Cisco Systems fell from 150 days after the restructuring Tuesday as an aggressive competitor exposed some of the problems that led you to make changes, saying his opponent in trouble even worse.
The dominant network society has begun to streamline operations and focus on a core business principles this year after the publication of disappointing financial results. Restructuring completed later eliminated its consumer unit return camcorders and other businesses and 12,900 jobs, with nearly 23,000 employees, moved into the process. Frameworks define a little closer to California on the annual financial analyst conference in San Jose Cisco Tuesday.
However, the chairman and CEO, John Chambers, will not be a victim of restructuring, despite reports on Tuesday that he would leave his post at the conference. Towards the end of the event, in response to a question from an analyst, said Chambers, he had agreed last week to remain the order of the Board of Directors of Cisco.
Chambers acknowledged that the company had lost his way and in some areas ineffective by comparison of the performance. “We were fat,” said Chambers. “I mean, it was a four or five extra inches at the waist.”
First, the organization has to work hard for Cisco customers to deal with them. “It causes pain in the negotiation of contracts and software licenses,” said Chambers. In addition, the company has not customer feedback on products and not hear, share the road enough information, he added.
In addition, the customer would want a closer integration of Cisco products in order to operate more easily. And parts have fallen behind the innovation of Cisco, Chambers said.
In the restructuring, Cisco assigned to specific individuals to fill these gaps, said Chambers. Also appointed was to be for the product lines from a collection of boards and contentious board of directors.
Executives provided some details on how Cisco intends to streamline operations. By the sales staff more autonomy in management, the company is the average time it has bids by 70 percent, reduced Chief Operating Officer Gary Moore review. Cisco is also a large number of product teams work closely together to compete instead, so Chambers.
Cisco plans to integrate more technologies and components to build more products, said Chambers. In addition, the company plans to have the same ASIC (Application-Specific Integrated Circuits) several product lines used to reduce the cost of chip development.
Cisco five areas of interest are now in the heart of routing and switching business, collaboration, virtualization of data centers, video and connecting these elements together into an overall architecture.
Frames this apprentice Cisco has a strong vision for the next three years an average annual turnover of between 5 and 7 percent. Earnings per share, excluding certain items, is expected to grow 7-9 percent per year, said Finance Director Frank Calderone.
Meanwhile, competitors are starting to make their own problems, said Chambers. Hewlett-Packard said in a Cisco strategy to fight and had to prove exceeded the reasonable price of the company that their products based on cheaper long term. In a conversation with analysts after the main presentations, the day passed, said Chambers, “If HP has always been more at risk?”
Cisco Juniper has also repeatedly attacked during the conference, just days after he launched a video ad that Juniper with the introduction of the product delay mocked. Routing rival Silicon Valley is spread very thinly across its core router and service provider of new products, the company said Chambers.
“We have never been in a better position compared to our competitors,” said Chambers.