Chambers Maps Out Cisco's Key Growth Markets

Cisco Systems Chairman and CEO John Chambers on Tuesday anointed converged video, data center virtualization, the connected home and the next-generation service provider infrastructure as key growth markets for the networking vendor in the coming years.

Pounding home his now-familiar mantra that the network will become the platform for all communications, Chambers spotlighted several areas in which the San Jose, Calif.-based company is investing over the next three to five years.

"If there is a killer app, it's video," Chambers said during a keynote address at the Cisco C-Scape Global Forum 2006 industry analyst conference in San Jose. "Just watch what has occurred with YouTube, just with what I would call baby steps in terms of loads on networks."

Cisco executives outlined a broad vision to provide converged video solutions across a variety of technologies and market segments.

Aside from its recently launched TelePresence line of high-definition videoconferencing wares, Cisco also plans to tie in pieces such as video content management, video surveillance and IPTV across business and home markets, said Charlie Giancarlo, chief development officer and president of Cisco-Linksys.

"We want to bring the same video capabilities to the home, workplace and mobile markets for the purposes of entertainment, collaboration and safety," he said.

Chambers also cited virtualization as a key focus area for Cisco over the next several years, noting that what will start in the data center will spread out into other markets.

"You'll see us focus there in the data center first. But make no mistake about it. We will move it all the way out, if this market plays out the way we think it will, to the home," Chambers said.

Two strategies that go hand in hand are Cisco's plans to focus on the connected home market and next-generation "quadruple play" service provider infrastructure that's capable of delivering data, voice and video to home users via fixed and mobile devices.

"We're going to expand our consumer strategy. We've dealt ourselves a real nice set of cards. We've got to do a much better job in terms of seeing how we can tie them together," Chambers said.

Overall, Chambers expressed optimism about Cisco's path and growth prospects. "The opportunity to be the major company in communications and IT is in front of us," he said.

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