A Bright Future
This year, thanks to the still-sluggish economy, Cisco’s financial performance is down. But Chambers thinks that’s only a blip in the grand scheme of things. He points out that Cisco has emerged from every economic downturn of the past two decades stronger and more flexible. During the most recent downturn, Cisco moved quickly, seizing every opportunity to snatch up businesses and develop new products. During the decade of the 2000s, Cisco acquired 48 venture-backed companies. But last year alone, the company announced an astounding 61 new technologies, all focused on collaboration. With these resources—and $44 billion in cash that it has stowed away— Cisco is now expanding into 30 different markets, each with the potential to produce $1 billion a year in revenue. Moving forward, the company has committed to adding 20 percent more newmarket businesses annually. And because Cisco enters a newmarket only when it’s confident that it can gain a 40 percent share, the chance of failure is far below normal. The collaboration market is estimated at $35 billion, a figure that will grow substantially in years to come. Because Cisco is the leader in this emerging industry, analysts have no problem accepting John Chambers’s long-term goal of 12 to 17 percent revenue growth per year. Cisco has demonstrated that it has the product portfolio and the leadership structure necessary to pull it off. One thing is for sure. Cisco is no longer just a plumber, providing the gizmos and gadgets necessary to make the Internet go around. It is a networking leader, a core competency that will certainly make it a force to be reckoned with for years to come.
อนาคตที่สดใส This year, thanks to the still-sluggish economy, Cisco’s financial performance is down. But Chambers thinks that’s only a blip in the grand scheme of things. He points out that Cisco has emerged from every economic downturn of the past two decades stronger and more flexible. During the most recent downturn, Cisco moved quickly, seizing every opportunity to snatch up businesses and develop new products. During the decade of the 2000s, Cisco acquired 48 venture-backed companies. But last year alone, the company announced an astounding 61 new technologies, all focused on collaboration. With these resources—and $44 billion in cash that it has stowed away— Cisco is now expanding into 30 different markets, each with the potential to produce $1 billion a year in revenue. Moving forward, the company has committed to adding 20 percent more newmarket businesses annually. And because Cisco enters a newmarket only when it’s confident that it can gain a 40 percent share, the chance of failure is far below normal. The collaboration market is estimated at $35 billion, a figure that will grow substantially in years to come. Because Cisco is the leader in this emerging industry, analysts have no problem accepting John Chambers’s long-term goal of 12 to 17 percent revenue growth per year. Cisco has demonstrated that it has the product portfolio and the leadership structure necessary to pull it off. One thing is for sure. Cisco is no longer just a plumber, providing the gizmos and gadgets necessary to make the Internet go around. It is a networking leader, a core competency that will certainly make it a force to be reckoned with for years to come.
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