Light Reading

Cisco's Chambers Predicts 'Brutal' Tech Consolidation

Mitch Wagner
5/20/2014
50%
50%

SAN FRANCISCO -- CiscoLive -- Tech companies will see "brutal, brutal consolidation," with most of today's leaders falling, Cisco CEO and Chairman John Chambers said at his keynote here Monday.

"If you look at the top companies in the industry, most of them will not exist in a meaningful way in 10 years," Chambers said. "You're going to see a brutal, brutal consolidation of the IT industry." He singled out Hewlett-Packard Co. (NYSE: HPQ) and IBM Corp. (NYSE: IBM) as two companies that have failed to produce revenue.

Companies that produce standalone products rather than complete architectures will be in trouble, Chambers said. "This is where individual companies will get squeezed between Cisco and white labels."

Cisco Systems Inc. (Nasdaq: CSCO), which has its own problems, has a plan for bouncing back, based on leading in SDN, collaboration, cloud, and Internet of Everything. Cisco plans to be number one in all those markets, Chambers said. (See Cisco Earnings Suffer From Carrier Weakness.)

As part of its collaboration strategy, Cisco on Monday introduced two new devices designed to bring affordable, high-quality videoconferencing to the desktop. The DX80 is a high-performance videoconferencing system that doubles as a computer monitor, while the DX70 has a smaller display with the same videoconferencing hardware. (See Cisco Wants to Tidy Up Desktop Videoconferencing.)

Cisco's Application Centric Infrastructure (ACI) is core to its SDN strategy. "We will be the best implementation of SDN in the world," Chambers said. As part of ACI, Cisco introduced its WAN Automation Engine Sunday and tools for integrating virtual and physical networks on Friday. Also on Sunday, top Cisco executives discussed how SDN can help cut costs, increase agility and revenue for enterprises and service providers. (See Cisco Intros Automated WAN Management, Cisco Integrates Virtual, Physical Networks, and Cisco Drops the S-Bomb.)

And Intercloud, a network of clouds built by Cisco and service provider partners, is key to Cisco’s cloud strategy, driving Cisco from top private cloud vendor to top of hybrid cloud, Chambers said. (See Cisco's Cloud Bet: What's in It for SPs?.)

Jim Grubb, Cisco chief demonstration officer, took the stage to show how the Internet of Everything can be used to improve railroad performance, achieving, it is claimed, 40% more usage out of existing tracks with increased safety. These kinds of improvements will be available for every form of transportation, Chambers said.

Alan Matula, executive vice president and CIO of Royal Dutch Shell, then joined Chambers to describe how that company is working with Cisco to improve shale oil mining, which requires drilling hundreds of wells. Cisco helps Shell collect information about those wells to improve efficiency.

— Mitch Wagner, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profileFollow me on Facebook, West Coast Bureau Chief, Light Reading. Got a tip about SDN or NFV? Send it to wagner@lightreading.com.


Want to learn more about SDN and the transport network? Check out the agenda for Light Reading's Big Telecom Event (BTE), which will take place on June 17 and 18 at the Sheraton Chicago Hotel and Towers. The event combines the educational power of interactive conference sessions devised and hosted by Heavy Reading's experienced industry analysts with multi-vendor interoperability and proof-of-concept networking and application showcases. For more on the event, the topics, and the stellar service provider speaker lineup, see Telecommunication Luminaries to Discuss the Hottest Industry Trends at Light Reading's Big Telecom Event in June.


(7)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
thebulk
50%
50%
thebulk,
User Rank: Light Sabre
5/22/2014 | 1:34:11 AM
Re: Maybe for some
It could carry them to acquisition or it can allow them to lay a foundation which will allow them to build on it and grow into a company which offers a full solution based around that single product. 
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
5/21/2014 | 9:51:18 PM
Re: Maybe for some
thebulk - Indeed, a single product, if it's successful, can carry a compay to acquisition. 
thebulk
50%
50%
thebulk,
User Rank: Light Sabre
5/21/2014 | 8:15:16 AM
Re: Maybe for some
To be fair, I do not think they will survivie with a single product, but I think in some cases it might be enough to get then off the ground and they can focus on a total picture down the road. I see a lot of this happening in the IoT space now, many people in the wearable and home automation space are coming out with a single product, if they are able to develop a strong user base they can then move on to a total solution. 
DOShea
50%
50%
DOShea,
User Rank: Blogger
5/20/2014 | 9:53:06 PM
Deja vu
Weren't the big end-to-end telecom vendors predicting the demise of standalone solutions 10 years ago? 15 years ago? All of the above? Doesn't that kind of thinking overlook the value of partnerships?
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
5/20/2014 | 12:19:26 PM
Re: Maybe for some
thebulk - What are some examples of single-product BtoB tech companies that seem likely to survive and thrive?
mendyk
100%
0%
mendyk,
User Rank: Light Sabre
5/20/2014 | 9:06:21 AM
Plus ca change etc.
The world will change? Wow -- this 21st century is a trip. Speaking of trips, let's hope Cisco does better than Mussolini in getting the trains to run on time.
thebulk
50%
50%
thebulk,
User Rank: Light Sabre
5/20/2014 | 8:28:56 AM
Maybe for some
I am sure this will happen with some companies, but there are some where a single product is enough to get them rolling and they can worry about offering up a more complete picture down the road without fear of being squeezed out. My thoughts anyway. 
Flash Poll
From The Founder
Anshul Sadana answers questions from Steve Saunders, Light Reading's founder and CEO, about Arista's CloudVision, a global cloud network controller for workload orchestration and workflow automation delivering a turnkey solution for cloud networking.
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
LRTV Custom TV
End-User or Enterprise Benefits to the New IP

7|30|15   |   04:27   |   (0) comments


Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
LRTV Custom TV
Network Visibility & the New IP

7|30|15   |   02:23   |   (0) comments


Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
Between the CEOs
Video Exclusive With Basil Alwan, Alcatel-Lucent

7|24|15   |   26:44   |   (5) comments


Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
LRTV Custom TV
VDF: Enable the Financial With Mobile Money

7|20|15   |   06:53   |   (0) comments


Ian Ravenscroft discusses how operators can expand to occupy the entire digital services value chain through service innovation.
LRTV Custom TV
Telefónica on OSS Transformation

7|20|15   |   06:01   |   (0) comments


Jose Gonzales discusses the details of Telefónica's operation transformation program.
LRTV Custom TV
Judi Achmadi on Huawei's Cloud Storage Solution

7|20|15   |   03:33   |   (0) comments


Judi discusses the key business goals of TelekomSigma's public cloud service and how Huawei's solution helps them address challenges.
LRTV Custom TV
KPN Enlightening Digital Business & IT Transformation

7|20|15   |   06:19   |   (0) comments


Rob de Beer discusses the changes that operators need to make with service innovation now coming from the Internet world.
LRTV Custom TV
Stratus Telco-Grade Cloud Solutions & NFV

7|20|15   |   07:34   |   (0) comments


Ali Kafel from Stratus Technologies addresses high-availability concerns within the telco industry with a solution that enables telcos to provide high-availability and stateful fault-tolerance using a software-based approach.
LRTV Documentaries
The Six Million Dollar Business Man

7|20|15   |   01:52   |   (0) comments


Steve Saunders, publisher. A man barely alive after an acquisition malfunction imploded the company he founded. Gentlemen, we can rebuild Light Reading. Better, faster, stronger.
Between the CEOs
CEO Chat With Anukool Lakhina, Guavus

7|20|15   |   38:51   |   (1) comment


Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
LRTV Custom TV
IBM's Flash Storage With Intel QuickAssist

7|20|15   |   03:18   |   (0) comments


Intel's Bev Crair and IBM's Eric Herzog discuss how IBM's V9000 Flash Storage System has helped customers around the world. Featuring real-time compression powered by Intel QuickAssist Technology, the V9000 is a next-gen flash storage solution.
LRTV Huawei Video Resource Center
Thailand's AIS: Transforming to an FMC Operator

7|17|15   |   4:53   |   (0) comments


Saran Phaloprakarn, Senior VP of Fixed Broadband Business Management of Thailand's AIS, was a keynote speaker at the first Asia-Pacific Ultra Broadband Summit in Bangkok. In this video, he talks to Heavy Reading about transforming into an FMC (FBB+MBB+Content) operator.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
December 1, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Network operators start seeing savings from NFV in the first year, according to a study by Affirmed Networks and ACG.
Hot Topics
AT&T U-verse TV Hits the Skids
Alan Breznick, Cable/Video Practice Leader, 7/24/2015
Robbins Succeeds Chambers as Cisco Changes CEOs
Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/27/2015
RJio to Launch Its Own 4G Devices Brand
Gagandeep Kaur, Contributing Editor, 7/27/2015
Qualcomm Wants FCC to Stay Out of LTE-U Fray
Sarah Thomas, Editorial Operations Director, 7/27/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
Cats with Phones
Distract-a-Cat Click Here
The vibrate function makes for a useful cat distraction.