This Day On The Street
Continue to site
ADVERTISEMENT
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

Cisco Beats -- on Pathetically Low Expectations

A social strategy? Cisco entered this market with a product called Quad enterprise social networking, re-branded it to WebEx, its online conferencing product, and has now abandoned it in favor of working with Jive Software (JIVE).

The Internet of Things? The general manager of that group, Guido Jouret, quietly resigned this month to be replaced by Rod Soderbery, general manager for enterprise networking.

Now Chambers is telling his troops that security will be a key focus and loudly proclaiming Cisco will "crush" VMware (VMW) in the cloud with a software-defined networking unit called Insieme. Chambers also proclaims interest in the public cloud market with an offering called InterCloud but its strategy there is called fuzzy at best.

None of these new technology areas -- consumer, social, Internet of Things, or even cloud -- has produced a positive hit to revenue. Cisco's latest quarter was driven by mobile carriers increasing their network capacity in the U.S. and northern Europe, while sales in emerging markets sagged.

That's why the technology press is quietly hearing rumors that Chambers may be heading out the door. He turns 65 this year and, while he's as legendary in his business as Larry Ellison of Oracle (ORCL) is in database software, he occupies a fading niche.

John Chambers and Cisco may be able to fool Wall Street, but how much longer can they fool Sand Hill Road in Silicon Valley?

>>Read More: 5 Lowest-Priced 2014 Cars You'll Actually Want to Drive

>>Read More: Gannett Turns the Page and Continues the Transformation

At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CSCO $27.46 0.00%
AAPL $125.42 0.00%
FB $85.76 0.00%
GOOG $520.51 0.00%
TSLA $268.26 0.00%

Markets

DOW 17,619.51 +23.16 0.13%
S&P 500 2,063.11 +5.48 0.27%
NASDAQ 4,986.8670 +28.3990 0.57%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs