Feature Story

December 10, 2004

Cisco Systems traces it roots back to 1984, when Stanford University computer scientists Sandy Lerner and Len Bosack, with the expertise of Greg Salz and Kirk Lougheed, set out to enable disparate networks to talk with each other.

Twenty years - and thousands of innovations later, Cisco stands today as an industry leader with approximately $22 billion in annual revenues. It has a thriving workforce, is results-focused and has a culture of community investment.

On the occasion of the company's 20th anniversary, Cisco CEO John Chambers, CTO Charles Giancarlo, Sr. VP of Human Resources Kate DCamp and VP of Corporate Affairs Tae Yoo spoke with News@Cisco about what has made Cisco so successful and what the next 20 years may hold.

When you reflect on the many successes Cisco has achieved in its first 20 years, what are you most proud of?

John Chambers: I'm extremely proud of the people who make up the Cisco family. They're the foundation of everything that makes Cisco the great company it is today. The Cisco team has consistently managed to attain the goals we set, no matter how challenging the times. They're the source of the technology innovation that has helped drive dramatic improvements in education, productivity and standards of living around the world. And our corporate philanthropy, of which we're all so proud, could not happen without the personal involvement and passion of our employees around the globe.

You've often said that the power of the network affects how people work, live, play and learn. How will the future of networking change this?

John Chambers: I truly believe that Cisco's innovative networking and software technology is changing the way people work, live, play and learn. It has enabled productivity and quality of life improvements - on an individual, company, and even global scale - that we couldn't have imagined when Cisco started out. From the networking improvements that help hospitals and physicians reduce costs and save lives to the Jordan Education Initiative, an e-learning project that will serve as a model for future public/private partnerships enabling social and economic development, it's incredible to see the tangible ways in which Cisco networking technology has affected peoples' lives.

And this is only the beginning, the future holds so much more. As networks become more pervasive and more intelligent, the opportunities to help improve they way we work, live, play and learn are almost limitless. Networking technology and software, coupled with business and government process change, will continue to improve productivity (which increases standards of living), increase the access to and quality of education, and lessen the digital divide. In these and so many other areas, it's very exciting to consider what we'll be able to accomplish going forward.

What's your vision for Cisco as the company continues its industry leadership into the next 20 years?

John Chambers: Cisco has been successful by staying focused on results and catching market transitions - and by listening to our customers. I expect us to maintain that strategy. We're just beginning to see the many ways in which the Internet can positively impact individuals, companies, and countries, so as far as the contribution that Cisco can make, the sky's the limit.

The Internet has had - and continues to have - a revolutionary impact on business, but moving forward, we'll see that influence even more on an individual level - in everything from education and home entertainment to health care. Particularly in the area of education, Cisco is poised to continue its leadership role in bringing the power of the network to learning programs worldwide - such as the Jordan Education Initiative I mentioned before and the Cisco Networking Academy program.

I truly believe that Cisco with its talented employee base, breadth and depth of innovative products, services, and solutions, financial strength, and customer focus is uniquely positioned to be a company not only built to last but built to lead.

Cisco is virtually synonymous with technology innovation today. What's the secret to its ongoing success in this realm?

Charles Giancarlo: It starts with hiring the best and the brightest and then creating an environment where bright people can take risks. That includes allowing people to fail every now and then. We also try to keep the focus on innovations that address a customer need.

At Cisco, innovation doesn't mean creating technology for its own sake. We're always thinking about how to innovate to solve a particular problem or to help a customer be successful. Our innovation is very customer-centric.

What is your strategy, moving forward, for maintaining a leadership position in helping customers address their critical communications challenges, like network security?

Charles Giancarlo: Security is certainly a fundamental component of everything we do today. Network security has become vitally important because the corporate network is now the organization's critical "nerve system" and a strategic asset.

Of course, security is an evolving process. Cisco started out by delivering point security technologies, such as firewalls and virtual private networks. More recently, we began offering integrated security solutions, with security built into our access routers, for example. And already in development is our next generation of security technology that will make possible true self-defending networks that can identify, prevent and adapt to threats, no matter what they are or how they arrive.

Moving forward, with our continued focus on security and our other Advanced Technologies, Cisco will be in a strong position to maintain our industry leadership.

Looking ahead to the next 20 years, what does the next phase of networking look like?

Charles Giancarlo: Our core technologies, routing and switching, will always remain important to Cisco. In addition, we're building up a strong group of Advanced Technologies. These currently include security, optical, IP communications, home networking, wireless LAN and storage networking, but over time, we'll continue to add new technologies to this list. An important aspect of our Advanced Technologies is not just how they perform independently but how they can be integrated with the core technologies and with each other. One of Cisco's key differentiators has been our ability to offer this kind of integration.

The next wave of Internet development will be driven by end user demands for new and innovative applications and services. Network absorption of some of the functionality of apps and services is what will make it possible for them to continue scaling and increasing in performance. That means network intelligence has never been more relevant and more advantageous to the entire system.

Our vision for an Intelligent Information Network is driven by the evolving needs of users in all our customer segments. Such a network creates opportunities for businesses, service providers, and consumers to lower costs and to access an array of benefits that make the network more responsive, more flexible, and more effective at addressing challenges, the ones we know today and those of the future.

Over the past 20 years, Cisco has experienced tremendous growth. What has been the key to growing successfully at this pace? How have you maintained the corporate culture?

Kate DCamp: Maintaining our corporate culture is intimately linked with our success. There are a number of key factors that contribute to Cisco culture. First and foremost is the idea of customer advocacy, which dates back to our founders. Of course, two critical parts of that are listening to the customer and ensuring that we have quality products and services.

The company's culture has also been based on open communication, empowerment of our employees, teamwork and the fact that when the company wins, everyone wins. This atmosphere has built a strong community that works together to create the success we've witnessed to date.

It's these things that have sustained and guided our growth for the past 20 years and that will be the basis of our success in the next 20-and beyond.

How has employee development played a role in helping a company maintain a competitive advantage - and how do you accomplish this at Cisco?

Kate DCamp: At Cisco we've always understood that our employees are our best asset. A balanced work force strategy starts with finding talented candidates and making sure managers have a diverse slate from which to choose. Building from that point, it's about nurturing and developing this talent to its full potential.

It's our employees who bring the tremendous wealth of ideas, innovation and drive to the organization, which allows Cisco to be well positioned to anticipate important market changes, be more responsive to customer needs and build a solid foundation for its future needs.

At Cisco, we're building a company for the long term, and having the strongest possible work force helps gives us a lasting competitive advantage.

One of Cisco's core values is the culture of giving back. How did this begin and what are some of the ways in which Cisco has given back during the company's first 20 years?

Tae Yoo: Cisco has always been a company that believes in being an active member of the community. It began in our early days as a start-up company in East Menlo Park. It was not unusual to see employees jumping the fence to support the neighborhood school. Our employees adopted the school and spent a lot of time volunteering their time and expertise doing student mentoring and helping them build a network. This was the first step that today has become our strategy for addressing social needs and issues globally through strategic partnerships. For example Cisco partners with the World Economic Forum to create the Jordan Education Initiative, which is reforming education at the K-12 level in Jordan, which will ultimately be used as an education model for other countries in the future. Additionally, we have supported Community Voice Mail, which provides voicemail services to the homeless and those who do not have access to a phone number, which is critical for finding a job and services. We also have a long-standing partnership with Habitat for Humanity, in which Cisco provided employees and financial support that resulted in over 420 houses being built.

Cisco believes in strategic philanthropy and as a result we are focused on three areas --providing basic human needs, access to education and economic opportunity. Our philosophy has been to leverage our business and technical expertise through our partners, in addition to financial support to benefit the community, in addition to writing checks

On a day-to-day basis, it means that individuals and communities around the world are being impacted by Cisco employees who donate their time and money to help improve their communities. Whether it's packaging food for Second Harvest, helping community organizations improve their networks or building homes with Habitat for Humanity International, giving back is a year-round, company-wide effort.

Cisco works hard to help improve the global community in which it operates. What kinds of specific programs does Cisco operate, and what makes them so successful?

Tae Yoo: We have a very strong commitment to education, which we see as a real enabler for economic development and opportunities. And with that in mind, we've made a significant investment in educational programs that could scale around the world because we have an expertise in the delivery of content and e-learning via the Internet.

One of the programs we're most proud of is the Cisco Networking Academy - a comprehensive, global e-learning program that teaches the Internet technology skills needed to prepare students for the 21st century work force. The Academies, which can now be found in 152 countries, are succeeding every day in teaching students the skills they need to join the information age and to help their communities.