Plans to expand number, currently at 30, by 20% annually
Cisco plans to increase the number of market adjacencies it is looking to enter by 20% per year. Currently, Cisco is addressing 30 or more such markets beyond its core routing and switching business.
According to this post on the Wall Street Journal site, Cisco CEO John Chambers says his target is to add 20% more market-adjacent businesses each year to fuel the company’s growth. Such businesses include smart grids, TelePresence virtual conferencing, and facilities management and physical security.
Many of these businesses make up Cisco’s Advanced Technologies and Emerging Technologies product segments. Advanced Technologies contributed 23% of Cisco fiscal Q3 revenue of $10.4 billion, growing 18% from last year’s Q3. Specific components, including Unified Communications, wireless, video systems and security, were all up between 9% and 27% from last year’s Q3.
Overall, Cisco’s revenue in Q3 was up 27% from last year, thanks in large part to the contribution of these market adjacencies. In the WSJ post, Chambers said:
“There’s never been a faster ramp-up in the breadth and depth of the products.”
Among Cisco’s initiatives is to build its consumer business into a $3 billion to $5 billion operation, and ultimately into a $10 billion business. Cisco also plans to hire an additional 1,500 workers this quarter and perhaps next quarter; and Chambers himself pledged to stay at the helm for another three to five years.
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