Is Marc Andreessen betting $300M against Cisco's successful acquisition model?

It's my opinion that he is.

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:

  1. Enterasys NAC sales triple
  2. New NTIA administrator owned Cisco stock when Cisco granted coveted NTIA Buy American exemption
  3. New worldwide Cisco CCIE count surpasses historic 20K milestone
  4. Average tenure of a senior Cisco executive is 11.5 years
  5. It appears Agito Networks has surpassed competitors on mobile handset technology
  6. Cisco selling refurbished Linksys directly to end users
  7. Will Liquid Computing pour cold water over Cisco's ambitious unified computing system?
  8. New Apple iPhone 3G S will kill the Cisco Flip video camera
  9. How to reduce the high cost of T1 service
  10. New Cisco tool for those who don't know or use binary math
  11. Comment from Network World reader removes Cisco SVP Judy Lin's face from Cisco's Mount Rushmore of senior executive biographies
  12. Executive who outsourced U.S. jobs to India appears to be leaving Cisco
  13. Cisco SEC filing: Unable to reasonably estimate a range of loss, if any for Cisco Brazilian subsidiary
  14. Cisco may invest more than $500M in new data center located near Dallas, Texas
  15. Director-class switch dustup between Brocade and Cisco over Miercom lab test results
  16. Robert Lloyd, most likely successor to Cisco CEO John Chambers goads channel partners to wallop HP ProCurve
  17. Cisco loses $1M AT&T Park deal to pip-squeak competitor ShoreTel
  18. 4 key points on broadband stimulus money
  19. Has EMC rustled Data Domain away from NetApp, HP and Cisco?
  20. View Brad Reese on Cisco Story Archives
Join the Network World communities on Facebook and LinkedIn to comment on topics that are top of mind.

Copyright © 2009 IDG Communications, Inc.