14 DAY TRIAL // Cisco Systems reported a high quarterly profit backed up by increasing revenues as more and more companies and enterprises invest in renewing their networking equipment. Cisco Systems is a manufacturer and vendor of routers, switches and other types of networking equipment.
As the Internet expands and all major companies are interested in a new hardware infrastructure that will help them in the networking area, Cisco chief executive officer John Chambers said that his company will see a period of accelerated growth over the next few years. "The second phase of the Internet will enable collaboration that will dramatically improve productivity," he said. "And it has the opportunity to be an instant replay of what happened for Cisco in the early 1990s, powering our growth for at least a decade."
According to the news site News.com Cisco's profit for the last quarter of the fiscal year rose to $1.9 billion from $1.5 billion in the same period a year earlier. While financial analysts expected to see Cisco's revenues reach $9.275 billion, they rose in fact by 18 percent and hit the $9.4 billion figure. This high rate of growth was supported by the strong sales of traditional Cisco equipments like routers and switches, but John Chambers predicts that the future of his company lies in the collaboration with other similar enterprises and the development of network based systems like Teleresence, a revolutionary video conferencing system. "We expect to do with Web 2.0 technology what we did with Internet," the Cisco CEO said. "The Internet had been around for years, and we took it and used it to transform our own business to improve productivity. We'll do the same thing with collaboration technology."
Cisco System is currently supported by a strong foothold in the enterprise area, where customers are expecting to pay a high price for state of the art equipments and now the company feels like expanding its reach to individual customers that are becoming interested in the multimedia support of the Web 2.0.