See you on the golf course, John, Cisco is in trouble

ballmerchambersLast 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

–          […]

Prediction #4: Motorola buys TiVO

What’s going to happen with TiVO?  The pioneering Digital Video Recorder company is still in business with around a million subscribers and it has lately been settling patent infringement cases with big companies like Echostar and — just this week — with AT&T, but the longer term prospects for the company are dim. Yes, they’ll likely rake in hundreds of million more in settlements from companies including Verizon, but at the same time their subscriber base is dwindling and a point will come when their hardware will simply disappear as the company loses manufacturing economies of scale. That is unless they want to start shipping each new unit with a $100 bill attached — something […]

By |January 3rd, 2012|2012|64 Comments

What He Said: Cisco Steps Up Its Router Game

Last week Cisco Systems made a big product announcement that the networking giant said would change the Internet forever. What could it be? Well it was a big router, a really big router that would allow more bits than ever to flow over the world’s fiber backbones. And the market yawned, because bits are a commodity and it is hard to tell a million bushels of wheat in a pile from two million bushels of wheat. And Cisco’s enterprise customers — its biggest business customers — have plenty of bandwidth already, thanks.

Well that’s the entire point: corporations, where T1‘s still dominate, use less bandwidth per person than we do at our house, […]

By |March 15th, 2010|2010|71 Comments