Cisco CEO John Chambers has never been shy when it comes to bragging about Cisco's ability to catch market transitions:
"We build our culture at Cisco around catching market transitions."
After reading an article today in The New York Times, it's my personal opinion that Marc Andreessen is betting $300 million that the next market transition will make Cisco's successful acquisitions model obsolete. How so you may ask? Well, Andreessen plans to watch what companies Cisco acquires:
"Our secret plan is to watch what gets acquired and fund the next company," betting that it will be able to be more innovative than the one that is inside a corporation. "A good template is to fund companies doing whichever the next-generation product would have been," he said. One example: The Flip video camera, made by Pure Digital Technologies. Though Cisco might do very well with the Flip, innovation will probably be incremental, like better software or a new chip, Mr. Andreessen said. He said he was interested to watch what newer digital video camera start-ups might do. "Is Cisco likely to innovate? No, not the way Flip would have," he said.
It's my personal opinion that Andreessen sees as the next market transition, independent companies operating in Silicon Valley able to out innovate Cisco simply because they have no desire to be acquired. Heck, what entrepreneur worth his salt would want to be hogtied by Cisco's new committee culture? I can still see those wishing to cash out selling to Cisco, but the real winners will remain independent. If you had a choice, would you back the technology vision of Marc Andreessen or that of Cisco Chief Technology Officer Padmasree Warrior? Marc Andreessen
Padmasree Warrior
Related story; Netscape Founder Seeks to Fund Next Gates, Jobs
Who are you betting on to win this new market transition, Andreessen or Warrior? BradReese.Com Cisco Refurbished - Services that protect, maintain and optimize Cisco hardware Contact: Brad Reese | Twitter: http://twitter.com/BradReese
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