re: Cisco Circles the Wagons in TexasDid Yakov leave Juniper?? Oh yeah, he left Cisco to go to Juniper. Me thinks this is a telling tea leaf if you know how to read it.
re: Cisco Circles the Wagons in TexasM&A is not a science. Despite what Cisco and other acquirers may say, no one has the magic formula. It's still about getting people to work together. It may be true that older companies are having a tough time in integrating companies, but they are always learning. But that is not what has Cisco and the others in trouble.
In the rush for dominance, all the above bought into the Wall Street mantra of revenue growth. In the end, it cost LU and possibly NT their margins and profitable growth, and CSCO kept on promising high growth rates when there were signs it would keep up. Besides, they are all affected by the rule of big numbers - once you get to a critical mass, it is harder to grow as fast.
Now, Wall Street has changed the tune to profits. CSCO still has them, but not at what the Street expects of them.
In the long run, enough of the cheerleaders (i.e. McGinn, Roth, Chambers, et al) and more of real leaders who grow a business responsibly. They were led by the nose by Wall Street anyway.
re: Cisco Circles the Wagons in Texas'Whatever Cisco's faults, they are still in far better shape than the old fart telecom companies.'
As an ex old fart I beg to differ. When times get tough the old farts with quality and service tend to win out (growth may not be 50% but revenues are still several billions). When there are a lot of new providers which can't afford the quality, technology wins out. When there is time to plan for the future the sure bet gets the business.
re: Cisco Circles the Wagons in Texas"The important thing to note for juniper's future is that they still are leveraging their original product (the m40) in new forms. They have yet to prove that they can expand their business into new areas or even complete a true new product transition. The rate of innovation at juniper isn't all that high and many of their best people are gone (to procket and elsewhere)."
In the mean time they're killing Cisco in the only market where Cisco was truely a leader. I don't see much innovation coming from Cisco either.
re: Cisco Circles the Wagons in TexasThere aren't more layoffs... earlier CSCO announced layoffs, recently they announced what the numbers for those layoffs would be (8500).
Chambers has specifically said that if he has to cut, he wants to cut once and not destroy moral by pulling a Nortel and cutting another 5000 every 3 weeks.
You write: "Chambers has specifically said that if he has to cut, he wants to cut once and not destroy moral by pulling a Nortel and cutting another 5000 every 3 weeks."
The word is morale! I won't comment on their morals...
re: Cisco Circles the Wagons in TexasSteve I only mentioned the sale/marketing/forecast of the problem because I did not have time to stay on the Net. Fundamentally Nortel is stronger than Cisco right now and I believe even stronger when the Perfect Storm of networking end. Nortel is strong and well positioned in all growth sectors of networking infrastructure that Cisco targeted :optical,wireless,VOIP,traffic management/content delivery networking and will focus on the metro/access market this year(Local Internet, OPTera Packet Edge,Optical Ethernet)to leverage its strength in core market(FiberOptics/Passport) to reduce the bottleneck and feed their Inter-city optical networking business. Their upper management is top notch so far, especially in execution and I expect something big coming soon with the OPTera Packet Core (OPC) I am waiting to see your article.
In the rush for dominance, all the above bought into the Wall Street mantra of revenue growth. In the end, it cost LU and possibly NT their margins and profitable growth, and CSCO kept on promising high growth rates when there were signs it would keep up. Besides, they are all affected by the rule of big numbers - once you get to a critical mass, it is harder to grow as fast.
Now, Wall Street has changed the tune to profits. CSCO still has them, but not at what the Street expects of them.
In the long run, enough of the cheerleaders (i.e. McGinn, Roth, Chambers, et al) and more of real leaders who grow a business responsibly. They were led by the nose by Wall Street anyway.
As an ex old fart I beg to differ. When times get tough the old farts with quality and service tend to win out (growth may not be 50% but revenues are still several billions). When there are a lot of new providers which can't afford the quality, technology wins out. When there is time to plan for the future the sure bet gets the business.
In the mean time they're killing Cisco in the only market where Cisco was truely a leader. I don't see much innovation coming from Cisco either.
Chambers has specifically said that if he has to cut, he wants to cut once and not destroy moral by pulling a Nortel and cutting another 5000 every 3 weeks.
You write: "Chambers has specifically said that if he has to cut, he wants to cut once and not destroy moral by pulling a Nortel and cutting another 5000 every 3 weeks."
The word is morale! I won't comment on their morals...
Tink
I only mentioned the sale/marketing/forecast of the problem because I did not have time to stay on the Net. Fundamentally Nortel is stronger than Cisco right now and I believe even stronger when the Perfect Storm of networking end. Nortel is strong and well positioned in all growth sectors of networking infrastructure that Cisco targeted
:optical,wireless,VOIP,traffic management/content delivery networking and will focus on the metro/access market this year(Local Internet, OPTera Packet Edge,Optical Ethernet)to leverage its strength in core market(FiberOptics/Passport)
to reduce the bottleneck and feed their Inter-city optical networking business. Their upper management is top notch so far, especially in execution and I expect something big coming soon with the OPTera Packet Core (OPC)
I am waiting to see your article.
They'll go for the more humane atmosphere.