In response to Cisco System’s annual financial conference held December 4, 2009, and the current financial and economic situation of Cisco Systems, this memorandum analyzes the forces driving Cisco’s current resources, plan for growth, and competition.
Cisco Systems competitors are primarily in the computer networking equipment industry. Cisco Systems competes in other industries as well including: server and mainframes, satellite and broadcast network equipment, and wireless telecommunications equipment. Three of Cisco System’s main competitors can be identified as Alcatel-Lucent, supplier of high-tech equipment; Hewlett-Packard, comprehensive provider of hardware, ...view middle of the document...
[iii]The tech companies that will succeed in the next 10 years and remain successful are those that are best positioned to react to the massive shifts in the way consumers and businesses use technology. Coupled with continued growth through mergers and acquisitions, Cisco should expand into data integration and consumer market to best position itself as a technology firm for the future.
Cisco’s recent acquisition of Tandberg, provider of tele-presence and high definition video conferencing, has shown Cisco’s move to better position itself in the video sector. Cisco has the opportunity to change telecommunications with the evolution of a unified collaboration market. As a result of Cisco’s effort, fewer large-scale providers will dominate the new market. With the acquisition of Tandberg, Cisco is positioning itself to create a single market for unified communications and collaboration. Using Metcalfe’s law, which states the value of a network grows exponentially with an increase in connected users (endpoints), can be applied to the value proposition of Cisco as a collaborative vendor. [iv] (See exhibit 1)
Cisco debuted its Borderless Networks archetype on October 20, 2009, with a vision to help deliver services and applications to anyone, anywhere, and on any device. [v] Cisco will be able to capitalize on the growing importance of making virtual services remotely deployed and managed. The new Borderless Networks architecture saves energy cost using Cisco’s Energywise. According to the Marketwire Report, “With Borderless Networks, information technology managers can more easily manage, scale, govern and protect networks while tightening the synergy between users, devices, applications, and business processes”.[vi]
With complete end-to-end connectivity questions arise for Cisco regarding how to limit access to resources? Cisco must ensure a way to prevent remote home desktops from copying information from offices. Products exist to provide comprehensive security; however, the problem focuses on the scale needed to protect the borderless network design. [vii] A secure IT infrastructure is needed to end the recession and address healthcare and environmental issues. Thus, IT infrastructure and cyber security is a growing concern of the government. On May 29, 2009, President Obama pledged to make securing the nations most vital networks a top economic and national security priority. [viii] Government participation will increase the regulation and security initiatives of Cisco.
Cisco has been able to identify that corporations, individual users and telecom companies that provide Internet, mobile, and other data services are interlinked. [ix] Software technology, which uses a physical resource such as a server and divides it up into virtual resources, called virtual machines, provides server virtualization. Virtualization dramatically improves the efficiency and availability of resources and applications for...