Skip to main content

Cisco reorganizes to streamline business

Cisco John Chambers
Image used with permission by copyright holder

Networking giant Cisco is best known for building a lot of the backbone gear on which the Internet has been built, like routers, switches, hubs, and other key components of network architecture—the kinds of things that make data centers and cloud computing possible. The massive growth of the Internet would seem to put Cisco in a secure business position, but the reality is that the company faces significant competition from the likes of Hewlett-Packard, Juniper, and Arista—and now the company has announced a broad reorganization designed to streamline its operations, cut costs, and bring products and services to market more quickly.

“Cisco has driven transformational change before, and we are again transitioning to the next stage of the company’s evolution,” said Cisco chairman and CEO John Chambers, in a statement. “Today, the market is driving toward simplification and it’s why the network matters. Our role as the leading network platform provider is strong, we have great customers, talent, and expertise—and we know how to bring innovation to every aspect of the network.”

Under the new organization, Cisco will focus on five key areas: routing, switching, and services; collaboration; data center virtualization; architecture; and video. Cisco describes these five areas as the “drivers of the future of the network” and the areas where companies will look to Cisco for solutions and leadership. The company expects the bulk of the reorganization to be completed in the next 120 days, with a new sales organization up and running by July 31, 2011, in time for the start of Cisco’s next fiscal year.

Cisco has not announced whether the changes will result in layoffs or executive-level departures; however, the shakeup seems oriented on enabling Cisco to compete more effectively in many markets—and that will mean trimming expenses like employee salaries. Many of the changes focus on streamlining Cisco’s management structure and will eliminate many of the company’s internal “councils,” which have historically been criticized for adding layers of bureaucracy to Cisco’s decision-making. CEO Chambers has warned the company will face “tough decisions” about where to make spending cuts.

The moves come in the wake of Cisco abruptly killing off its Flip consumer camcorder business—although it’s tempting to say Flip died because consumers are increasingly shooting video with smartphones and other devices, it’s probably closer to the truth to say that Cisco just doesn’t know how to operate in the consumer space: the bulk of Cisco’s clients are enterprises, governments, campuses, and service providers.

Editors' Recommendations

Geoff Duncan
Former Digital Trends Contributor
Geoff Duncan writes, programs, edits, plays music, and delights in making software misbehave. He's probably the only member…
How to do hanging indent on Google Docs
Google Docs in Firefox on a MacBook.

The hanging indent is a classic staple of word processing software. One such platform is Google Docs, which is completely free to start using. Google Docs is packed with all kinds of features and settings, to the point where some of its more basic capabilities are overlooked. Sure, there are plenty of interface elements you may never use, but something as useful as the hanging indent option should receive some kind of limelight.

Read more
How to disable VBS in Windows 11 to improve gaming
Highlighting VBS is disabled in Windows 11.

Windows 11's Virtualization Based Security features have been shown to have some impact on gaming performance — even if it isn't drastic. While you will be putting your system more at risk, if you're looking to min-max your gaming PC's performance, you can always disable it. Just follow the steps below to disable VBS in a few quick clicks.

Plus, later in this guide, we discuss if disabling VBS is really worth it, what you'd be losing if you choose to disable it, and other options for boosting your PCs gaming performance that don't necessarily involve messing with VBS.

Read more
How to do a hanging indent in Microsoft Word
A person typing on a keyboard, connected to a Pixel Tablet.

Microsoft Word is one of the most feature-rich word processing tools gifted to us human beings. In fact, the very word “Word” has invaded nomenclature to the point where any discussion of this type of software, regardless of what the product is actually called, typically results in at least one person calling the software “Word.”

Read more