Cisco Shift Gums Up the Works for Rivals

If Cisco (CSCO Quote) is looking more and more like the glue of the networked world, its communications equipment-building rivals are in a stickier fix than ever.

With sales of personal technology growing furiously and networking gear getting cheaper and more ubiquitous, analysts expect 2003 to bring a virtual population explosion among network gadgets. Soon enough there will be literally billions of digital camcorders, personal digital assistants and other devices that will call out for a simple interconnection standard.

With $20 billion in its war chest and a vow to enter a dozen new markets, investors say, Cisco is in an unrivaled position to bend these new, simpler networks to its own specifications. Doing so could help to answer some of the swirling questions about the one-time highflier's growth prospects. It could also turn the ever-present spotlight on Cisco's acquisition prospects away from the sagging communications gear sector to something completely different and perhaps more forward-thinking -- network software. ...