Chambers Touts Cisco's Shift to Applications in Interop Keynote

By Eric Lundquist  |  Posted 2013-10-02 Print this article Print

Cisco’s stance to two of the bigger trends in networks technology—software-defined networks and the OpenFlow standard—has changed considerably in recent months.

As analyst Patrick Moorhead described in a Forbes column, “Earlier this year Cisco announced its Cisco Open Network Environment (Cisco ONE) and the juxtaposition of the word “open” in a Cisco announcement has caused plenty of head scratching. Cisco prides itself on its technologies and is not necessarily one to push an open source standard; their business model is about captive customers and sunk investments that create a barrier for customers who want to switch to competing technologies.”

The upcoming launch hinted by Chambers is expected to be the public announcement of the much delayed product from Insieme Networks (a spin-in, as Cisco calls it). Insieme is the key to the application-centric infrastructure and incorporates a specially-designed ASIC (Application-Specific Integrated Circuit) chip to move congested workloads while migrating the associated security and policy enforcement procedures.

If that type of virtualized movement sounds familiar, it is the goal of many software-defined network architectures, which rely on merchant chips from vendors such as Broadcom rather than custom-designed chips. During his keynote, Chambers held up a chip—presumably the Insieme ASIC—which he described as key to the application model.

The Chambers presentation came a day after it was revealed that his salary had doubled in the past year. The increased salary comes at an awkward time as the company has instituted a series of layoffs and issued a less than robust business forecast.

As Bloomberg reported, “Cisco Systems Inc. Chief Executive Officer John Chambers received $21.1 million in compensation for the company’s latest fiscal year, almost twice the amount from the previous period. Chambers, 64, saw his base salary raised to $1.1 million for the year ending in July, from $375,000, according to a filing yesterday with the U.S. Securities and Exchange Commission. His previous salary was “historically low,” and the increase brings his compensation in line with peers, the company said.”

Eric Lundquist is a technology analyst at Ziff Brothers Investments, a private investment firm. Lundquist, who was editor-in-chief at eWEEK (previously PC WEEK) from 1996-2008 authored this article for eWEEK to share his thoughts on technology, products and services. No investment advice is offered in this article. All duties are disclaimed. Lundquist works separately for a private investment firm which may at any time invest in companies whose products are discussed in this article and no disclosure of securities transactions will be made.


Submit a Comment

Loading Comments...
Manage your Newsletters: Login   Register My Newsletters

Rocket Fuel