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a61971

Cisco in trouble

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Hi

 

Sad to hear, but Cisco is going to cut 14% of it's staff = 10.000 people.

 

Half a year ago, I had a discussion with a guy I know, former CEO in a very big well known ISP.

 

He said that every signal he saw from Cisco was an indication of a company in deep trouble. We discussed this, I could only agree that

Cisco was loosing it's attraction.

 

We were in the process of designing new core, end-to-end solutions and finding a new CPE router. Total makeover.

Awful to me, a big Cisco fan, I simply had to choose Juniper at every point.

 

More performance pr. $$$, more integration in functionality, more sophisticated possibilities in design.

 

No trouble in software, in Junos we have all features from the beginning, = no Cisco circus with licenses, features/IOS versions.

 

****************

 

The old CEO told me, that he would not be surprised if Cisco would crack totally or be reduced to a small shadow of the past.

 

I really don't hope that. I really feel sorry for all those people that loose their jobs now <_<

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They were to busy buying diverse business's that had nothing to do with what they are, to many CEO's buying crap transient companies instead of concentrating on their core. As for the rest they have some niche products but will never make sufficient headway to impact them.

 

Ebb and Flow of life

 

Mark

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I've heard the rumor yesterday and it was only 5000. but still I completely agree. they cannot win every where and by fighting on every front possible cisco is spread thin. it's even seen with their SEs. while they are excellent in R&S and Voice. comes application delivery and they the picture you get is lot different.

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That number of layoffs is about right for a company of Cisco's size. All they are doing is trimming the fat and most likely returning there focus back to their core businesses.

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If any of you tune in to Brad Reese's blog you may have seen this - it does appear, that discord between Cisco engineers and Cisco technical marketing is rampant.

 

6-27-2011.jpg

 

Brad was kind enough to remove the names - then a few day later someone posted the full thing names included!!!

 

This caused a stir at http://bradreese.com/blog/6-27-2011.htm

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I haven't seen that one. in the discussion below Brad says

Well, I've bringing attention to this "Cisco Weakness" ever since Padmasree Warrior came onboard as Cisco's CTO:

http://www.networkworld.com/co...

Meanwhile, Cisco CEO John Chambers continuously gives this "Motorola Executive Deadwood" more and more responsibility within Cisco!

 

Pretty much my thought ever since Warrior joined... it is quite interesting to correlate stocks of MSI and CSCO and Warrior reign as CTO in both companies.

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Hi

 

Sad to hear, but Cisco is going to cut 14% of it's staff = 10.000 people.

 

Half a year ago, I had a discussion with a guy I know, former CEO in a very big well known ISP.

 

He said that every signal he saw from Cisco was an indication of a company in deep trouble. We discussed this, I could only agree that

Cisco was loosing it's attraction.

 

We were in the process of designing new core, end-to-end solutions and finding a new CPE router. Total makeover.

Awful to me, a big Cisco fan, I simply had to choose Juniper at every point.

 

More performance pr. $$$, more integration in functionality, more sophisticated possibilities in design.

 

No trouble in software, in Junos we have all features from the beginning, = no Cisco circus with licenses, features/IOS versions.

 

****************

 

The old CEO told me, that he would not be surprised if Cisco would crack totally or be reduced to a small shadow of the past.

 

I really don't hope that. I really feel sorry for all those people that loose their jobs now <_<

 

No trouble in software... Juniper matches cisco feature for feature and bug for bug.

 

Anyway, as time moves on most of the big wigs HP, IBM, Dell, and Oracle will implement their own connectivity piece. Dell just acquired Force 10 networks to get their 1,10,20, and 40gbps switch ports. This will take market share away from Cisco.

 

IBM or Oracle should be the next company to acquire a connectivity solution. There has already been wallstreet rumors that one of them could suck up Brocade or Juniper. Either way cisco spread itself too thin by branching out and now all of their business divisions are getting stomped on.

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what is also of interest is Intel buying Fulcrum. Which might affect Arista. Not that I think Intel will stop selling them, actually quite contrary. Intel has marvelous silicon fabs, which could drive the price of these chips down.

Many analysts keep saying that of enterprises are looking to buy a complete package. where cisco is the last how does not have such strength (now even Dell has it (well their's rebranded NetApp)) and no you won't fool too many with Flexpods nor VCEs. Oh and than there are Ebays, Amazon and Google as well as any other warehouse computing companies, that are buying anything between 10k-100k servers each month, guess how is eating most of this pie (it's not cisco ;)

But anyway after 10 years of dominance it's time for a little shake up I guess.

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I don't think they are in trouble in a cash sense, it's just as a business they are not happy with results quarter per quarter. The industry is still saturated with their products and that will remain for a long time yet. They can compete and are ahead on routers and switches, however on making the worlds fastest firewall, carrier class - they are nowhere near, and this is a huge opportunity missed I think.

 

 

The cutbacks are just in line with what millions of other companies are doing, just that it's Cisco it gets more press. Cisco are not the most prolific payers in the industry so it's not that big a deal to the market, it's just a bid deal to those that will lose their jobs, which is a crying shame. It really is an awful thing that can happen.

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I don't think they are in trouble in a cash sense, it's just as a business they are not happy with results quarter per quarter.

 

yup, they still sit on some $40B. the problem is the markets -- source of money -- do not believe them (or their marketing department). Take Nexus vs 6k5 -- 6k5 was on well over 65% margaring, Nexus is 40%. The all saving Sup2T in switching is beautiful example. I first heard about it back in 2004 give or take a year. Sup2T would have been a great hit back in 2008, could have made a huge splash even last year. I mean it is still nice product. Pretty clever architecture, as far as was able to digg. But have you read the migration guides from sup720 and line card compatibility?

Oh and the Cius thing? I am not convincing any customer to splash $700 on a below average tablet, with ethernet port and possible crypto chip.

I didn't need to do much digging on Core routing (CRSes). But the pace of invention (speed updates) are often viewed as too little too late.

this is the main problem, they are failing to admit they are losing the ground. They should refocus on innovation and engineering (or perhaps just refocus on anything), and cut the crap with architectures. The history shows so many examples of where spreading too much has leads.

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Umm...

 

Not every corner of the world is dark for Cisco.

 

We just closed the deal on $30 million list price in new sales - Nexus, Wireless, TelePresence, Unified Communications, ASRs, WAAS, and more to come from a full scale security solutions package.

 

I think Cisco is trimming the fat.

 

This is just for 2011 and a single project.

 

Another is due next year of equal or greater purchase for the 2nd of such projects...

 

And then there is more... Capital Budgets and SmartNet...

 

 

 

Again some may think Cisco is in trouble... I think they are doing just fine and my account team seems to show no sign of worry.

 

 

We are not even their largest customer for my team... just one of 7 they are responsible for.

 

 

I think Cisco is just taking this last opportunity to blame any signs of a recession on its layoff... last chance to do it.

 

 

Trim the fat the bottom feeders and failing markets or non-existent markets must go...

 

It's just business as usual.

 

Darby

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Early retirement packages for many over-paid Cisco employees from the 2000 extremely high-paid era.

 

 

That's just business common sense and not much else to it.

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You will never hear from any official employee that a company is in trouble. "We are busy, business is fantastic, we can't keep up with this huge demand ..... bla bla "

 

I just comments on what I hear and see, I see very large ISP's convert their core to Juniper routers.

It's a simple calculation: Those features, that speed, those interfaces, non-stop forwarding during any kind of software upgrade (huge issue for ISP's),

level of service agreement ..... What's the price??? Those bits wins Juniper often in my part of the world.

 

Bugs, yeah, none is perfect :angry:

 

At the CPE router business, Cisco is completely wiped out, if they ever have been there.

 

What I do see, how ever, is old Cisco experts being hard to move, they're afraid of that Juniper CLI.

I'm one of them, although I have improved during the past 5-7 years :D

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So my two pennies worth is this, Cisco is a HUGE company, the results for the quarter may not be what the top brass want so changes will happen and this is inevitable. As Darby says it may be a good thing to get rid of some of the dead wood, there is always going to be some fat to trim:-). My perspective from little old NZ is that Cisco have no real long term issues here, the company has too many 'Cisco' sites that don't really care what the market thinks, they just want a solid name behind them. They have used Cisco in the past and will continue to do so. Sure HP, Brocade, Aerohive, Aruba are going to get their market share but long term, the fact is that 'big' companies are going to want a serious support contract tied into their huge investment, for all my experience Cisco are second to none in that field and that is what people are prepared to pay for and invest in. When it comes down to it my recommendation will always be to go with Cisco and 9 times out of ten that is what the client will choose, sure they can save a few bucks going with HP but do they pay for that decision in the long run?

 

a61971, CPE is a bit out of my usual zone but i will take your word that they are not in the playing field, maybe this is a USA perspective? I think that you maybe need to take a closer look at what happens outside if your territories, there is a huge difference between the US and other parts of the world. I would make a guess that at least 70% of the work we do is predominately Cisco based and this is from one of 4 Cisco Gold Partners in the country.

 

I hear a lot of talk of 40Gb interfaces and that its the next big thing, but in reality i have yet to come across a huge amount if companies that can swamp a 20Gb connection. Sure Cisco have contention across their 10Gb blades but does it really impact your business? really?

 

In reality some of Firewalls being spouted around could probably run our country let alone a company:-)

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So my two pennies worth is this, Cisco is a HUGE company, the results for the quarter may not be what the top brass want so changes will happen and this is inevitable. As Darby says it may be a good thing to get rid of some of the dead wood, there is always going to be some fat to trim:-). My perspective from little old NZ is that Cisco have no real long term issues here, the company has too many 'Cisco' sites that don't really care what the market thinks, they just want a solid name behind them. They have used Cisco in the past and will continue to do so. Sure HP, Brocade, Aerohive, Aruba are going to get their market share but long term, the fact is that 'big' companies are going to want a serious support contract tied into their huge investment, for all my experience Cisco are second to none in that field and that is what people are prepared to pay for and invest in. When it comes down to it my recommendation will always be to go with Cisco and 9 times out of ten that is what the client will choose, sure they can save a few bucks going with HP but do they pay for that decision in the long run?

 

a61971, CPE is a bit out of my usual zone but i will take your word that they are not in the playing field, maybe this is a USA perspective? I think that you maybe need to take a closer look at what happens outside if your territories, there is a huge difference between the US and other parts of the world. I would make a guess that at least 70% of the work we do is predominately Cisco based and this is from one of 4 Cisco Gold Partners in the country.

 

I hear a lot of talk of 40Gb interfaces and that its the next big thing, but in reality i have yet to come across a huge amount if companies that can swamp a 20Gb connection. Sure Cisco have contention across their 10Gb blades but does it really impact your business? really?

 

In reality some of Firewalls being spouted around could probably run our country let alone a company:-)

 

Hi

 

No, I'm a ISP core guy in scandinavia, but I see this pattern constantly. The only real threat to Cisco here is Juniper.

 

Juniper offers a totally better "price/throughput" performance. Several ISP's change their core to Juniper ... and yes, even at the small CPE segment the difference shines.

 

I'm a Cisco man, it really bothers me. I configure both Cisco and Juniper daily, but Cisco is still my no1.

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cisco is in real trouble now. I found the follow as an answer to one of our customers question.

1. %SW_VLAN-4-IFS_FAILURE: VLAN manager encountered file operation error call = [chars] / file = [chars] / code = [dec] ([chars]) / bytes transferred = [dec].

 

The VLAN manager received an unexpected error return from a Cisco IOS file system (IFS) call while reading the VLAN database. The first [chars] is the function call name, and the second [chars] is the file name. [dec] is the error code, the third [chars] is the textual interpretation of the error code, and the second [dec] is the number of bytes transferred.

 

Recommended Action: Copy the message exactly as it appears on the console or in the system log. Research and attempt to resolve the error by using the Output Interpreter. Use the Bug Toolkit to look for similar reported problems. If you still require assistance, contact HP technical support and provide the representative with the gathered information. For more information about the online

 

Related documents- No specific documents apply to this error

 

n.b.: according to FEs this is for CBS family of switches, but this was from 3750

Edited by chrcel

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:D :D :D

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A bit late in the day I know but Cisco is the only company to provide end-to-end networking. Sure, other vendors will gain strides in their own sectors (e.g. Juniper is SP space), but if you want an end-to-end solution you're probably going to go to a single vendor than mixing it up and having to manage a disparate estate. Plus you won't get the full benefits in a mixed vendor environment as most vendors push proprietary enhancements.

 

IMHO the SP space is a pretty straightforward area. Shift data as quick as you can and as cheaply as you can. Let's see Juniper make inroads in the Enterprise then. QFabric vs Nexus/UC anyone?

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