Thursday, 11 August 2011

Cisco Shows Positive Signs

Cisco has managed to surprise the critics by delivering results better than expected. It's a clear indication that the demand of IT is rising again. The vendor’s success, though, hasn't come without a few difficult choices made by CEO John Chambers. They've had to review the under-performing areas, axe the job positions they could do without and have come up with a simplified ‘better performing’ organisation.

The vendor had earlier announced thousands of job cuts and planned to save an average of $1bn and year – at the same time though, the Chairman and CEO has ruled out sacrificing innovation to keep costs down. It seems that this approach has worked well for them – the vendor produced a 7.9% increase in net sales for the fiscal year.

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