Last week I began this series on large companies in turmoil by looking at Intel, which I saw trying to guarantee its future through enlightened acquisitions that actually emulated this week’s company — Cisco Systems. So if Cisco already knows how to assimilate other companies and technologies to stay ahead of the market, how can they have a problem? Cisco’s problem is their market is mature and being commoditized with all boats sinking. And this time there isn’t an obvious new idea to buy.
Cisco is a becoming a very expensive utility appliance. The revenues streams at Cisco that are at risk:
– Enterprise routers for T-1 services versus DOCSIS 3.1 and in the future 4G LTE-A