimistic, July 23, Cisco again lay off 1,300 people, about 2% of the employees. Cisco's prospects for re-Mengyin Ying.
Cisco history, we look back at 2005, Chambers $ 6.9 billion acquisition of the set-top box manufacturers Scientific Atlanta (ScientificAtlanta),. Cisco planning to combine the company before the acquisition of Linksys home router business unit, to provide the quality of voice and video products for the pay-TV service providers. But Cisco has ignored the changes in the market. The one hand, the U.S. home router market was soon saturated the other hand, Internet TV set-top box functionality quickly added, no longer need a separate similar products.
Slogan from the 2006 Cisco humane Network, Cisco has seen the future of consumer trends, and even carry out a strategic plan, including acquisitions, towards the diversification of the road. But the left and right sudden very small, Cisco is still the traditional enterprise network equipment as a source of cash income.
Cisco's core markets of telecommunications network equipment market, Cisco's share in some key product areas has declined from 60% to 50% or less, in the enterprise-class high-end market, Cisco faces competition from Juniper, Huawei, and Hewlett-Packard, Hewlett-Packard completed in April last year to $ 2.7 billion of mergers and acquisitions on the network equipment maker 3Com. In the field of low-end products, the same competitive pressures faced by companies such as Dell and Huawei. In all of Cisco's competitors, unquestioned, the pressure from Huawei.
Undeniable in the enterprise market, Cisco is still the first, but in addition to what Cisco's growth is not clear.
Not see the future, the cash cow is facing the impact of Huawei's home in the U.S. market and then the fall, I am afraid that the day of the Cisco really worth worrying about.
lebelanger - 23. Okt, 08:38
