Cisco's John Chambers, a long-time Republican, is starting to believe that Donald Trump will become the next US president.John Kasich, but Kasich pulled out of the race in early May after failing to win any state but his own.Chambers has always been an outspoken Republican, but he's feeling less and less aligned with his GOP.If you have to bet on momentum right now, candidly, it's going to be Trump.And that might not be the best answer for America.It sounded more like resignation.Chambers then tried to frame it all as a lesson in leadership about how to be rise to the occasion when the going gets tough.NOW WATCH: A SpaceX rocket just did something not even its engineers thought was possibleLoading video...
Cisco's legendary engineers that run Cisco's most important business unit are being moved to advisory roles within the company, reports Recode's Arik Hesseldahl.And with that move, CEO Chuck Robbins has officially squirmed out from under the long shadow of his predecessor, John Chambers, currently executive chairman.That's because these engineers – Mario Mazzola, Prem Jain, and Luca Cafiero – were responsible for nearly all of the company's major new products via Chamber's unusual "spin-in" financing.A "spin-in" is where Cisco was the sole investor in their companies with a pre-arranged agreement that Cisco would buy their company once the product was complete.Over the previous 20 years, Chambers has funneled $2.38 billion to them and their teams via these "spin-ins."These engineers were running Cisco's Insieme team, the last spin-in to be acquired and the unit responsible for Cisco's flagship network product, the Nexus 9000.When Robbins took over as CEO about a year ago, many people old us that he hadn't really grabbed the power center of the company because these engineers continued to report to Chambers.We also heard rumblings that the engineers could soon be working on another product for Cisco, but Robbins publicly said he had no plans to do more spin-ins.The spin-ins were controversial within the company and created a culture of have and have-nots between employees selected to work on those teams and get those big financial rewards, and those who weren't, some Cisco engineers complained.Since he took over, Robbins has been systematically reorganizing the company, putting his own people in all the key spots.In March, he reorganized into new business units to pursue new growth areas for Cisco.Robbins also announced that David Goeckler, a senior VP who ran Cisco's security business, has been promoted to run the enterprise networking group.Long-time engineering leader leader Pankaj Patel announced he was retiring in January.Cisco could not be immediately reached for comment.NOW WATCH: An in-wall vacuum makes sweeping so much easierLoading video...
The team, known as MPLS, led startups that Cisco acquired for key technologiesCredit: Stephen LawsonFour Cisco Systems executives who led spin-in ventures that became important parts of the company have resigned.The move was first reported by the Wall Street Journal.Engineers Mario Mazzola, Prem Jain and Luca Cafiero, and marketer Soni Jiandani, nicknamed MPLS after their first initials, started several companies with Cisco s backing that later were absorbed back into the networking giant.More than once, Cisco invested in startups spearheaded by MPLS and then acquired those companies.That was under former CEO John Chambers, who stepped down last year after 20 years leading the company.He is still Cisco s chairman, and MPLS continued to report to Chambers after Robbins succeeded him, sources told Network World last August.
A group of Cisco's top engineers, often called the "heart, soul, and brains" of the company, has just resigned, following a management shake-up last week.According to the WSJ, Mario Mazzola, Prem Jain, Luca Cafiero, and Soni Jiandani, internally called the MPLS team based on the first letters of their names, will leave Cisco effective June 17.Mazzola, Jain, Cafiero, and Jiandani were some of the most powerful engineers at Cisco, leading an R effort called the "spin-in" at the company.Cisco's ex-CEO, John Chambers, poured billions of dollars into startups launched by them, under a prearranged agreement that Cisco would buy their company once the product was complete.Once the most trusted engineering groups under Chambers, the MPLS team has lost some of its influence after current CEO Chuck Robbins took over, as three of them were relegated to advisory roles in a reorganization announced last week.The internal memo cited by the WSJ said that their decision to leave "is based on a disconnect regarding roles, responsibilities and charter that came to light immediately after the announcement," indicating that there might have been tension brewing between Robbins and the four now departed executives.As Business Insider's Julie Bort previously reported, the four MPLS team members continued to report to Chambers, even after Robbins became CEO.They were also reportedly causing some controversy within the company, as some employees complained about the big financial rewards they were getting.Robbins said in a statement:I want to recognize Mario, Prem, Luca, and Soni for the countless contributions they have made to Cisco.I have personally learned so much from them, and they will always be an important part of Cisco's engineering story.Their legacy will live on through our ongoing innovation and the talented engineering leaders they have mentored.I wish them the best.You can read more about the MPLS team here.NOW WATCH: Engineers have created edible electronics that taste like cheeseLoading video...
Updated Last week, a Cisco reorganisation switched three of its big names to advisory roles: this week, they've left the company.The individuals involved are Mario Mazzola, Prem Jain, Luca Cafiero, and Soni Jiandani were referred to as MPLS within the company Cisco was an early contributor to the protocol of the same acronym .Under previous CEO John Chambers, Mazola, Jain and Cafiero were responsible for a number of spin-in acquisitions stretching back to the 1990s: they would set up a company with Cisco financing to develop products, and get wrapped back into the company once they'd shown results.Marketwatch quotes an internal memo from Robbins that a disconnect regarding roles, responsibilities and charter … came to light immediately after the announcement .In May, Robbins had to put a brave face on flat revenue across the whole company, with switching down three per cent year-over-year for the quarter ending in April, and routing down by five per cent.Cisco has contacted The Register to confirm that all four in MPLS are leaving on June 17.
There's still a lot of rumor and speculation as to what exactly went down between Cisco CEO Chuck Robbins and one of its long-time star engineers who recently resigned, Mario Mazzola.After agreeing to move out of an operational role and become an advisor to the company, Mazzola instead publicly quit, and was joined by his top team of two other star engineers, Luca Cafiero, Prem Jain, and their top marketing exec, Soni Jiandani, who also quit Cisco in solidarity.Jiandani quit even after agreeing to a big promotion.It was Chambers' method of keeping them from leaving to do startups outside of Cisco.Many people told us this spin-in model caused a lot of resentment inside Cisco among the engineers who were not chosen for the spin-in teams, and not eligible for huge bonuses for building their products.Defending the Spin-InIn his parting email to the troops, Mazzola defended the spin-in model."The second-time was differentThe change to their compensation came with the second company, Nuova, which brought Cisco into a new market, computer servers."Nuova started not as a directed spin-in, but initially as an independent company with myself along with Prem, Luca, and Soni as some of the primary investors in the summer of 2005.Roughly a year after we had started Nuova, in summer of 2006, John Chambers approached the team and asked if Cisco could act as the primary and exclusive source of additional funding for the project.His CEO of the past year, Chuck Robbins.Read into that what you will.NOW WATCH: Here s your first look at 'Battlefield 1 — the life-like war game that blew up on YouTubeLoading video...
With smart home devices constantly increasing in popularity, Telstra has opted to join the digital home revolution by announcing a new platform focusing on smart security, energy, automation and more.Working in conjunction with the leading global smart home solutions provider, Icontrol Networks, Telstra is looking to "build a simple, flexible platform that will work across multiple devices and operating systems to deliver a single solution for the home," said John Chambers, Executive Director Home and Premium Services.This all-in-one solution is being prepared for a late 2016 launch, and is being designed to support a huge range of Internet of Things products.Home is where the smart isTelstra Smart Home will encompass two packages: the 'Watch and Monitor' option will let people keep an eye on their homes with cameras, sensors and alerts, while the 'Automation and Energy' option will allow customers to tailor their own energy consumption with smart power plugs and motion sensors.Right now, Telstra is focused on what its customers want out of smart home integration, with Chambers stating that the company is "keeping an eye on the future so that we can integrate with emerging technologies and services, such as in-home health care, dynamic energy management and entertainment."If you live in Melbourne and are curious about what the telco has up its sleeve, you can check out Telstra Smart Home's first public display at the Technology and Gadget Expo happening this weekend at the Melbourne Convention and Exhibition Centre.
As Maroon 5 serenaded the Cisco Live 2016 delegates with a surfeit of their breezy pop tunes on Wednesday evening, the curtain closed on the first Cisco Live in decades with a new CEO in charge of the company.John Chambers s successor Chuck Robbins took over the helm of the company in July last year, and his keynote at Cisco s flagship event ticked many of the old John Chambers boxes.Amongst these was a reiteration of the transformative potential of technology, saying that successful digital transformation would require C-level sponsorship.Yet behind this rhetoric, what direction is he taking the company in?A more specific focus in the keynote was security, and Cisco used the event to roll out a range of new security products.There were five new products announced, all of which focus on securing enterprises that have multiple branches or employees working remotely.
MoreThe Cisco Systems logo is seen as part of a display at the Microsoft Ignite technology conference in Chicago, Illinois, May 4, 2015.SAN FRANCISCO Reuters - Cisco Systems Inc said it would cut nearly 7 percent of its workforce, posting charges of up to $400 million in its first quarter, as the world's largest networking gear maker shifts focus away from its legacy hardware towards higher-margin software.The gradual move to fast-growing sectors such as security, the Internet of Things and the cloud is a response to sluggish demand for Cisco's traditional lineup of switches and routers from telecom carriers and enterprise customers, amid intense competition from companies such as Huawei and Juniper Networks Inc.Revenue at the company's routers business fell 6 percent in the fourth-quarter ended July 30, while switching unit revenue was up 2 percent.Orders from service providers fell 5 percent, while revenue in emerging markets fell 6 percent, Cisco said.Cisco projected flat revenue in the first quarter and gave an earnings forecast that was shy of analysts' estimates, saying it expected adjusted earnings of 58 cents to 60 cents per share, versus Wall Street estimates of 60 cents.
Cisco Systems is going to be much leaner by the end of the summer as the networking-equipment giant is to layoff 14,000 employees, or close to 20 percent of its workforce.The technology news publication CRN first reported the job cuts late Tuesday citing sources close to the company as saying Cisco would implement the layoffs over the next few weeks.It would be be the biggest one-time job cut in Cisco s history.Cisco had around 73,000 employees at the end of April, according to a Securities and Exchange Commission filing.The layoffs also stand to be the biggest imprint of Chuck Robbins tenure as Cisco s chief executive.Robbins, who took over from longtime Cisco CEO John Chambers in July 2015, has been working to move Cisco more into software, services and cloud-based networking and security technologies as the company s bellwether hardware business has shown signs of slowing down in recent years.The report of Cisco s big job cuts will also lend some excitement to the company s fiscal fourth-quarter results, due after the stock market closes Wednesday.Analysts surveyed by Thomson Reuters have forecast Cisco to earn 60 cents a share, excluding one-time items, on revenue of $12.6 billion for the period that ended in July.During the same quarter a year ago, Cisco earned 59 cents a share on $12.8 billion in sales.Announcing the layoffs at the same time of its fiscal fourth-quarter results wouldn t be unprecedented for Cisco, as the company implemented layoffs at the end of its 2014 and 2013 fiscal years, and at the end of the other past fiscal years.Cisco would also be the latest Bay Area tech titan to put big job cuts into effect in the last year, following HP Inc., which in September 2015 said it would cut 33,000 jobs over a three-year-period, and Intel s announcement in April that it would shed 12,000 jobs this year.Cisco has re-gained some faith from investors of late, as the company s shares have risen more than 14 percent this year to $31.12.Photo: A sign with Cisco s logo outside the company s headquarters in Santa Clara.AP/Paul Sakuma, File Tags: Chuck Robbins, Cisco, Cisco Systems, job cuts, Layoffs
Reuters — Cisco Systems Inc said it would lay off up to 5,500 employees, or nearly 7 percent of its workforce, as the world s largest networking gear maker shifts focus to areas such as security, Internet of Things and cloud.Cisco s traditional business of switches and routers has been struggling with sluggish demand from telecom carriers and enterprise customers and intense competition from companies such as Huawei and Juniper Networks Inc.Revenue in the company s traditional routers business fell 6 percent in the fourth-quarter ended July 30, while switching unit revenue was up 2 percent.Chief Executive Chuck Robbins, who took over from John Chambers in July last year, has been steering the company toward more software and services businesses.Revenue in Cisco s security business, which offers firewall protection as well as intrusion detection and prevention systems, rose 16 percent.Cisco, which is also betting on acquisitions to bolster its faster-growing businesses, has made 10 acquisitions since Robbins took the helm, according to FactSet StreetAccount data.These deals range from internet-of-things startup Jasper Technologies to cloud security provider CloudLock.Cisco s net profit rose to $2.81 billion, or 56 cents per share, in the fourth quarter, from $2.32 billion, or 45 cents per share, a year earlier.Excluding items, the company earned 63 cents per share.Revenue fell 1.6 percent to $12.64 billion.Analysts on average had expected a profit of 60 cents and revenue of $12.58 billion, according to Thomson Reuters I/B/E/S.Cisco, which expects to start laying off employees from the first quarter, said it will take a charge of about $325 million to $400 million in the quarter.On the whole, the company expects a pre-tax charge of $700 million.Technology news site CRN, citing sources close to the company, reported on Tuesday that Cisco planned to lay off about 14,000 employees, or nearly 20 percent of its workforce.Cisco s shares were down 1.2 percent at $30.38 in after-market trading on Wednesday.The shares had gained 13.2 percent this year through Wednesday s close, compared with the 6.8 percent increase in the broader S 500 index.Reporting by Arathy S Nair and Anya George Tharakan in Bengaluru; Editing by Sriraj Kalluvila
The reduction beginning this quarter renews a pattern of midsummer moves to shed costs and make room to hire employees with new talents.The job cuts, disclosed with its fiscal fourth-quarter financial results, mark the most dramatic move yet by Chief Executive Chuck Robbins, who a year ago assumed a position held for two decades by John Chambers, who remains the company s chairman.The San Jose, Calif.-based company said it would reinvest the savings from the job cuts into businesses that it expects to grow, including its own software and service offerings.Cisco has long held a dominant share of sales of the routing and switching equipment used to funnel data over the internet and between computers in data centers.Though the company has diversified its business significantly, those two hardware categories remain its largest sources of revenue, and their sales have been slowing lately.Over all, Cisco said its fiscal fourth-quarter profit rose 21% on a 1.6% revenue drop as the company tightened expenses in a variety of areas.
Apple devices get some special capabilities on Cisco networks starting with iOS 10Cisco Executive Chairman John Chambers, left, and Apple CEO Tim Cook at Cisco's Global Sales Experience Conference in Las Vegas, where they announced a mobile enterprise partnership on Monday, Aug. 31, 2015.Favored status for Apple iPhones and iPads on Cisco Systems networks starts Tuesday, giving users better Wi-Fi roaming, integrated VoIP calls and priority for the most important business apps.The benefits that the two companies envisioned more than a year ago start to come to fruition with iOS 10, which comes out Tuesday.The deal is a recognition that mobile devices have become primary tools for many workers.The companies are rolling out several features on Tuesday.
Cisco's executive shuffle continues, as the company's massive 25,000-person engineering team undergoes another reorg.As planned and announced at the start of 2016, Pankaj Patel, Cisco former executive vice president, chief development officer and head of global engineering under previous CEO John Chambers, officially left at the end of October.On Thursday, the company revealed the financial terms of Patel's departure.Meanwhile the guy that seemed destined to replace him, Zorowar Biri Singh, the networking giant s chief technology officer and CEO Chuck Robbins first big hire, also left at the end of October, after only 15 months.Singh was charged with figuring out a cloud strategy for Cisco.He had come from HP, where he was also for a short time involved with HP's cloud strategy.HP officially quit the public cloud business entirely a year ago, a few months after Singh left for Cisco.
This will be the first time in my lifetime I m voting for a Democrat, said John Chambers, executive chairman and former CEO of Cisco Systems, speaking today at Web Summit 2016 in Lisbon, Portugal.I voted for Hillary Clinton.I ve already voted, he said to wild applause from thousands of attendees inside the MEO Arena.Chambers declared his preference for U.S. president in response to the question, Which candidate in the U.S. election is more likely to be more pro-digitization and supportive of that?, posed by Izabella Kaminska of the Financial Times.Chambers hung his head and paused to gather his thoughts before answering.I m a moderate Republican, which in the U.S. is an endangered species.I support both Democrats and Republicans on many issues.I m more interested in where they stand on technology, he explained before revealing his support for Clinton.
Donald Trump s election victory is seen as a blow to Silicon Valley, putting the presidency in the hands of a vocal critic of several big technology companies and an advocate of policies tech executives have said could hurt the industry s development.During his campaign, Mr. Trump didn t offer a specific plan for how he would tackle technology policy—unlike his Democratic opponent Hillary Clinton, who in June issued a detailed tech platform that executives broadly applauded.The electorate s endorsement of Mr. Trump s populist message, which broadly blamed elites for the problems of many disaffected Americans, could also spell trouble for Silicon Valley, which has spawned companies that delivered far more in profits and stock-market valuations than they have jobs for middle-class workers.He called for a consumer boycott of Apple Inc. over its refusal to help the Federal Bureau of Investigation access a terrorist s iPhone over privacy concerns.He accused Jeff Bezos of using the Washington Post, which he owns, to advance the interests of Amazon.com Inc., the e-commerce giant he founded and runs—a claim the Post and Mr. Bezos strongly disputed.Stalwart Republicans from the industry including Hewlett Packard Enterprise Co. Chief Executive Meg Whitman and Cisco Systems Inc. Chairman John Chambers both said they backed Mrs. Clinton.
Leading figures from Cisco, Facebook, Accenture and others talk about the future of technology at Web Summit 2016 in LisbonAt the first staging of the Web Summit outside its native Ireland, tech figures from around the world have convened on Lisbon to discuss the future of innovation.Paul Daugherty, CTO at Acccenture, talked about the present and future of AI and what impact it would have on business.While some believe AI has the capability to make us more productive, protect us from cyberthreats and open up new markets, others have concerns that automation will impact jobs or even herald the end of the human race.He told the audience that greater availability of big data would help advance AI and that there was no danger the tech would eliminate human jobs entirely.CEO Carl Bass said the two major things in 3D printing s favour are that it could handle complexity and was easy to use, suggesting that areas like dentistry and jewellery were areas that could be immediately impacted.
An unpextected company has been producing one game-changing innovation after another in computer networks: Facebook.But networking giant Cisco isn't worried.On Tuesday, at Business Insider's Ignition conference in New York, the CEO of networking giant Cisco, Chuck Robbins, said that he thought there's room for both companies.Facebook has been inventing so many unique ways to build computer networks, it's arguably been putting the multibillion computer networking industry to shame, including market leader Cisco.Facebook leads an organization called the Open Compute Project, where all participants give away hardware designs, and then lots of engineers can work on them and create new hardware of their own, with no fear of violating anyone's intellectual property.It's a trend in the network industry called software-defined networking, or SDN.And just last month Facebook revealed designs for a very sophisticated optical switch for data centers, which uses light to transfer data instead of copper wiring achieving really high speeds.That's something that hasn't been done affordably in the data center before, Facebook says.Robbins: This isn't 'binary'When asked about Facebook's work, Robbins pointed out that Cisco is a member of OCP and has even participated in giving away technology to the organization.He doesn't see Facebook's OCP project as a direct threat to Cisco's way of building computer network equipment, which has traditionally centered around designing custom chips known as ASICs that cost more, but do very specific tasks fast and well."That gets into this whole discussion of hardware and software," Robbins said on stage, adding:"This is one of those buzz discussions where hardware doesn't matter anymore.
Tech companies like Cisco are salivating at the idea that under the Trump administration, they'll be able to bring back their hoards of overseas cash for much lower taxes.And they are hopeful that Trump will pass tax reform that willBut they are also worried that Trump's administration will severely clip their ability to hire worker from overseas and
Cisco Systems claims that Arista Networks has infringed its intellectual property by engaging in "slavish copying" of its Command Line Interface CLI , a system of prompts and displays that Cisco uses for controlling its routers and switches.The case has more than a passing similarity to the Oracle v. Google trial that took place in May.Nelson pointed out that Arista advertised its switching equipment by telling customers it used 99.999 percent of Cisco's user-interface commands.He also said that most other companies in the networking industry don't use Cisco commands.Things got worse during the two-week trial, with Cisco Executive Chairman John Chambers taking the witness stand to call out his former colleagues as thieves."It is hard to accuse people who are your friends—and they are still my friends—of stealing from you.