Hot off a good quarterly earnings report, where Cisco grew revenues by 7% and forecast 3 to 5% growth for next quarter (about what analysts were expecting), CEO John Chambers was absolutely ebullient.

He declared his competitors all-but-vanquished, particularly upstarts like Facebook and VMware.
He said no one needs to worry about Cisco’s gross profit margins due to increased competition.
He also indicated, again, that he’s still no where near ready to retire. Chambers, 65, said he ran four miles that morning, doing it in his fastest time ever, and he lifted weights.

Crushing Facebook

An hour before Cisco’s earnings, Facebook announced some big progress in its efforts to build a new kind of computer network, using products it developed for itself and is sharing with the world. It urged others to join it in building the same kind of network. Cisco is the dominant player in the network industry, so Facebook’s efforts are a rebuff of Cisco’s ways.

Facebook isn’t alone. A number of startups, like Plexxi and Pluribus, are doing a similar things, using off-the-shelf components and open source software. They say their networks are less expensive and easier to manage than the traditional way (i.e., a Cisco network).

source: businessinsider