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Cisco to lay off about 14,000 employees

reuters.com

41–50 of 294 posts

Re: Cisco to lay off about 14,000 employees

#41
post #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…

Much of their hardware is just commodity x86 or ARM parts.

Re: Cisco to lay off about 14,000 employees

#42
post #37
post #19

Earlier quoted context omitted.

The networking field, as with the server hardware field, is seeing a movement towards commodity hardware. Custom network silicon is expensive to develop, and no longer is returning the investment that it did. This is cause companies like Juniper and Cisco to look at ways to expand their profits, while essentially making nothing on the hardware. Cisco along with others are looking by at things like licensing the IOS t…

> Cisco along with others are looking by at things like licensing the IOS to run on any device. ios is a custom-rtos for a custom machine (running on mips mostly). it runs control plane for your routers/switches etc. why would you want to run it on a non-csco/vanilla x86 boxes ? unless you can _somehow_ make control-plane h/w agnostic (easier said than done) i don't really see much value in doing this.

You may not. But large enterprises that pay billions a year for networking gear, who can save a billion by buying whitebox, and still get that Cisco feel that they have spent years training and acquiring expertise will and already are. It may not be IOS. But Cisco will come out with something that feels and operates like IOS that runs on x86. Juniper has already ported it's JUNOS to run on x86.

Between whitebox and SDN. These companies won't be selling hardware for the 1-200% markup the have enjoyed all these years.

Re: Cisco to lay off about 14,000 employees

#43
post #37
post #19

Earlier quoted context omitted.

The networking field, as with the server hardware field, is seeing a movement towards commodity hardware. Custom network silicon is expensive to develop, and no longer is returning the investment that it did. This is cause companies like Juniper and Cisco to look at ways to expand their profits, while essentially making nothing on the hardware. Cisco along with others are looking by at things like licensing the IOS t…

> Cisco along with others are looking by at things like licensing the IOS to run on any device. ios is a custom-rtos for a custom machine (running on mips mostly). it runs control plane for your routers/switches etc. why would you want to run it on a non-csco/vanilla x86 boxes ? unless you can _somehow_ make control-plane h/w agnostic (easier said than done) i don't really see much value in doing this.

[deleted]

Re: Cisco to lay off about 14,000 employees

#44
post #23
post #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…

The software will run on inexpensive dumb hardware from whitelabel manufacturers such as Quanta computers. The secret sauce in hardware that gave Cisco big margins is increasingly replaced by software that is good enough (e.g. You can use SDN controller and a cheap switch hardware to replace very expensive Cisco stuff). The trend in Enterprises and telcos is to use cloud (AWS, GCE, Azure,...) and open source (aka Fac…

> all new deployments must be on Openstack

you have my sympathies

Re: Cisco to lay off about 14,000 employees

#45

Winter is coming.

And its going to get lot worse without company subsidized health insurance.

In fairness, Cisco has offered excellent severance in the past...but then again, they've never done layoffs on this scale

Re: Cisco to lay off about 14,000 employees

#46
I live down the street from Cisco HQ. I share an apartment building with many of their engineers. Perhaps it is anecdotal, and my evidence comes purely from speaking with them (I have never seen their work), but they come across as absolutely terrible as software engineers. They seem like the kind of company destroying people that are the death knell of every software giant. They have no care for the product, good programming, or their company. Their main goal is to just have a job and fly under the radar.

Re: Cisco to lay off about 14,000 employees

#47

I live down the street from Cisco HQ. I share an apartment building with many of their engineers. Perhaps it is anecdotal, and my evidence comes purely from speaking with them (I have never seen their work), but they come across as absolutely terrible as software engineers. They seem like the kind of company destroying people that are the death knell of every software giant. They have no care for the product, good pr…

I can guarantee you most of them are Indians.

Re: Cisco to lay off about 14,000 employees

#48
post #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…

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

The manufacturers that have been actually making the hardware for the last 15 or more years, that's who. The only difference in many cases is the color and brand on the case.

Re: Cisco to lay off about 14,000 employees

#49
post #3

Earlier quoted context omitted.

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.

It's like this already -- you pay yearly maintenance fees for access to software upgrades. If you let it lapse and then want to re-enroll, you're still on the hook for the lapsed time. Maintenance fees typically don't include your support contract fees, either.

Re: Cisco to lay off about 14,000 employees

#50
post #42
post #37

Earlier quoted context omitted.

> Cisco along with others are looking by at things like licensing the IOS to run on any device. ios is a custom-rtos for a custom machine (running on mips mostly). it runs control plane for your routers/switches etc. why would you want to run it on a non-csco/vanilla x86 boxes ? unless you can _somehow_ make control-plane h/w agnostic (easier said than done) i don't really see much value in doing this.

You may not. But large enterprises that pay billions a year for networking gear, who can save a billion by buying whitebox, and still get that Cisco feel that they have spent years training and acquiring expertise will and already are. It may not be IOS. But Cisco will come out with something that feels and operates like IOS that runs on x86. Juniper has already ported it's JUNOS to run on x86. Between whitebox and S…

> Juniper has already ported it's JUNOS to run on x86.

huh :) i was/am under the impression that with junos, juniper started with freebsd as the core, and then added lot's of stuff to it, specifically in control-plane and a bunch of kernel extensions as well.

if that is true, they were already x86 compatible...

with cisco things are very different. i don't think ios ever ran on a bare-metal x86. this is not for the lack of trying though (if you know folks who have worked on ios, check with them, writing about it here, doesn't seem right)

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