Cisco Systems Inc. Overview

Cisco Systems Inc.

Introduction

Founded December 10, 1984, by a couple of visionary entrepreneurs, Leonard Bosack and Sandy Lerner, Cisco Systems Inc popularly referred to as Cisco is a North American global digital networking technology corporation with its apex office located in San Jose, California. The company basically involves in building, developing, and offering internet protocol-based networking devices and services which is on par with the information technology industry. Cisco Systems Inc focuses on a broad range of market segments to offer its products and services to the public. These segments include but are not limited to video conferencing, domain security, Internet of Things, as well as energy management. The company due to its excellent operation has been ranked multiple times by Fortune in a different categories. First, Cisco Systems Inc ranks #74 on the Fortune 100 list. Second, the company is ranked #3 on the Fortune World’s 25 Best Workplace list. Third, ranks #1 on Fortune 40 Best Large Workplaces in Technology 2022 list. Forth, ranks #274 on the Fortune Global 500 list, amongst other rankings. Its leading product offerings include but are not limited to OpenDNS, Webex, Jabber, Jasper as well as Duo Security. In this article, however, you will be shown a more detailed, comprehensive, and extensive review of  Cisco Systems Inc. The kickoff will begin with the company’s key facts and it will flow to all aspects of its operations, and dealings. As such, all relevant information detailing its key facts, historical background, its divisions, its financial overview, as well as its pros and cons will be concisely covered to enable you to understand the significant and major elements of the global economic and digital networking technology corporation as quickly as possible.        

Key Facts  

Founding Year: Cisco Systems Inc’s earliest history started in the year 1984 approximately 38 years ago 

Industrial Ranking: The company due to its excellent operation has been ranked multiple times by Fortune in a different categories. First, Cisco Systems Inc ranks #74 on the Fortune 100 list. Second, the company is ranked #3 on the Fortune World’s 25 Best Workplace list. Third, ranks #1 on Fortune 40 Best Large Workplaces in Technology 2022 list. Forth, ranks #274 on the Fortune Global 500 list, amongst other rankings. 

Company Type: A Public Corporation Company (PLC)      

Market Reach:   JCisco Systems Inc operates globally and has its offices mounted strategically in several countries across the world.     

Industry Type: Information Technology – Hardware Networking, Software Networking  

Trading Type: Cisco Systems Inc is traded on the New York Stock Exchange (NYSE) market under the ticker symbol, CSCO.  The corporation’s stock is a component of DJIA, the S&P 100, and the S&P 500 respectively.    

Workforce Strength: Cisco Systems Inc has a total number of 83, 300 employees in its workforce globally as of the 2021 report.      

History 

The history as well as the existence of Cisco Systems Inc could be traced back to 1984, and Stanford University’s campus technology is one of the factors that sparks the existence of the company. Prior to the establishment of the company, the two founders who are husband and wife, Leonard Bosack, and Sandy Lerner are both staffs of the ivy league school, and both had leveraged their discipline as well as field to form and run the company. 

In the year 1985, Bosack and Kirk, who were also staff at Stanford University started working on a project in a bid to officially network Stanford’s Campus, and during their travail, one of their colleague’s software was adapted and part of it becomes the foundation of today’s Cisco IOS. 

In the year 1986, Bosack and Kirk resigned from the university after which the university board filed multiple lawsuits against them, including theft of software, and other related intellectual properties. However, all charges against the duo were dropped so that in the year 1987, the university licensed the software and other hardware they claimed were stolen by the duo to their networking company which now operates under the name, Cisco. Research however proves that the name Cisco was a derivative of the San Francisco city in which the company decides to adopt the city’s suffix. 

In the year 1990, Cisco Systems Inc, goes public, and enters the New York Stock Exchange (NYSE) market, enlisting on the NASDAQ stock exchange category with a market valuation of $224 Million USD.  

In the early years of the 1990s, Cisco Systems Inc bought several firms in a bid to advance and expand its Ethernet Switching market scope. The companies Cisco Systems Inc purchased during this period include but are not limited to Crescendo Communications, Grand Junction, as well as Kalpana. The combination of this formed Cisco Systems Inc’s formidable Ethernet Switching business segment. 

In the late 1990s, and early 2000, Cisco Systems Inc built and launched homegrown ASICs as well as fast GSR cards as well as Catalyst 6500 switches. In the year 2004, the company began transiting new sophisticated software architecture tagged with the product name, IOS XR as well as hardware CRS-1.     

In the year 2006, the company underwent restructuring and rebranding with led to the change of its name from Cisco System to “Cisco”. In the same year, in a bid to make the company’s products, a popular brand, and to embrace the relatively low-priced products, the company launched an advertising campaign tagged with the name, The Human Network. 

In the early years of the 2010s, Cisco Systems Inc witnessed a market heat orchestrated by major competitors in the marketplace. As a result, in the year 2011, due to a declination in the company’s expected profit, Cisco Systems Inc responded with a proportionate decline in its annual expenditure which amounts to a total sum of $1 Billion USD. 

In the year 2018, Cisco Systems Inc invested massively in asset acquisition by purchasing Accompany, an AI-built business intelligence company for a total sum of $270 Million USD. And in the same year, in June 2018, Cisco Systems Inc was ranked in the 444th position on the Forbes Global 2000 list. The ranking was however caused by the company’s market capitalization which is as high as a whopping $221.3 Billion USD. 

In the year 019, Cisco Systems Inc bought a customer experience management firm as well as an AI-driven company operating under the name, CloudCherry and Volcea respectively. 

Business Segments & Product and Service Offerings 

The company manufactures an array of products and avails customers of multiple networking services across all its business segments. This section will, however, enlist them according to their categories. 

Networking Business Segments 

Products and services include: 

Switches 

Routers 

Wireless 

Software-defined networking 

Cisco Silicon One 

Cloud and network management 

Modules and Interfaces 

Optical networking 

Wireless and Mobility Business Segments 

Products and services include: 

Access points 

Outdoor and industrial access points 

Controllers 

Security Business Segments 

Products and services include: 

SecureX platform 

Secure Firewall 

Secure Endpoint 

Secure Email 

Secure access by Duo 

Umbrella 

Collaboration Business Segments 

Products and services include: 

Collaboration endpoints 

Conferencing 

CISCO contact center 

Experience management 

Unified Communications 

Data Center Business Segments 

Servers 

Cloud Networking 

Security  

Switches 

Analytics Business Segments 

Nexus Dashboard insights 

Network analytics 

Cisco Secure 

Video Business Segment 

Video endpoints 

Video intelligence 

Cisco Vision 

Internet of Things Business Segment 

Industrial networking 

Industrial security 

Industrial switching 

Industrial wireless, et cetera 

Software Business Segment 

Cisco + (as-a-service) 

Cisco networking dashboard 

Cisco networking software, et cetera 

Key Financials  

Revenue: 51.56 Billion USD (2022) 

Operating Income: 13.97 Billion USD (2022) 

Total Assets: 94 Billion USD (2021) 

Profit: 11.81 Billion USD (2021) 

Total Equity: 39.77 Billion USD (2021) 

Pros and Cons 

The following pros and cons are highlighted according to an in-depth review of the company as well as reviews on Glassdoor. 

Pros

 Broad Spectrum of Brands and Products: Having a vast and comprehensive list of brands as well as products in its archive,  Cisco Systems Inc avails its customers of a pool of brands and products to choose from based on their respective needs.   

High-end Products:  Cisco Systems Inc products tend to be durable and of high quality since they are made by a team of expert individuals.  

Values Diversity: Employees also commented positively on  Cisco Systems Inc’s policy that it values diversity and cultural differences.  

Staff Welfarism: Employee welfarism is another merit of  Cisco Systems Inc as it strives to provide perks like insurance, health, and hazard allowances for its staff. 

Cons 

Resentful co-workers 

Budgeting issues 

Conclusion 

Cisco Systems Inc is a leading company in the information technology industry as you may have observed in the above-detailed sections. However, the secret to this is, not quite far-fetched, it is embedded in the company’s commitment to exceptional and innovative service offerings while helping customers and employees derive value in their respective pursuits. Finally, with all being said in the foregoing sections of this piece, I hope your expectation, as promised in the introductory part of this piece has been met, and that you have adequately absorbed all there is to know about this industry-leading company, Cisco Systems Inc.