Cisco Skid, Or Cisco Comeback?

The health of Cisco is the concern of every IT pro, especially network managers. After all, the company is the world's leading maker of routing and switching equipment for the Internet and corporate networks. In fact, it commands about 65 percent of the enterprise router business. If Cisco stumbles, quality, service, and support could be affected for the companies that use its products.

You only need to go back to last year for proof. In 2001, Cisco toppled from its perch as the most valuable company in the world. Revenue fell short, the stock sank, and 8,000 workers lost their jobs. And enterprises that use Cisco products felt the pain—in the form of delivery lapses and a drop in service quality.

But since then, CEO John Chambers has done a good job of steering a slimmed-down Cisco toward better times. He's reorganized product development for better control of inventory management, and has made a point of seeking out stable telecom customers—like the four Baby Bells.

Cisco also is sealing its reputation as a reliable provider of secure products, even in the face of new threats from hackers. Combined with the other steps it's taking, that has to give enterprise customers peace of mind—in more ways than one.

News source: Techweb