Cisco Systems Presented by Vakul singh gupta Vikas tiwari Sudip mitra Vivek singh Sonam sareen Surbhi kshitij
Company overview <ul><li>Cisco Systems, Inc. is the worldwide leader in networking for the Internet. Today, networks are an essential part of business, education, government and home communications, and Cisco Internet Protocol-based (IP) networking solutions are the foundation of these networks. </li></ul><ul><li>Cisco hardware, software, and service offerings are used to create Internet solutions that allow individuals, companies, and countries to increase productivity, improve customer satisfaction and strengthen competitive advantage. The Cisco name has become synonymous with the Internet, as well as with the productivity improvements that Internet business solutions provide. </li></ul>
Mission and vision <ul><li>“ At Cisco, our vision is to change the way people work, live, play and learn” – Cisco </li></ul><ul><li>Company’s mission is to enable people to make powerful connections-whether in business, education, philanthropy, or creativity. </li></ul><ul><li>Cisco Systems also strove to deliver a wide range of new products, expand its offerings through internal and external efforts, enhance customer support, and increase its presence around the world. </li></ul><ul><li>Organizations started to recognize the value of their information networks and the Internet as a source of business advantage; all of this drove company’s mission and vision. </li></ul><ul><li>Cisco saw the need for multiservice network and were trying to find the ways how to integrate voice, video and data networks together. </li></ul>
History <ul><li>1984 - Computer scientists, Len Bosack and Sandy Lerner, from Stanford University, found Cisco Systems. They invented technology to link their disparate computer systems together. </li></ul><ul><li>1985 – first corporate logo is developed and first system the Massbus-Ethernet Interface Subsystem (MEIS), is shipped. </li></ul><ul><li>1986 - Cisco forever changes the networking communications industry and the Internet by launching its first routing innovation, the AGS multi-protocol router. </li></ul><ul><li>1988 - John Morgridge joins Cisco as President and CEO. </li></ul><ul><li>1989 – Revenues reach $27 million. </li></ul><ul><li>1990 – Revenues reach $69 million. Cisco goes public on February 16, listed as “CSCO” on the NASDAQ. </li></ul><ul><li>1991 – Revenues reach $183 million. Market capitalization reaches $1 billion. </li></ul><ul><li>1993 – Revenues reach $714 million. Cisco makes its first acquisition: Crescendo Communications and its 100-Mbps Copper Distributed Data Interface (CDDI) technology. With the acquisition of Crescendo, Mario Mazzola joins the company. </li></ul>
History (cont’d) <ul><li>1994 – Revenues reach $1.3 billion. Cisco becomes the first major supplier of Multiprotocol internetworking products to be awarded ISO 9001 certification—an internationally recognized endorsement for quality management and quality assurance. </li></ul><ul><li>1996 – Cisco makes acquisitions with such companies as TGV Software, Inc., Stratacom, Inc., Telebit Corp’s MICA Technologies, Nashoba Networks, Netsys Technologies, Inc., and Metaplex, Inc. </li></ul><ul><li>1997 - Cisco makes its first appearance in the Fortune 500 at number 332. Revenues reach $6.5 billion. Makes acquisitions with more companies and corporations such as Ardent Communications. Cisco introduces first in a series of products aimed at the voice-over-IP and fax-over-IP markets; Outlines the first phase of voice/video/data integration strategy. </li></ul><ul><li>1998 – Revenues reach $8.5 billion. Cisco becomes the first company in history to achieve a market capitalization of $100 billion in just 14 years. Makes acquisitions with such companies as American Internet Corp., and Pipelinks, Inc. </li></ul><ul><li>1999 - Fortune magazine recognizes Cisco as one of the top 25 best places to work in America and the 8th most admired company in the world. Market capitalization reaches $300 billion. Makes acquisitions with about 20 companies and corporations. Cisco forms partnerships with 10 leading companies to create standards for wireless Internet technology. </li></ul><ul><li>2000 - Cisco became the world’s most valuable company, in terms of market cap, on March 27, with a high of $82 a share (market cap: $569B), closing at $80.06 (market cap: $555B). Makes acquisitions with about 30 companies and corporations. </li></ul><ul><li>2003 - Cisco entered home networking market with its acquisition of The Linksys </li></ul><ul><li>Group. Cisco receives Presidential Award for Corporate Leadership. </li></ul><ul><li>2006 – Revenues reach $28.5 billion. </li></ul>
Goals and strategies <ul><li>Company was trying to expand rapidly and offer new services and products. The main element of Cisco’s strategy during this expansion phase was to maintain a passionate customer focus and consistently try to exceed customer expectations. </li></ul><ul><li>Company targeted three key markets: enterprise, service providers, and small/medium business. </li></ul><ul><li>John Chambers wanted to enhance and expand already recognized brand and increased Cisco’s marketing to include television, Internet, and print advertising. </li></ul><ul><li>Cisco also strove to maintain its product leadership in each of the market segments it already served. The product leadership strategy involved the innovation of Cisco’s engineering teams, complemented by alliances, acquisitions, and minority investments. </li></ul>
Goals and strategies <ul><li>As the networking space became more competitive, and as minimizing time to market became more important, Chambers realized that Cisco could not keep up with the changing market needs solely through internal development. </li></ul><ul><li>Acquisitions and alliances to gain access to world-class technologies and people became a defining component of Cisco’s strategy. </li></ul><ul><li>This strategy is relatively unique: most high-tech companies considered looking to the outside for technological help a sign of weakness. </li></ul><ul><li>“ The companies who emerge as industry leaders will be those who understand how to partner and those who understand how to acquire.” – John Chambers, CEO. </li></ul><ul><li>If Cisco did not have the technological capability, engineering capacity, or time to develop the product internally, the business development group would opt to acquire or partner with external player. </li></ul>
Goals and strategies (cont’d) <ul><li>Cisco was an active minority investor, which gave it insight into new technologies without having to deploy internal development resources. </li></ul><ul><li>Cisco was the most effective tech company at identifying, acquiring, and successfully integrating companies into its culture. </li></ul><ul><li>“ When we acquire a company, we aren’t simply acquiring its current products, we’re acquiring the next generation of products through its people.” – John Chambers, CEO. </li></ul>
Market and industry <ul><li>With an early foothold in this rapidly growing industry, Cisco quickly became the leader in the data networking equipment market – the “plumbing” of the Internet. </li></ul><ul><li>By 1997, Cisco made approximately 80% of the large-scale routers that powered the Internet. </li></ul><ul><li>Cisco held the number one or two position in most markets in which it competed. </li></ul><ul><li>Customers sought end-to-end networking solutions. </li></ul><ul><li>The ongoing deregulation of telecommunications and technology convergence were driving the trend toward the integration of voice, video and data networks. </li></ul><ul><li>Telecommunications market consisted of $250 billion. </li></ul>
Perspective analysis <ul><li>Technological drivers of change: companies recognized the need for multiservice network. Growing technological world built a need for high-speed networking. Advances in digitalization allowed forms of communication to be translated into binary computer language. The ongoing deregulation of telecommunications and technology convergence were driving the trend toward the integration of voice, data and video networks. The evolution of network infrastructure was creating business opportunities in virtually every sector of networking. </li></ul>
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