Cisco Systems, Inc. engages in the design, manufacture, and sale of networking and other products related to the communications and information technology industry and provide services associated with these products and their use.
The company’s products are installed at corporations, public institutions, telecommunications companies, and businesses of all sizes and are also found in personal residences. The company provides various products for transporting data, voice, and video within buildings, across campuses, and around the world. The company conducts its business globally and is managed geographically in five segments: the United States and Canada; European Markets; Emerging Markets; Asia Pacific; and Japan.
In February 2006, the company acquired Scientific-Atlanta, Inc. (Scientific-Atlanta), a provider of set-top boxes, video distribution networks, and video system integration. With this acquisition, the company has added video to the convergence of data, voice, and mobility technologies, which enables it to be a stronger strategic business partner with its service provider customers, and reach various consumers with its products.
PRODUCTS AND SERVICES
The company sells Internet Protocol (IP)-based networking and other products related to the communications and information technology industry that address various customers’ needs, including improving productivity.
The company’s corresponding technology focus is on delivering networking products and solutions that simplify customers’ infrastructures, offer integrated services and security. The company’s products and services help customers build their own network infrastructures while providing tools to allow them to communicate with key stakeholders including customers, prospects, business partners, suppliers and employees.
The company’s products are used individually or as an integrated suite to connect personal and business computing devices to networks or computer networks with each other, whether they are within a building, across a campus, or around the world. The company’s breadth of product and service offerings across multiple technology segments enables it to offer various products and services to meet customer requirements.
The company also provides products and services that allow customers to transition their various networks to a single multi-service data, voice, and video network, enabling economies of scale. The company’s technologies, in addition to its core switching and routing businesses, builds upon the existing competencies and allows it to expand the overall market for the products and services. The company has identified various improved technologies, including - application networking services, home networking, hosted small-business systems, optical networking, security, storage area networking, unified communications, video systems and wireless technology.
The Internet and the various networks associated with the company include corporate intranets, cable, broadband and dialup networks, and voice and video networks, would evolve to include embedded resources and the virtualization of applications and services to produce an integrated, intelligent system or Intelligent Information Network. The company’s offerings fall into several categories:
Routing
Routing technology is the foundation for Internet and intranet. Routers interconnect computer networks, moving information, such as data, voice, and video from one network to another. The company’s routing products offer features designed to increase the intelligence, security, reliability, scalability, and level of performance in the transmission of information. The company offers various routers, from core network infrastructure for service providers and major businesses to access routers for the service-rich branch to home network deployments for consumers.
Switching
Switching is another integral networking technology that is used in buildings and campuses to build local-area networks (LANs), across cities to build metropolitan-area networks (MANs), and across great distances to build wide-area networks (WANs). The company’s switching systems offer many forms of connectivity to end users, workstations, and servers, and function as aggregators on LANs, MANs, and WANs. The company’s systems employ several used technologies, including Ethernet, Gigabit Ethernet, 10 Gigabit Ethernet, Asynchronous Transfer Mode, packet over Synchronous Optical Network (SONET), and Multiprotocol Label Switching.
Advanced Technologies
Application Networking Services: The application networking services technology combines application delivery with its application-oriented networking to help information technology (IT) departments integrate their applications, and improve the security and delivery of critical applications to users across the enterprise. The company’s application networking services products are designed to address increasingly complex IT problems, such as integration and security, by evolving the existing enterprise network infrastructure to scale, deliver, optimize, and integrate applications.
Home Networking: Home networking products connect different devices in the household, through wired or wireless connections, allowing users to share Internet access, printers, music, movies, and games throughout the home. The company’s products include voice and data modems, routers, network cards, media adapters, Internet video cameras, network storage, USB adapters, and other products that enable customers to share an Internet connection or move digital content around their homes or small-office environments. These products are sold through Linksys and Scientific-Atlanta.
Hosted Small-Business Systems: The hosted small-business systems solution combines products and services designed to provide small businesses with voice, video, and data networking, along with business applications and Internet access, through a single connection from a service provider. Hosted small-business systems include integrated voice and data products on the customer’s premises combined with security, quality of service (QoS) provisions for voice over Internet Protocol (VoIP) and video, and monitoring and management services, hosted and delivered by the telecommunications provider.
Optical Networking: The company provides optical networking products for both the enterprise and service provider markets. The company supports optical technologies, such as Synchronous Optical Network/Synchronous Digital Hierarchy (SONET/SDH), dense wavelength-division multiplexing (DWDM), and coarse wavelength-division multiplexing (CWDM), which are used to scale optical bandwidth as bandwidth applications, such as Gigabit Ethernet, voice, video, and storage become more commonplace. Scientific-Atlanta markets and sells analog and digital optoelectronics which may reside in a network operator’s headend, in other facilities, such as distribution hubs, and in optical nodes.
Security: The company provides various network security products and services that offer protection to critical information systems from unauthorized use, defend against attack, and minimize the effect of Internet-borne worms and viruses. As part of its Self-Defending Network strategy, the company offers various network security technologies embedded within its routers and switches, in security appliances, and as host-based software agents with central management and analysis. The company’s network security product and service offerings are designed to help ensure the integrity of the information network, simplify operations, and ownership.
Storage Area Networking: The company provides storage area networking products that deliver standards-based connectivity between servers and storage systems, including products, such as arrays and tape drives. The company’s products incorporate intelligent network features, such as advanced network security, traffic management, virtualization, and tools that are designed to help make storing, retrieving, and protecting critical data across various distributed environments more efficient.
Unified Communications: Cisco Unified Communications is an integrated system that provides voice, video, data, and Web services over a highly secure, standards-based IP network. Specific products include IP phones, client software, and servers and network appliances supporting call control, contact centers, messaging, conferencing, and collaboration. Cisco Unified Communications products are available as software or devices and as integrated components in Cisco’s routers and switches. They support traditional phone calls; voicemail and unified messaging; audio, video, and Web conferencing and collaboration; and customer call centers. Cisco Unified Communications solutions are sold to and used by both major corporations and small and medium-sized business; they were previously referred to as enterprise IP communications.
Video Systems: The company’s video systems consist primarily of digital set-top boxes, digital media technology products, and transport and access products. Digital set-top boxes provide video entertainment services to consumers. They enable subscribers to access various interactive digital television services developed either by Cisco or third parties. The company’s equipment includes Standard-Definition (SD) basic digital set-tops, DOCSIS (Data Over Cable System Interface Specification) Set-top Gateway (DSG) digital set-tops, High-Definition (HD) digital set-tops, Digital Video Recorder (DVR) set-tops, HD-DVR set-tops, Multi-Room DVR set-tops, Media Center DVR set-tops, and Digital-only set-tops. Digital media technology products span various signal processing and headend capabilities, including reception, encoding or transcoding, transrating, multiplexing, ad insertion, switching, and modulation. Deployment of these capabilities can help service providers and broadcast customers to deliver entertainment, information, and communications services over their existing access networks. These products are sold primarily through Scientific-Atlanta.
Wireless Technology: The company offers various in-building and outdoor wireless networking products. These products include access points, wireless LAN controllers, wireless integrated switches and routers, wireless management software, wireless LAN clients and client software, bridges, antennas, and accessories. The company’s wireless networking products are designed to provide secure, manageable, and reliable wireless LANs that enable mobility and increase productivity.
Other Products
The company’s other products are comprised primarily of access, service provider IP communications, and network management software products.
Service
In addition to its product offerings, the company provides various service offerings, including technical support services and improved services. Technical support services help ensure that the company’s products operate most up-to-date system software. These services help customers protect their network investments and minimize downtime for systems running mission-critical applications. Advanced services are services that are part of a program that is designed to provide responsive, preventive, and consultative support of the company’s technologies for specific networking needs. The advanced services program supports networking devices, applications, and complete infrastructures.
Significant Events
In May 2007, the company and RSA (RSA Security Inc.), The Security Division of EMC announced they are working together to develop technology that will help customers improve and simplify the encryption of confidential information such as medical records, social security and credit card numbers.
In May 2007, Cisco Systems Inc. and Nokia Siemens Networks entered into an agreement to develop a standards-based telecommunications network management platform that will help service providers manage the increasing complexity of their networks and speed time to market of new services.
In May 2007, The Ministry of Information and Communications Technology and Cisco Systems, Inc. announced at a joint press conference their continuing commitment to working together to build the Kingdom's human resources capacity in order to position Jordan as an ICT hub for the whole region, in addition to continuing the implementation of the National Broadband Network (NBN), and the deployment the e-government infrastructure.
NEC Display Solutions Of America, Inc. and Cisco Systems, Inc. have formed a collaboration that would offer a digital signage solution to address the digital signage market. NEC Display Solutions would offer its large-screen MultiSync LCD displays while Cisco would offer its Cisco Digital Signage solution to provide digital signage customers marketing, advertising and training functionality.
Cisco Systems, Inc. has launched a new subsidiary in China to provide finance and leasing services to its customers. The subsidiary, called Cisco Capital China, would provide mid- to long-term finance and leasing solutions to its customers. Cisco Capital China would serve as a facilitator for Cisco.
Acquisitions
In February 2006, the company acquired Scientific-Atlanta, Inc. (Scientific-Atlanta), a provider of set-top boxes, video distribution networks and video system integration. With this acquisition, the company has added video to the convergence of data, voice and mobility technologies, which enables it to be a stronger strategic business partner with its service provider customers, and reach various consumers with its products.
Strategic Alliances
SAP AG and Cisco Systems, Inc. have entered into an agreement to jointly develop a new breed of business solutions that can transform how applications and networks interact. These new solutions are designed to enable the business network agility that is essential to bringing together customers, partners, suppliers and employees across geographically dispersed, highly heterogeneous business and information technology landscapes. SAP and Cisco intend to develop business solutions that support their shared visions of service- oriented architecture (SOA) and integrate the context of operational business applications with the intelligence captured throughout the network, providing customers with high levels of visibility, control and responsiveness across the extended enterprise. The first solution produced from the collaboration would include composite applications that address the need for an integrated network and application platform providing a view of the extended enterprise for the management of compliance and risk in business environment.
Cisco Systems, Inc. has entered into an agreement with the Singapore Infocomm Development Authority to offer Internet Protocol (IP) networking in Singapore. Under the collaboration, both parties would enhance collaborations to identify, develop and deploy converged IT applications in Singapore.
Cisco Systems, Inc. and Sitronics have formed an alliance for operations in Russia and other former Soviet republics. The companies would focus on supplying advanced telecommunications solutions to countries undergoing economic and social transformations.
Schlumberger, Ltd., Cisco Systems, Inc. and Intel Corp. have entered into a collaboration to develop a first mile wireless service for oilfield operations. The first mile in the oilfield refers to the critical connectivity of drilling sites or producing fields into a network. The service would enable operators and their partners manage drilling and production operations through a wireless fabric of sensors, distributed computing networks and service- oriented applications.
The company pursues strategic alliances with other companies in areas where collaboration can produce industry improvement and acceleration of markets. The company has strategic alliances with Accenture Ltd; AT&T Corp.; BearingPoint, Inc.; Cap Gemini S.A.; Electronic Data Systems Corporation; EMC Corporation; Ericsson; Fujitsu Limited; Hewlett-Packard Company; Intel Corporation; International Business Machines Corporation; Italtel SpA; Microsoft Corporation; Motorola, Inc.; Siemens AG; and Sprint Nextel Corporation.
Amdocs Ltd. formed collaboration with the company to deliver a jointly defined Operation Support System (OSS) -to-Network solution for enhanced service management for Next Generation Network (NGN) and Internet Protocol (IP) services.
Customers and Markets
The company markets its products through its sales offices in approximately 70 countries and sells its products and services both directly and through various channels. The company’s customers are primarily in various markets, including - enterprise businesses, service providers, commercial, and consumer.
Enterprise Businesses: The company defines major enterprise businesses generally as regional, national, or global organizations with 1,000 or more employees working in multiple locations or branch offices. They have complex IT infrastructures and networking needs within a multivendor environment. The company’s major enterprise customers include government, education, and healthcare organizations and retail, finance, manufacturing, and transportation entities. The company creates and delivers routing, switching, network security, unified communications, mobility, storage, and other products and services in collaboration with third-party application and hardware vendors and channel partners. The company also offers various services, including service and support packages, financing, and managed network service offerings through its service provider partners.
Service Providers: Service providers offer data, voice, and video communication services to businesses, governments, utilities and consumers. They include regional, national, and international telecommunications carriers and Internet, cable, and wireless service providers. Service providers use various routing, switching, optical, storage, security, video systems, and network management products in their own core networks. Additionally, many service providers offer managed network services incorporating its products for their residential, enterprise and commercial customers.
Commercial: The company defines commercial customers primarily as small and medium-sized businesses having approximately 1,000 employees and a need for networks of their own, and for connections to the Internet and to business partners. The company attempts to provide products that are affordable and easy to install and use. The commercial market remains an area of potential growth for network adoption and deployment of intelligent networking.
Consumer: Consumer customers, primarily individuals and businesses operating in small offices or home offices, have infrastructure and networking needs on a smaller scale.
Competition
The company’s principal competitors include 3Com; Alcatel; Avaya; Avici Systems; Brocade Communications Systems, Inc.; Check Point Software Technologies; Ciena; D-Link Corporation; Dell; Enterasys Networks; Extreme Networks; F5 Networks, Inc.; Force10 Networks, Inc.; Foundry Networks; Fujitsu; Hewlett-Packard Company; Huawei Technologies; Juniper Networks; Lucent Technologies; McDATA Corporation; Motorola, Inc.; NETGEAR, Inc.; Nokia; Nortel Networks; Redback Networks; Siemens AG; Sycamore Networks; and Symbol Technologies, Inc.
History
Cisco Systems, Inc. was incorporated in 1984.
