Cisco Systems: History, Overview, and Research Paper

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Cisco has "bought 36 companies, including WebEx, a Web meeting specialist, for $3.2 billion…Cisco also picked up PostPath, a maker of e-mail software, and Jabber, a leader in corporate instant messaging" (Vance 2008). At present, unified communications is a small part of Cisco's annual revenue, but one it intends to grow.

Another ambitious venture it intends to embark upon within the next few months is its introduction of a computer server computer equipped with sophisticated virtualization software. Some analysts fear that this will disrupt Cisco's traditionally friendly relationship with current manufactures of makers of computer hardware, such as H.P., I.B.M. And Dell. However, interest in virtualization software has expanded at an exponential rate. "Virtualization products let companies run numerous business applications, rather than just one, on each physical server, allowing them to save electricity and get more out of their hardware purchases" (Vance 2009). Cisco seeks to become a pioneer in this field. Analysts estimate, Cisco could only obtain 50% gross margins with the initial server product, but Cisco hopes to become a first-mover in this new technology.

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It remains to be seen if Cisco can dominate unified communications and virtualization software to the same degree it has its other fields of specialty, and if it will start a competitive war with old corporate friends like Microsoft, H.P.I.B.M, and Dell, companies that thought Cisco would accept its symbiotic role in relation to their technologies. Regardless, Cisco as a company has shown an admirable ability to reinvent itself that speaks well for its future. The applications it has specialized in are essential to the future of the Internet age and the technically connected global economy, and Cisco knows that once an exciting new technology becomes ubiquitous it is very difficult for a business or an individual to do without it. With comfortable profits from its core business, despite the overall shaky economy, Cisco feels confident of its future and its ability to be competitive with industry stalwarts.

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