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Chambers: Cisco will become the number 1 IT company

John Gallant | July 23, 2013
Cisco boss talks about how SDN fits into its architecture, what Insieme is all about and why the Internet of Everything matters to IT pros.

That's where people get confused. IBM did a huge amount of work on big data analytics, but how do they get it?  Is it going to be made in the cloud or is it going to be made throughout this intelligent architecture network? But could we be their best partner in loading stuff into the data center? Good question. Absolutely. But we will make the decisions in a way that allows all of you to put in the data center [only] the information you need.

Over time, self-learning networks will be the next-generation, where network decisions will be made remotely based on either applications or what's going on in the network to prioritize stuff for security. If you haven't even thought about programmability at the edge of the network, if you haven't thought about the routing [protocols] for that, if you thought about BYOD, cloud, mobility, SDN, NFV, the cloud implementation, the data center architecture that includes servers, routing, switching, the software that goes with that, and storage, then you can't really take advantage of the Internet of Everything at the speed we're going to. Put a different way, that's a hard hand to beat.

You're a customer, and I sit down in front of the CEO or CIO, walk through what we just did with facts and show what's behind it, that's why this last quarter we gained market share in nine of the 10 biggest product areas we had. I've never done that in the history of Cisco, ever.  It wasn't 0.1% market share gains. There were large gains in a really tough market. It's actually exciting because if you believe in what we're saying and you can educate your users, this could be what gets IT spending going again. Candidly, selfishly speaking, it could be real good for Cisco. So we both have the same interest.

Talk about Cisco in the consumer market, what is the strategy today.
Consumer-to-consumer, we're out. So this goes back to what we do better than anyone else: we are remarkably disciplined. Market transitions, customer-driven, when you see it occur, that's where we do innovation. Innovation to build, find partners and integrate.

That's what cranks at Cisco remarkably well. We don't enter markets where we don't have sustainable differentiation, where we can't get at least 40% market share within that scenario and it doesn't tie tightly to our network. We missed our window on areas such as Flip, and even Linksys. We thought there would be more consumer-to-consumer, and we made the mistake of getting too fascinated with the device. I love my Flip camera. But it was about FlipShare in the cloud to any smartphone, we would have outmaneuvered Apple. And my team just missed it, shame on me for not catching it. So once you miss a transition they wait for no one. That's why, out of the top six IT players in the world, three of them will not be there definitely in 10 years and maybe not in five. That's how fast this market's going to be once we start. My business for the consumer will be business-to-consumer, service provider-to-consumer, Walmart-to-consumer, Amazon-to-consumer, as opposed to consumer-to-consumer.


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