Faster and More Consistent in Innovation
In summarizing Cisco's outlook for the next two to three years, Chambers said, "If we do our job right, what you will find is that we will be the clear leader in the five foundational areas that determine the future of networking-and not just networking, but perhaps IT and business transformation. And we'll be doing this with mobility and security across the five areas. "We'll be faster and more consistent in our innovation-the key word here is 'consistent,'" Chambers said.
Chambers also said he expects Cisco to obtain 40 percent of its long-term growth from emerging markets compared with about 20 percent now.
A day following Chambers' remarks, HP sent a statement via email to eWEEK: "Comments from Cisco today (Sept. 13) are reinforcing what we have been saying for two years: Networking is no longer a one-horse race. Clearly, the traction that HP has gained in a short period of time has made us a significant threat to Cisco.
"Customer buying behavior of HP Networking solutions over the last two years makes it clear why anyone in the networking hardware space would identify HP as a top competitor. HP is the No. 2 networking vendor in market share by revenue in Ethernet switching, recently gaining 360 basis points in market since late 2008. HP's gain was acquired largely at the expense of the No. 1 vendor, which lost 600 basis points in marketshare over the same period, according to a recent report from Dell'Oro.
"In the third quarter of fiscal year 2011, HP reported revenue growth of 15 percent year over year for HP Networking, which is the seventh consecutive quarter of double-digit growth."
Editor's note: This article was updated 9/14/11 with Hewlett-Packard's statement.