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Network World

An industry on the mend

In our annual survey, readers rate Cisco tops in power while finding the network industry back on a healthy track.

By Julie Bort, Network World
December 22, 2003 12:13 AM ET

. What's this?

	2003 Power Rating

	A powerful industry

	Power winners

	How we did it

	CEO Powerometer survey

Cisco edged out Microsoft as the most powerful company in the network industry, according to 250 readers who participated in our annual Powerometer survey. This is only the second time in this survey's seven-year history that Cisco snatched the top spot from Microsoft, the first was in 2000.

HP, too, boomed in power this year, as did Dell, while Sun spiraled down.

Overall, six out of the 20 (or 30%) vendors in the survey have maintained their relative power positions this year over last, while another seven vendors have grabbed power and seven (35%) have given it up (see "How we did it"). For instance, Intel and IBM retained their No. 3 and 4 positions, respectively, as did AT&T at No. 8, Sprint at No. 15 and BellSouth at No. 17. Interestingly, MCI - last place again this year - achieved the survey's highest boost in year-over-year Power Ratings, a 9% jump to 40 from 36.7 in 2002. This places it a mere one-tenth of a point behind No. 19, Novell. With the debt from its record-breaking bankruptcy all but wiped away, a name change (from WorldCom), and a respected, new CEO, MCI has its fist raised and ready for a post-bankruptcy fight to win business.

How we did it

With the help of market researchers Research Concepts, we asked 250 readers to rate the power of 20 network vendors and their CEOs. We used a scale of 1 to 100, with 100 representing the high mark and 1 the low. We calculated the mean to obtain the "Power Rating."

Power Ratings analysis provides two key measures of power: objective and relative. Objective power is determined by comparing a company's or individual's current Power Rating against last year's, which shows how the CEO's or company's own power has altered. Using the Power Rating to rank the companies from 1 to 20 lets us compare vendors against each other. Respondents might perceive a company to be less powerful than it was last year, yet gaining industry power overall. For in-stance, Nortel's Power Rating dropped one full point from its 2002 rating, yet the company climbed one rank to No. 11 in 2003, from No. 12 in 2002.

—Julie Bort

HP increased its power position the most, rising three spots to No. 6. True, SBC also climbed three spots, but HP did so while slightly increasing its year-over-year Power Rating, too (to 56.6 from 56.0 in 2002). SBC's Power Rating, on the other hand, lowered slightly (to 47.5 from 47.9). HP owes its heft in influence to its speedy integration of Compaq and its leading positions in utility computing and other next-generation technologies.

Dell also experienced a big power boost, breaking into the top five for the first time. Verizon is another vendor coming on strong. Almost one-third of respondents named it the datacom vendor best positioned to grab power in 2004.

On the downside, Sun dropped to No. 9 from No. 5 in 2002. Its ongoing anemic financials and market pressure from vendors with less-expensive, Linux-based machines are to blame.