This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Why Cisco Benefits From Apple's iPad (Update 1)

SAN JOSE, Calif. (TheStreet) -- Apple's (AAPL) new iPad, along with the slew of Google (GOOG) Android-based tablets, spells big opportunity for Cisco (CSCO), according to Robert Lloyd, the networking giant's executive vice president of worldwide operations.

"It means that the network does play, and will play, a critical role in opening up these devices into corporate IT," he said during an interview at Cisco's headquarters. "Our customers are saying 'How am I going to exploit that [tablet innovation] and use that in the enterprise?'"

Cisco sees opportunity in the new Apple iPad.

Cisco, which busted out strong second-quarter results last month, is rebounding from a difficult period in company history. After undergoing a massive corporate overhaul, though, Cisco is enjoying healthy growth in key areas such as switching and routing.

Cisco's switching revenue, which accounts for almost a third of total sales, climbed 8% year over year during the second quarter. The company's routing revenue, which makes up just under a fifth of Cisco's sales, also grew 8%.

Lloyd added that Cisco has seen improved demand for a number of its offerings since Apple kick-started the tablet revolution in early 2010.

"We have seen a huge amount of growth in our Wi-Fi business," he said, adding that tablets have also boosted Cisco's security sales."The network is more relevant than ever before, and we're really looking at that change in devices and explosion in mobility as a huge opportunity for Cisco."

Cisco, of course, has its own tablet, the business-focused Cius, although Lloyd said the device should not be compared to Apple's iPad.

"Don't confuse the Cius with a consumer tablet," he said. "It's a business device that's optimized not only for communications, but [also] for this increasing trend to mobility in the enterprise workplace."

Cisco unveiled the Cius last year, combining tablet functionality with telepresence, a form of high-end video conferencing, when hooked up to a docking station. The networker also debuted AppHQ, its Cius app ecosystem, which includes VMware (VMW) View Client for desktop virtualization and Citrix (CTXS) receiver for remote desktop access.

Cius, however, has been relatively low-profile at Cisco recently, particularly when compared to the company's UCS server technology. The tablet, for example, has not even been mentioned on the networking giant's recent quarterly conference calls.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,982.59 +22.02 0.13%
S&P 500 1,978.91 +0.57 0.03%
NASDAQ 4,444.9090 -4.6550 -0.10%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs