Cisco’s CEO is Openly NOT Threatened by Open Source Networks: But Should He Be?

Cisco announced handsome quarterly earnings, and their CEO John Chambers is only expecting their profit and revenue to improve. While several ‘white label’ companies and startups are offering cheaper networks by using “off-the-shelf components and open source software,” Cisco is sticking with their closed network, and saw their revenues grow by “7% and forecast 3 to 5% growth for next quarter.” Cisco’s confidence was not even shaken by Facebook’s aptly timed proclamation of their efforts to build a new, open, computer network, just hours before Cisco’s earnings announcement. Chambers does not see these open source companies as a threat “simply because of security.” In fact, most social conversation around Facebook’s announcement was driven by Cisco’s confident response. This confident reaction gained mindshare for Cisco, as they took Facebook’s antagonization in stride, and managed to focus the attention on themselves.

While Chambers does not see Facebook’s developing open network as a threat, others have cautioned that it is a “huge project that should be worrying Cisco.” The companies are swapping blows, as Facebook declared traditional networks (like those offered by Cisco) to be “too closed, monolithic, and iterative.” This view values malleability and speed to keep up with evolving and growing networks, while Cisco is confident that the stability of their closed network will remain appealing.

Cisco is taking advantage of this onslaught of competition to draw more attention to their brand and promote their expected success. Despite Cisco’s scathing confidence, conversation around open source networks continues to grow within SDN discussion. Argus Insights will continue to track brand and technology discussions within the SDN/NFV market. If you are interested in learning more about what is driving conversation about your company, or accessing our SDN/NFV data, please do not hesitate to contact us.

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