Feeds

Cisco splits into 11 technology groups

Are they trying to form a Borg football team?

  • alert
  • submit to reddit

Boost IT visibility and business value

Cisco Systems has radically restructured its business moving from three lines of business to 11 technology groups. The reorganisation sees the departure of the head of its service provider line of business, Kevin Kennedy.

The move will see the creation within Cisco of centralised engineering and marketing organisations, and comes at a time of flat sales for the networking giant.

Cisco chief executive, John Chambers, said its sales were in line with its current expectations.

"We are making these changes at a time when we are beginning to see signs that our business is stabilizing," said Chambers. "Our line of business structure has served us very well in the past, when customer segments and product requirements were very distinct.

Today, the differences have blurred between these customer segments," he added.

Cisco's 11 technology groups are: Access, aggregation, Cisco IOS Technologies Division (ITD), Internet Switching and Services, Ethernet Access, Network Management Services, Core Routing, Optical, Storage, Voice and Wireless

This structure replaces the organisation which Cisco had in place since 1997 with three lines of business: enterprise, service provider and commercial (read small business).

"This new structure brings us even closer to our customers, encourages teamwork and eliminates product and resource overlaps," said Chambers.

The biggest change arising out of this move is the departure of Kennedy, who will be leaving Cisco after eight years to "pursue external opportunities". He will continue as an advisor to the firm.

Big winners in the reorganisation include Mario Mazzola, former senior vice president of Cisco's new business ventures group, who has been named chief development officer and effectively becomes second in command at Cisco.

James Richardson, formerly senior vice president of its enterprise line of business, and arguably the dullest speaker in IT, becomes chief marketing officer. Smart cookie Michelangelo Volpi, Cisco's chief strategy officer, has been placed in charge of the largest technology area, Internet Switching and Services.

Earlier this month Cisco posted profits for its fourth quarter of just $7 million, down 99 per cent from $796 million profits in the same period last year, as the slowdown in the telecoms market continued to hit sales at the networking giant.

The results, which were in line with Wall St expectations, showed Cisco's sales dropping 25 per cent from $5.72 billion to $4.3 billion in its fourth quarter this year. For the full year, Cisco recorded losses of $1.01 billion compared to income of $2.67 billion for fiscal 2000. ®

External Links

Cisco Systems Announces New Organizational Structure

Related Stories

Cisco loses $2.69 billion on declining sales
Where have all the Cisco customers gone?
Cisco boss slashes salary to $1
Cisco boss apologises for slashing jobs
Cisco's Borg-like acquisition spree may be curtailed

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.