massive cisco layoffs (again, but this time 14k)

[wintermute000]

http://www.crn.com/news/networking/300081750/sources-massive-layoffs-coming-at-cisco.htm?itc=hp_todays_news

[EOS]

OUCH!

[LynK]

competition is strong.

[AnthonyC]

http://www.wired.com/2015/10/meet-walking-dead-hp-cisco-dell-emc-ibm-oracle/

[deanwebb]

Says Cisco is becoming a software company?



Because if there's one thing that people RAVE about, it's those great Cisco management interfaces... sheesh... this is the company that made the ACS interface that explodes in your face if you edit it with Firefox.

I don't know whether to or to

[icecream-guy]

it's only 5500 today

[deanwebb]

it's only 5500 today

And the market, expecting 14,000, shot down Cisco's stock price. 5500 layoffs isn't as profitable as 14,000.

[NetworkGroover]

Can I just say, "I told you so"?

I remember getting flamed for what appeared to be "bias opinions" years ago by the likes of Vito and others. 

Anyway, yeah it's nuts.  But - maybe it's this drastic move that will get their heads out of their rear... but I think they went a long time without any *real* competition and it's going to be hard for them to catch up, none-the-less regain the leadership position they once held.

[deanwebb]

Most of the layoffs are going to be in sales and back office staff, since the existing reps can handle another product or two and the guys pushing office supplies aren't really a value-add.

But, yeah, going in as a software company... looks like we're headed towards network hardware as a commodity.

[icecream-guy]

But, yeah, going in as a software company... looks like we're headed towards network hardware as a commodity.

there ain't no hardware in SDN 

[NetworkGroover]

Someone just pointed out to me that Cisco laid off more employees in this go than Arista has employees (using the 5.5k number).....

[burnyd]

lols I wish them the best luck in becoming a "software company"

[deanwebb]

I worked at Microsoft when Ballmer said they were becoming a services company. Most of us took it to mean services as in consulting, which they really pressed on for a while. But it was actually services as in software rental, primarily to the corporate world, but with increases in bandwidth they finally got to that model with the desktop, about 15 years after deciding to be a services company.

So, to get Cisco to be a software company, there will be some changes to licensing. There also have to be changes to the code. It has to be where it can be run on any platform, more or less, so if you have a bunch of 10 gig ports made in some factory somewhere, Cisco doesn't care. Download the Cisco code and slap it on the bare metal and you will be switching and routing, no problem.

The compelling factor there has to be in providing the software that the firms will want. Not necessarily because it's the right product, but because it's the right product at the right price. Accounting is architecture, after all. There's a lot of old farts that will only be comfortable with a Cisco CLI, but Cisco also has an edge in education - if they can get their programs into schools, they can churn out some IT kids who will be comfortable with the Cisco CLI and that's what firms may turn to in order to save on training costs.

That last bit, though, I don't see happening because it's VERY long-term and visionary. But, if Cisco said they'd pay for a teacher at a local high school to teach CCNA stuff, that school would snap it up, especially if it came with a slight discount on Cisco stuff. The guy is part of the school district, but he gets paid more than the head coach because his salary is underwritten by Cisco. There are risks of that position, but DANG I would have snapped that up if I had been offered it...

[NetworkGroover]

I worked at Microsoft when Ballmer said they were becoming a services company. Most of us took it to mean services as in consulting, which they really pressed on for a while. But it was actually services as in software rental, primarily to the corporate world, but with increases in bandwidth they finally got to that model with the desktop, about 15 years after deciding to be a services company.

So, to get Cisco to be a software company, there will be some changes to licensing. There also have to be changes to the code. It has to be where it can be run on any platform, more or less, so if you have a bunch of 10 gig ports made in some factory somewhere, Cisco doesn't care. Download the Cisco code and slap it on the bare metal and you will be switching and routing, no problem.

The compelling factor there has to be in providing the software that the firms will want. Not necessarily because it's the right product, but because it's the right product at the right price. Accounting is architecture, after all. There's a lot of old farts that will only be comfortable with a Cisco CLI, but Cisco also has an edge in education - if they can get their programs into schools, they can churn out some IT kids who will be comfortable with the Cisco CLI and that's what firms may turn to in order to save on training costs.

That last bit, though, I don't see happening because it's VERY long-term and visionary. But, if Cisco said they'd pay for a teacher at a local high school to teach CCNA stuff, that school would snap it up, especially if it came with a slight discount on Cisco stuff. The guy is part of the school district, but he gets paid more than the head coach because his salary is underwritten by Cisco. There are risks of that position, but DANG I would have snapped that up if I had been offered it...

That is smart infiltration, and helps build brand loyalty.  Their certification program and Academy really helped people think that there was nothing in the world but Cisco - quite amazing when you step back and take a look at the big picture.