& cplSiteName &

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 HP Inc. (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. 
Featured Video
From The Founder
Light Reading is spending much of this year digging into the details of how automation technology will impact the comms market, but let's take a moment to also look at how automation is set to overturn the current world order by the middle of the century.
Flash Poll
Upcoming Live Events
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 2, 2017, 8 Northumberland Avenue – London
November 10, 2017, The Westin Times Square, New York, NY
November 16, 2017, ExCel Centre, London
November 30, 2017, The Westin Times Square
May 14-17, 2018, Austin Convention Center
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Is US Lurching Back to Monopoly Status?
Carol Wilson, Editor-at-large, 10/16/2017
Muni Policies Stymie Edge Computing
Carol Wilson, Editor-at-large, 10/17/2017
'Brutal' Automation & the Looming Workforce Cull
Iain Morris, News Editor, 10/18/2017
Pai's FCC Raises Alarms at Competitive Carriers
Carol Wilson, Editor-at-large, 10/16/2017
Worried About Bandwidth for 4K? Here Comes 8K!
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 10/17/2017
Animals with Phones
Selfie Game Strong Click Here
Latest Comment
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.

Like Us on Facebook
Twitter Feed
Partner Perspectives - content from our sponsors
The Mobile Broadband Road Ahead
By Kevin Taylor, for Huawei
All Partner Perspectives