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Cisco to lay off about 14,000 employees

reuters.com

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Re: Cisco to lay off about 14,000 employees

#6
post #3

I'm curious about which business units this affects most. I expect it to affect hardware development as the company increases its focus on security.

Why would hardware development not be important to security?

Long story short: I think that, in the next year, we will see a marked shift toward subscription pricing. Amazon pushing subscriptions. Dollar shave club for X. Same for Cisco - getting recurring revenue through security/SDN/SaaS subscriptions rather than one-time hardware sales seems to be a safer long-term bet.

Re: Cisco to lay off about 14,000 employees

#7
post #3

I'm curious about which business units this affects most. I expect it to affect hardware development as the company increases its focus on security.

Why would hardware development not be important to security?

To guess, I think it is because Cisco will pursue a strategy of software defined networking. That means more consolidated hardware development by fewer employees.

Re: Cisco to lay off about 14,000 employees

#8

I'm curious about which business units this affects most. I expect it to affect hardware development as the company increases its focus on security.

What does Cisco sell besides hardware?

Look at all of the recent acquisitions:

https://en.wikipedia.org/wiki/List_of_acquisitions_by_Cisco_...

And look at the strategy playing out:

https://blog.opendns.com/2016/07/08/new-integration-anyconne...

Re: Cisco to lay off about 14,000 employees

#10
> ...as the company transition from its hardware roots into a software-centric organization.

With all these companies exiting the hardware space, who is going to be doing the hardware?

Will hardware remain a niche department within these software based companies? Are off-the-shelf systems-on-a-chip now powerful enough that there is now no need for hardware, beyond a generic universal SoC based device? Is it going to be an unserviced niche for new players to move into?

To use the specific example of Cisco: what hardware are Cisco planning to have their software running on in (for example) 5 years time?

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