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Cisco Systems


The American company Cisco Systems is engaged in production of network and telecommunication equipment and software development for management of computer networks. Works under five brands: Cisco, Linksys, WebEx, IronPort and Scientific Atlanta.


66050 employees in 2008


By August, 2019 the structure of business of Cisco is divided between the following main directions:

  • Infrastructure Platforms (switches, routers and solutions for data centers);
  • Applications (the software and products for teleconferences);
  • Security (solution for information security);
  • Services (services).

Performance Indicators

Main article: Financial performance of Cisco Systems

Financial year comes to the end at the end of July.

2019: Growth of revenue by 5% to $51.9 billion

In 2019 financial year which end fell on July 27 of the 2019th calendar revenue of Cisco reached $51.9 billion, having increased by 7% concerning the 2018th. Sales to the company grow two years in a row that is promoted in many respects by solutions in information security field (cybersecurity).

The division (Security) which is responsible for such technologies completed 2019 a fiscal year with turnover in the amount of $2.73 billion that for 16% exceeds an indicator of year prescription. These growth rates were the highest among all Cisco business directions.

Financial performance of Cisco
Financial performance of Cisco

In the division of Applications which is responsible for the software and products for teleconferences the 15 percent growth of an annual turnover to $5.8 billion is recorded.

The most part of income are still the share of a segment of so-called infrastructure platforms (its basis are switches and routers), which in 2019 brought corporations of $30.19 billion revenue. It is 7% more than rather previous year.

Service business also grows: for the 12-month period closed at the end of July, 2019, revenue increased by 2% here and there were equal $12.9 billion.

As for regions, the most part of income of Cisco is still brought by the countries of North and South America. In 2019 reporting year revenue in these markets reached $30.93 billion, for 6% having exceeded value of year prescription.

For 5% sales to the company increased in EMEA region, they made $13.1 billion there. Revenue of vendor was measured in the Pacific Rim by $7.88 billion, having shown growth by 1% in comparison year by year.

In 2019 financial year Cisco had a strong jump of profit — to $11.62 billion to $110 million. Small profit in the 2018th is caused by write-off in the amount of $10.4 billion in connection with tax reform in the USA, is explained in the financial statement.[1]

Cisco in Russia

Основная статья: Cisco Systems Russia (Cisco Systems)

Cisco Systems LLC - perform activity of the company in Russia.

Merger of other companies

Main article: Merger of Cisco

For the history the American corporation Cisco purchased hundreds of the companies. Overview of many transactions here.



to Troy the staff of Cisco is sent away to the competitor, having taken classified documents

On November 19, 2019 it became known that three employees of Cisco left to the competing company — Poly, having taken thousands of classified documents.

Cisco filed a lawsuit against Wilson Chung, James He and Jeddah of Jedd Williams "for gross violations of intellectual property rights", writes the Silicon Valley Business Journal edition with reference to the representative of the company Robyn Blum.

Staff of Cisco left to the competing company — Poly, having taken thousands of classified documents
Staff of Cisco left to the competing company — Poly, having taken thousands of classified documents

According to him, the company seldom submits such claims, and does it for protection of the investments into researches, developments and "valuable intellectual property".

According to the complaint of Cisco, Wilson Chiang and James He, working in division of Unified Communications Technology Group, shortly before care in Poly downloaded several thousands of confidential documents which belong to the company and concern development, production, the prices and assessment of market opportunities of the products Cisco. They tried to cover up tracks, but the producer of network equipment detected the fact of copying of commercial secrets.

As for Jeddah Williams, it, holding in Cisco executive position in sales department, to the middle of October, 2019 loaded the spreadsheet of Cisco with forecasts for sale, and then announced dismissal for the personal reasons. Soon it passed into the same competing firm, as two other employees.

Also Williams is accused of implementation in Poly of strategy of work in the market which he called Project X and developed being an employee of Cisco.

After the appeal of Cisco to court of the stock Poly fell in price for 2%. At the beginning of November, 2019 their cost fell for a quarter because of weak financial results. Market capitalization of Poly makes a little more than $1 billion against $193 billion at Cisco (for November 20).[2]

How many bosses of Cisco earn

At the end of October, 2019 Cisco provided the Securities Commissions and the exchanges of the USA (SEC) documents in which opened the income of top managers.

In 2019 financial year the CEO of the company Chuck Robbins earned from the post $25.83 million against $21.28 million the previous year. The most part of a compensation packet ($18.58 million) fell on payment of remunerations in the form of actions. Besides, paid to the head salary in $1.33 million (in 2018 reporting year — $1.23 million) and a cash bonus in the amount of $5.79 million.

Cisco provided the Securities Commissions and the exchanges of the USA (SEC) documents in which opened the income of top managers
Cisco provided the Securities Commissions and the exchanges of the USA (SEC) documents in which opened the income of top managers

In materials for SEC it is said that under the leadership of Robbins Cisco received record revenue which in 2019 to a fiscal year exceeded $50 billion Besides, Robbins formed "the highly effective leading team based on his requirement to development of innovations, deep attention to interfunctional partnership, a variety and exclusive results".

Kelly Kramer's earnings on a post of the executive vice president and chief financial officer of Cisco according to the results of 2019 financial year appeared to equal $13.63 million whereas in the 2018th it made $11.44 million. Wages of the top manager were raised from $763 thousand to $850 thousand, the monetary bonus was increased from $1.86 million to $2.11 million, the award in the form of stocks of the company is raised from $8.75 million to $10.61 million.

Cisco noted that thanks to Kelly Kramer the company in 2019 financial year made five acquisitions and made integration of the purchased companies that "led to accomplishment of tasks of products and finance" and also to "strong keeping of employees".

To David Goeckeler, the executive vice president and the head of department of Cisco Networking and Security, in 2019 about $12.33 million were paid to a fiscal year that exceeds an indicator of year prescription ($11.09 million).[3]

Cisco closes own data centers and transfers data to public clouds

On August 15, 2019 it became known of the solution Cisco to close a part of data centers and to transfer more data to public cloud services. Thereby the American company wants to reduce electricity consumption and expenses on it.

By August, 2019 Cisco has 22 data centers which are located in the different countries. Within five years this quantity is going to be reduced by 30%, the Chief information officer of the company Jacqueline Guichelaar in an interview to the The Wall Street Journal (WSJ) newspaper reported.

Jacqueline Gishelaar
Jacqueline Gishelaar
Being the technology company we bear huge responsibility for always to think of energy consumption optimization — she told.

Before arrival on the Chief information officer's position in February, 2019 of Gishelaar took the leading positions connected with technology in Thomson Reuters, Deutsche Bank and other large companies. In them she gave a problem of influence on the environment, and having passed into Cisco, Jacqueline Gishelaar made this question one of priority.

Referring to given Institute of engineers of electrical equipment and electronics (Institute of Electrical and Electronics Engineers, IEEE), the Chief information officer of Cisco says that electricity used by one data processing center can provide with energy up to 25 thousand households. Owing to such statistics to the technology companies to remember importance importance of the correct use of the resources, she added.

By words Gishelaar, more than 10 years of Cisco develops initiatives, the directed to ecologically safe, rational and expected a long-term outlook use of natural resources.

In 2008 the company began to reduce emissions of greenhouse gases, using technologies which consume less energy, such as dedicated chips and fiber optic cables. The American producer of network equipment is going to use renewable energy sources for satisfaction of at least 85% of the world needs for the electric power by the end of 2022 financial year.

Cisco closes own data centers and transfers data to public clouds
Cisco closes own data centers and transfers data to public clouds

As notes WSJ, Jacqueline Gishelaar is not the only Chief information officer who brings up questions of ecological influence of data centers of the companies. Within these strategy they aim to switch to public cloud services as their providers develop hyper scalable DPCs which are more energy efficient in comparison with corporate objects. Hyper scalable objects are often equipped with the uniform equipment having identical indicators of energy consumption and lives — at the expense of it the energy efficiency in comparison with DPCs of the companies using the diverse systems, which joint functioning too costly in terms of the electric power is partly reached.

Some competitors of Cisco already completely transferred the IT infrastructure to a public cloud. For example, so made Juniper Networks, having used services Amazon Web Services and Microsoft Azure. The Cisco company also uses public clouds for the infrastructure, but does not reveal what WSJ, said in the publication.

The Internet, including computing infrastructure, can consume up to 15% of all electric power in the world and select up to 20% of the world emissions of carbon connected with power by 2030, speaks the researcher from Huawei Technologies Anders Andrae considers. By 2019 these indicators are 7% and 3% respectively so far.

Problems of the environment and cost sometimes go hand in hand — Jacqueline Gishelaar said.[4]

Loss of state orders in China

On August 14, 2019 it became known that state companies in China ceased to place orders at Cisco. It led to 25 percent falling of revenue of the American producer of network equipment in the country.

Many years we sold infrastructure to large operators in China, and all this time of sale decreased. Now this falling strongly accelerated what we, frankly speaking, expected — the CEO of Cisco Chuck Robbins on a conference call with analysts on the occasion of the publication of the reporting for 2019 financial year said. — We are not invited to tenders any more. To us do not permit to participate in them any more.

Cisco cut off from state orders in China
Cisco cut off from state orders in China

As the chief financial officer of Cisco Kelly Kramer reported, the Chinese companies ceased to buy the equipment of Cisco and instead of it prefer products of local producers.

Somewhat it is nationalism — she told.

Problems in the Chinese market led to the fact that Cisco made the forecast for income below expectations of analysts. According to the results of the first quarter of 2020 financial year of Cisco expects sales growth for 0-2%, to $13.07-13.33 billion whereas the analysts polled by Refinitiv predict revenue in the amount of $13.4 billion. The forecast of Cisco for adjusted earnings also fell short of expectations of Wall Street — 80-82 against 83 cents on an action respectively.

The weak forecast led to decline of quotations of Cisco by 4% to closing of the exchange on August 14, 2019. At electronic biddings on the same day actions fell in price by 8%, up to $46.6, notes the The Register edition.

According to Reuters though sales of Cisco in China were sharply reduced, is the share of them less than 3% of all revenue of the company. Decrease in orders from large enterprises, especially in Britain, also negatively affected financial performance of vendor.[5]

Cisco punished for sale of the rejected software for video surveillance to the U.S. Government

On July 31, 2019 it became known that Cisco agreed to settle the legal claim which initiators accused the company of sale of the rejected software to the American government. This case can become a precedent for similar trials in the future. Read more here.

Opening of competence center in EMEAR region

The Cisco company announced on March 5, 2019 expansion of network of support of business in EMEAR region where Russia and the countries of Europe, the Middle East and Africa enter. For this purpose the company opens competence center in Lisbon, Portugal. Along with already operating similar organizations in Brussels and Krakow, the Lisbon center will render high-quality services in maintenance, management of networks and optimization in all region of EMEAR.

In competence center an opportunity to show the capabilities on customer service in spheres of planning, design, implementation, optimization and technical support of networks will be found by both experienced engineers, and recent graduates of educational institutions. Workforce recruiting started at the end of February, at the same time preference will be given to specialists in information security field, corporate networks and data processing centers.

Customers in the region of EMEAR and around the world accelerate processes of digitalization in all sectors of economy. Servicing the customers and partners implementing Cisco technologies which form a basis to digital transformation the Lisbon center will help them to receive the maximum return from the applied technological solutions, are sure of the company.

Providing high-quality services in difficult technical support — one of the key directions of development Cisco. We are glad to opening of competence center in Portugal which will play a key role in implementation of global strategy of Cisco on service of customers, partners and internal interested persons of our organization both in EMEAR region, and beyond its limits — Phil Wolfenden, the vice president of Cisco company who is responsible for work of competence centers in EMEAR region said.


Increase in prices for thousands of products because of the Trump's duties

In the fall of 2018 Cisco raised the prices almost of 3 thousand products after the president USA Donald Trump introduced additional duties.

Between China and the USA since June, 2018 there is a trade war. Strong escalation of the conflict happened on September 24 when the U.S. Government introduced the 10 percent customs duties on goods from Celestial Empire which cost is estimated at $200 billion.

As the head of one of the American partner companies Cisco told the CRN edition, the producer of network equipment shifted the costs which increased in connection with new duties for the prices of each device manufactured in China. Cisco sent to the partners the list from 2850 products which value addition concerned.

Cisco raised the prices of thousands of products after introduction of additional duties on commodity importation from China
Cisco raised the prices of thousands of products after introduction of additional duties on commodity importation from China

According to the interlocutor, many lines of the equipment of Cisco, including some routers Catalyst, hyper convergent infrastructure solutions HyperFlex HX, routers  of families 3900, 4300 and 4400, the ASR 900, 920 routers rose in price, 1000 and 9000.

Cisco confirmed to CRN updating of quotations on products towards increase, having stated that duties "include network equipment in all market, and the related expenses are compensated by the change in price".

Cisco will continue interaction with Presidential Administration on the matter. We hope that the USA and China will be able to find through joint efforts the solution by negotiations — noted in the company.

Cisco also warned partners about one more wave of increase in prices which is expected in January, 2019 in connection with new duties against China. The White House stated that if China takes response measures, then Washington will immediately set additional rates for $267 billion.

The partners polled by CRN say that the competition can escalate if Cisco makes and deliver more network components from China to the USA, than other companies in the market.[6]

Payments to top managers, including the head are published

At the end of October, 2018 Chuck Robbins's earnings on a post of the CEO of Cisco became known. The top manager earns in 160 times more of the average employee of the company. Income of other heads also considerable. Read more here.

Removal of advertizing with YouTube

On May 10, 2018 Cisco announced removal of the advertizing with YouTube as the company is afraid that its declarations began to appear in unseemly videos.

As the marketing director Karen Walker wrote in the blog Cisco, it is not pleasant to the company that its advertizing "accidentally gets to improper places, for example, in stream video with an inappropriate content". She also added that the producer of network equipment will continue to use YouTube as the platform for distribution of the video records.

Cisco deleted advertizing with YouTube because of its emergence in undesirable videos
Cisco deleted advertizing with YouTube because of its emergence in undesirable videos
Some platforms do not trace properly content on the websites. We in Cisco would prefer not to wait until there is something bad. Though Google and Facebook took some steps in the solution of this problem, we withdrew all online advertizing with YouTube until the platform does not meet our standards — wrote Walker.

As notes Business Insider, the message of Cisco about failure from advertizing on YouTube was removed from the website at several o'clock then the edited version in which mentioning of YouTube was gone was published. In new record the director wrote to marketing that the company monitors that its advertizing was not placed in videos or on the websites which are not matching brand values.[7]

Cisco explained adjustment of the message with the fact that the company wanted to point to a problem in the market without specification of partners or clients.

In April, 2018 the CNN TV channel announced emergence of advertizing from 300 companies, including Cisco, on extremist to YouTube channels. In a plot it was noted that business, that without knowing, can help financing of these channels by advertizing.

As a result of this scandal of Google decided to review rules of YouTube, to increase the staff of moderators and to implement additional AI algorithms of content filtering.[8]

Average length of service of employees — 7.8 years

In April, 2018 it became known that in Cisco the average working life of one employee makes 7.8 years. The producer of network equipment provides gym, pays five days off a year for public work, compensates expenses on training and every quarter issues awards for participation in welfare actions. Read more here.


City Infrastructure Financing Acceleration Program

In the cities which are called "smart", purer air, is safer than the street and the general quality of life is higher. At the same time many of those who are responsible for financial flows hardly find funds for financing of conversions which would make their cities "smart". Helping to cope with budget difficulties, Cisco offered the Program of acceleration of financing of city infrastructure[9] in November, 2017 dollars. The program purpose — to make more available to the cities in the different countries of the world financing and implementation of technologies which will promote conversions.

Financing will be performed by means of Cisco Capital company with the assistance of Digital Alpha Advisors investment fund and the APG Asset Management (APG) and Whitehelm Capital pension funds.

The program is designed to help the cities to group this or that packet of financial instruments for implementation of the innovative technologies with the minimum initial investments. What was the purpose of municipality — to lower energy consumption, to reduce transport traffic jams and to facilitate the parking, to increase fullness and profitability of public transport, the new program will help to find suitable solutions. So, financing on the basis of income distribution will allow the city to tie investment to desirable results and then to expand future operating budget for the income account from new services which will appear as a result of digitalization of infrastructure.

You look also Cisco Kinetic

In Cisco controllers logins and passwords are statically defined in control code

On July 7, 2017 Cisco Systems published bulletins of security in connection with identification and elimination of a number of critical errors in its cloud products. A part of errors - the investigation of a possibility of remote start of any code or increase in privileges in a system.

In the cloud Elastic Services Controller controller availability of the "static" preset data of authorization - the invariable, "sewed" in the code administrative logins and passwords is revealed. With their help malefactors can get far off access to the management console[10].

As these data the general for several different installations, the malefactor can "generate an administrator token of a session which will allow to get access to all active ESC web consoles".

In ESC the error allowing to increase privileges was found: the preset user with the nickname tomcat has access to some commands of a cover allowing rewriting of any files in a system and increases in privileges to the root level (superuser).

In the Ultra Services Framework (USF) automation system unsafe setup of service of configuring and synchronization of Apache ZooKeeper was detected. In the theory it can be used far off for gaining access to this or that device if the malefactor manages to snare an orkestrator.

The framework contains a bug in the auxiliary server: vulnerability in service AutoIT allows to start far off any commands of a cover with the superuser's powers.

Two more errors belong to USF. The first in the AutoVNF tool allows to get, in theories, administrative access to all of ESC. The problem is that administrator login and the password are stored in a log file in the open (not encoded) type and if the malefactor knows the address of this file, it can receive these authorizations.

The second error - in AutoVNF, and its method of generation of the symbolical link ("simlink"). In the presence of the working exploit the malefactor can read any file or start any code without authorization in a system.

For all errors updates are released. Considering their importance, patches should be set as fast as possible.

Reduction of 1100 jobs

On May 17, 2017 the Cisco corporation announced the next staff reduction after one and a half years of drop in sales.

According to the The Wall Street Journal (WSJ) newspaper with reference to the report of Cisco sent to the American Securities and Exchange Commission by November, 2017 the number of staff of the company will decrease by 1100 people. Expenses on payment of compensations and other measures connected with personnel restructuring are estimated at $150 million.

Cisco telephone set
Cisco telephone set

In August, 2016 Cisco announced dismissal of 5500 people that corresponded to 7% of the state. At that time in the company worked less, than in May, 2017 when new reductions of jobs were announced, the CEO of Cisco Chuck Robbins said to the edition. By January 28, 2017 the total quantity of staff of Cisco made  71,959 people.

According to observers of the edition Financial Times, Cisco dismisses people for the purpose of economy and increase in a profit margin which the company tries to increase due to work in the markets of services and the software, new to itself. The vendor shows revenue growth in the field of information security, but faces the flat demand on key products — network equipment, WSJ adds.

For the purpose of development of the fast-growing Cisco directions actively buys up the companies specializing in cloud computing, analytics and artificial intelligence. In May, 2017 the corporation announced three purchases.

Cisco announced dismissals together with the publication of financial statements from which it became known that revenue of the company decreases six quarters in succession. On this background the share value of the American producer of routers and switches decreased by 7.7% during additional biddings after closing of the exchange on May 17, 2017.[11]

Reaction to leak of classified documents of CIA

At the end of March, 2017 mass media reported reaction of Cisco to leak of classified documents of CIA from which it became known of use of tools by the American intelligence agencies for cracking of the IT equipment and the software.

In the materials published on the WikiLeaks website it was reported that CIA managed to learn about vulnerabilities in Cisco switches which theoretically allowed to keep shadowing users of this equipment.

Logo of Cisco company at the Mobile World Congress 2017 exhibition in Barslona
Logo of Cisco company at the Mobile World Congress 2017 exhibition in Barslona

According to Reuters news agency with reference to the unnamed staff of Cisco, after emergence of this leak company executives instantly involved specialists from different projects to find out how methods of cracking of CIA work, to help clients of Cisco to correct the systems and not to allow use by criminals of the same cyberacceptances.

Round the clock within several days the Cisco programmers analyzed hacker means of CIA, corrected vulnerabilities and prepared for clients of the company of the notification on possible risks at operation of the equipment. It is noted, under the threat of cracking there were more than 300 models of the products Cisco.

The representative of CIA Is cunning Fritz Hornyak (Heather Fritz Horniak) not began to comment on a case with Cisco at the request of Reuters and only noted, that management pursued "the aim to be the innovation, advanced and to be on a front line in protection of the country against foreign enemies".

Cisco reported that CIA did not inform the company on information leak about instruments of possible cracking of the equipment of the company.

Cisco still takes a firm position that they [in CIA — a comment of TAdviser] should announce all found vulnerabilities as so we can correct them and warn the clients — the representative of the company Yvonne Malmgren said.[12]

Identification of defects in devices of the company

On February 20, 2017 the Cisco company announced identification of defective control circuits clock signals in a number of self-produced network devices. Clock generators in devices of the company can fail in 18 months after the beginning of operation.

The company announced identification of cases of degradation of a component of the clock generator (Clock Signal Component), happening to time. While these components made by Cisco work regularly, however over the years the risk of their failure increases.

The beginning of problems with a component at Cisco is estimated in time by about 18 months since the beginning of operation of the equipment. After the component fails, the device will cease to be loaded – replacement of the motherboard will be required. The budgeted $125 million for a covering of expenses for potential compensation called millions in the company client support.

According to data of experts, the problem with generators mentioned products:

  • NCS5500 Line Cards
  • IR809/IR829
  • ISR4331, ISR4321, ISR4351
  • UCS-E120
  • ASA 5506, 5506W, 5506H, 5508, and 5516
  • Cisco ISA3000
  • N9K-C9504-FM-E/N9K-C9508-FM-E/N9K-X9732C-EX
  • MX 84
  • MS350 Series

Planning a damage covering from defective control circuits in network communicators and routers, Cisco reserved $125 million.

Despite reduction of net profit, the total quarter sales of the company reached $11.580 billion instead of the predicted $11.557 billion. Experts noted "moderate optimism" of Cisco – the company is going to compensate damage from reduction of core business in the field of network equipment by development of cloud services. But the failing control circuits with clock signals in devices can strike an additional financial hit of the company. The list of devices was published on the website Cisco.


Income of top managers

In October, 2016 Cisco opened the income of the top managers. The salary of the new head of the American company was higher, than at his predecessor.

According to Reuters news agency with reference to the documents provided to Cisco of the U.S. Securities and Exchange Commission (U.S. Securities and Exchange Commission, SEC), according to the results of 2016 financial year the compensation packet of the CEO of the company Chuck Robbins made $16 million. In this amount salary entered $1.2 million. The most part of remunerations of the CEO are bonuses in the form of actions most of which have limited circulation and are tied to financial results of Cisco.

The new head of Cisco unexpectedly earns more predecessor
The new head of Cisco unexpectedly earns more predecessor

John Chambers heading the company till July, 2015, and by the end of October of the 2016th holding a post of the executive chairman of the board of directors, earned $9.9 million whereas in 2015 financial year the employer paid it $19.6 million from this position. The annual salary of Chambers made $1.02 million.

Nor Makkord (Nora McCord), the managing director of consulting company Steven Hall & Partners, says that it is seldom possible to meet the American company in which the new head began to earn at least as much, how many and his predecessor, especially so far as concerns appointment to the highest position of the employee of the same company. As a rule, at first pay the new CEO only 15% of the amount which was received by the previous head, and increase in income to identical level happens not earlier, than in two-three years after appointment, Makkord notes.

The chief financial officer of Cisco Kelly Kramer earned financial year total rewards for 2016 in the amount of $9.1 million that is 7% more, than the previous year. The salary of the top manager was measured by $749 thousand[13]

Cisco recognized existence of a hole from intelligence agencies of the USA in the devices

On September 21, 2016 experts from the Shadowserver Foundation group which is keeping track of activity hacker a bot networks counted the number of the network devices Cisco containing vulnerability which the American law enforcement agencies for cyber espionage in national interests could use.

It is about vulnerability of CVE-2016-6415 which as reported in Cisco, remains in the software of IOS (4.3.x, 5.0.x, 5.1.x and 5.2.x; version 5.3.0 above out of danger), IOS XE (all versions) and IOS XR (all versions) for network equipment. This vulnerability was operated by the hacker Equation Group grouping whose activity is connected directly with the National Security Agency (NSA) of the USA.

According to Shadowserver Foundation, by September 21, 2016 more than 840 thousand devices of the American producer are vulnerable
According to Shadowserver Foundation, by September 21, 2016 more than 840 thousand devices of the American producer are vulnerable

Existence of CVE-2016-6415 in routers, switches and Cisco firewalls allows malefactors to get far off a memory access where confidential information can be stored. According to Shadowserver Foundation, by September 21, 2016 more than 840 thousand devices of the American producer are vulnerable.

Most of all unsafe equipment (more than 255 thousand) it is revealed in the USA. Russia on this indicator was at the second place (42,281), Great Britain — at the third (42,138).

Further  Canada (41,115), Germany (35,132) , Japan (33,092) ,  Mexico (26,970),  France (26,818), Australia (22,827) , China (22,767)  and Italy follow  (21,308). In Ukraine  8,514 Cisco devices containing vulnerability of CVE-2016-6415 are noticed.

Specialists of Shadowserver Foundation note that there are no proofs that products of other producers are subject to the same vulnerability, however the risk nevertheless remains.

By September 21, 2016 bug fix of CVE-2016-6415 is not released. Also in Cisco report that time methods of protection against a problem do not exist, and promised to release a patch as soon as possible.

Hacker attacks on Cisco equipment by means of tools of the NSA

In September, 2016 Cisco announced that unknown hackers attacked clients of the company, having used tools for cracking with which the American authorities for conducting cyber espionage worked.

In the summer of 2016 hackers from The Shadow Brokers laid out in free access tools from an arsenal of the Equation Group cybercommand which is suspected of collaboration with the National Security Agency (NSA) of the USA. Applications are intended for operation of vulnerabilities in different IT products, including production Cisco.

Hackers attack clients of Cisco by means of tools of the NSA
Hackers attack clients of Cisco by means of tools of the NSA

On September 16, 2016 Cisco stated that it knows about vulnerability in the software of the firewalls, switches and routers. Also the producer knows of hacker attacks on users of this equipment as a result of which malefactors get data access, stored in memory, and confidential information.

The producer did not specify what clients could suffer from actions of cybercriminals. Cisco is going to release shortly the updates eliminating a gap in a security system of the products.

In August, 2016 representatives of Cisco for the first time confirmed that kidnapped persons at the NSA the EXTRABACON, EPICBANANA and JETPLOW tools are really directed to vulnerabilities in products of the company. It was reported that the model range of ASA, firewalls of PIX and Cisco Firewall Services Modules is vulnerable.

Then it became clear that hacker tools, access to which was got in The Shadow Brokers, are aimed at the old bug of CVE-2016-6367 fixed in 2011 and also at vulnerability of "zero day" of CVE-2016-6366 which was detected just thanks to this scandalous leak.[14]

Cisco will dismiss 14 thousand employees (20% of the state)

The largest producer of network equipment Cisco Systems Inc. it intends to reduce 14 thousand jobs, Interfax reports. Reductions will happen within the next several weeks.

To reduce dependence on equipment manufacturing, demand for which falls, the Cisco company actively changes a vector of development and makes investments in software for data analysis and cloud computing. The future reductions are connected with the fact that employees have no skills necessary for this purpose.

As of April 30, 2016, in Cisco more than 70 thousand employees worked worldwide. The last large reduction in the company took place in 2014: then the management dismissed 6 thousand positions.


Competition to VMware

On February 12, 2015 during the conference devoted to the publication of the quarterly statement Cisco, the chairman of the board and the CEO of the company John Chambers commented on a situation with the competition in the world market of network equipment.[15]

According to Chambers, Cisco does not see threat from VMware, though considers this company by the competitor.

"We recognize them by competitors, but from this position we will be ahead of them and we will make it with pleasure", – the head of Cisco noted.

In assortment of VMware the platform of network virtualization for software-defined data processing centers of NSX is submitted. This solution is an alternative to traditional networks which still remain the main market for Cisco in spite of the fact that the American company actively masters the market of software-defined networks (SDN) by means of architecture under the name Application Centric Infrastructure (ACI).

The head of Cisco considers VMware by the competitor

By the end of the second quarter of 2015 financial year which came to the end on January 24 the 2015th the number of clients of the Cisco ACI platform (her direct competitor is VMware NSX) grew up till 1700 against 970 three months before. At the same time sales of the new Cisco switches Nexus 3000 and 9000 which are a crucial element of software-defined network infrastructure of vendor jumped by 350%.

VMware is a part of EMC to which Cisco connect the old relations in the form of VCE joint venture (Virtual Computing Environment) occupied with development of convergent infrastructure. John Chambers said that the relations with EMC remain strong though Cisco also cooperates with several competitors of EMC, such as NetApp and IBM.

During the presentation at the conference the head of Cisco concerned producers of not branded (white-box) of network equipment. The company does not see in them competitors neither now, nor in the future as considers that such vendors propose unsafe solutions of limited functionality.

"Clients will probably be ready to pay in 3-5 times more for ready business, than to buy the separate switch or the router" — the head of Cisco said.

Chuck Robbins is the new CEO of Cisco

On May 4, 2015 it became known of John Chambers leaving from the CEO's post after 20 years of the management of the company. It will be replaced by one of veterans of the American producer.

According to the statement of Cisco, since July 26, 2015, John Chambers will cease to execute duties of the head of the company and will give them to Chuck Robbins, the vice president for the international transactions Cisco. At this position Robbins was responsible for sales and the relations with corporate partners. Robbins works in Cisco since 1997.

Chuck Robbins will start responsibilities as the CEO of Cisco on July 26, 2015

Chuck Robbins will start responsibilities as the CEO of Cisco on July 26, 2015

Having resigned the CEO's authority, John Chambers will become the executive chairman of the board of directors and will help the new CEO to adapt to the management of corporation whose market capitalization for May 4, 2015 makes about $149 billion.

Media began to write that Chambers is going to stop the management of Cisco several years prior to the official declaration of resignation. Then the most probable successors were called the operating officer Gary Moore and the president on development and sales Robert Lloyd. According to analysts, Robbins's appointment became surprise. The former head of Yahoo! Carol Bartz who is a part of Board of Directors of Cisco called Robbins "not the best leader of Cisco at the moment".

According to the The Wall Street Journal newspaper, at first the Board of Directors took a confidential straw vote according to the results of which Chuck Robbins won first place among candidates for a position of the company executive. On May 1, 2015 official vote where board members confirmed the choice took place.[16]

According to the edition, Chuck Robbins and Robert Lloyd were the strongest candidates for a role of the successor of John Chambers. Both well proved as sales specialists, but for benefit of Robbins higher popularity among employees and good work regarding management of activity of the company played him. Cisco said that Robbins helped the company to make a number of strategically important decisions, one of which concerned diversification of business of Cisco in the market of products of information security.

Resignation of presidents of Cisco

On June 1, 2015 Cisco announced resignation of two presidents which many years fulfilled in a camp of the producer of network equipment. Departure of top managers is dated for change of the CEO of the American corporation.

On July 25, 2015 Cisco will be left by the president and chief operating officer Gary Moore and the president on development and sales Robert Lloyd. About their resignation in the blog Chuck Robbins who in May, 2015 was appointed the CEO of Cisco instead of John Chambers directing the company more than 20 years wrote. Robbins will begin to fulfill duties of the head of Cisco at the end of July, 2015.

On July 25, 2015 Cisco will be left by the operating officer Gary Moore and the president on development and sales Robert Lloyd (on the right)

On July 25, 2015 Cisco will be left by the operating officer Gary Moore and the president on development and sales Robert Lloyd (on the right)

According to the newly made CEO, the company which is criticized for a large number of vice presidents and more high-ranking employees needs equalizing of leadership team for the purpose of acceleration of rates of work, development of innovations and increase in management efficiency.

According to The Wall Street Journal, one more reason for which of Cisco veterans of the company leave is process of rejuvenation of a team of top managers. By May, 2015 John Chambers and Gary Moore's age is for 65 years. To Rob Lloyd — 58 years, to Chuck Robbins — 48 years.[17]

Lloyd and Moore's resignation can be not last in a team of heads of Cisco. To the middle of June, 2015 Chuck Robbins is going to provide new changes in an organization structure and leadership team of the company.[18]

According to a tekhnoportal of Re/Code after Chuck Robbins officially becomes the head of Cisco, the company will be left by the executive director on technologies and the strategist of Padmashri Uorrior company (Padmasree Warrior) who joined vendor in 2008. Mass media reported possible dismissal Uorrior in January, 2015, but then in Cisco denied this information.[19]

In Ukraine and in other countries the Cisco routers with "bugs" are detected

Information security specialists from Mandiant company detected 14 enterprises of the Cisco routers integrated into network infrastructures in Ukraine, Philippines, Mexico and India infected in Mandiant terminology with "implant" under the name SYNful Knock. For what purposes they are used by malefactors,[20] is not specified[21].

SYNful Knock is the substitution operating system of the router remotely set by hackers instead of regular OS of Cisco IOS producer.

After installation of an implant the router continues to work and perform the functions, as before. But at the same time it also — as from now on is under external control — executes remote commands of malefactors and provides them full access to network data.

"Usually malefactors attack network devices of the enterprises to put infrastructure out of action by DDoS attack (the distributed attacks like "failure in service"). This purpose still meets most often. However we see growth of number of cases when hackers aim to crack infrastructure, but not just to attack it for a while" — commented in Cisco.

Specialists of Mandiant notified Cisco company on existence of the infected routers. According to representatives of Cisco, replacement of a firmware was executed without use of any vulnerabilities, and by login with indication of the existing logins and passwords or at physical contact with the router.

According to researchers from Mandiant, SYNful Knock is only an iceberg top. Experts claim that the similar infected routers in the world it is much bigger. In this case news concerns routers of the specific producer.

In May, 2015 the Incapsula company published the report in which over 40 thousand infected home and office routers which were links of a large botnet ("zombie network") used for carrying out DDoS attacks were told about existence.

More than 80% of all infected IP addresses were in Thailand (64%) and Brazil (21%). In addition to Thailand and Brazil, India (3%) and Serbia (1%) are in the lead by the number of the infected routers of the USA (4%). In the general complexity the botnet from the infected routers covered 109 states.

Cisco and Inspur created the joint venture

On September 24, 2015 Cisco announced the beginning of cooperation with one of the producers of the Inspur servers, largest in China. Thanks to this partner the American company intends to strengthen the positions in the Chinese market, where not easy to work to many IT manufacturing from the USA.

Within the agreement signed during the business visit of the Chinese President Xi Jinping to the United States, Cisco and Inspur create the joint venture (JV) in which the share of the Chinese vendor will make 51%.

Cisco announced the beginning of cooperation with one of the producers of the Inspur servers, largest in China
Cisco announced the beginning of cooperation with one of the producers of the Inspur servers, largest in China

Joint efforts of the company will develop a broad spectrum program and the hardware for data centers, the "smart" cities, cloud solutions and the solutions Big Data. Besides, the agreement assumes distribution of Inspur of network equipment and cloud products of production Cisco in the territory of the People's Republic of China.

Originally will invest $100 million in creation of JV Cisco and Inspur. This amount is a part of investments into $10 billion selected by Cisco for development of the Chinese business.

In June, 2015 Cisco signed the memorandum of understanding with the State committee on development and reforms of China for creation of innovations and Association of the universities of applied sciences for promotion of educational programs. Celestial Empire brings Cisco about 3% of total revenue, the CEO of the company Chuck Robbins said, commenting on partnership with Inspur.

According to the top manager, joint work with Inspur will accelerate growth of business of Cisco in the second in value economy in the world.

It became heavier to Cisco and other American companies to work in China after Edward Snowden told the former employee of the American intelligence agencies about illegal shadowing which is kept by the U.S. National Security Agency on the Internet. After that Beijing and Washington brought a number of mutual recriminations in espionage. Problems of Cisco were added by the program of support of the domestic IT industry started in China.

For the purpose of strengthening of relationship between the American and Chinese IT companies the leader of the People's Republic of China Xi Jinping arrived on September 23, 2015 in Seattle (the State of Washington, the USA) where met heads of such giants as Apple, Microsoft and Facebook.[22]

Income of top managers

At the beginning of October, 2015 it became known of earnings of top managers of Cisco. According to promulgated data, for the first year of presence of Chuck Robbins on a post of the CEO of the company to it it is going to pay to $16.7 million.

According to Business Insider with reference to the documents sent to Cisco to the U.S. Securities and Exchange Commission (U.S. Securities and Exchange Commission, SEC), in 2016 financial year which began on July 26 the 2015th to Chuck Robbins wrote out a basic salary in $1.15 million and a grant on obtaining stocks in the amount of $13 million tied to financial performance of the American producer. Besides, the CEO is necessary a target bonus in the amount of 225% of salary, i.e. nearly $2.6 million.

For the first year Chuck Robbins will get a job on Cisco post to $16.7 million
For the first year Chuck Robbins will get a job on Cisco post to $16.7 million

Thus, for the first year at a position of the head of Cisco Chuck Robbins can get a job $16.7 million that less starting earnings of the CEO of Microsoft Satya Nadella whose compensation packet in 2014 made $90 million are notable, notes the edition.

John Chambers who in July, 2015 delegated to Chuck Robbins powers of the head of Cisco earned over $19.6 million for 2015 financial year. In this the amounts entered salary $1.1 million, premiums $4 million and remuneration to stocks in the amount of $14.5 million. In 2016 a fiscal year to Chambers needs a basic salary in $1 million and grants upon obtaining stocks for the amount to $7 million. Bonuses will not be paid to it as it left the managerial structure of Cisco and headed Board of Directors.

In the report of Cisco for SEC compensation packets of the chief financial officer of Cisco Kelly Kramer are specified (Kelly Kramer; in 2015 to a fiscal year earned $8.4 million), the development director Pankaj Patel (Pankaj Patel; $13 million), former financial director of Cisco Frank Kalderoni (Frank Calderoni; $27.2 million), former operating officer Gary Moore (Gary Moore; $26.8 million) and former sales director and to design of products of Robert Lloyd (Robert Lloyd; $26.5 million). The last three top managers left Cisco in the summer of 2015.[23]

Cooperation with Ericsson

On November 9, 2015 Ericsson and Cisco announced the beginning of the strategic cooperation directed to creation of networks of new generation. Each of the companies expects to earn from this union for $1 billion within three years.

Partnership of Ericsson and Cisco assumes covers the markets of Internet of Things, IP networks and networks of fifth generation. The companies integrate the opportunities in the field of routing, network, mobile and cloud computing, data centers, management and control of network infrastructure and also global network services.

Search of vulnerabilities after the incident with Juniper

On December 21, 2015 Cisco announced the beginning of careful check of a program code of the products regarding existence of vulnerabilities. Thus, the American corporation reacted to the resonant incident connected with detection of a tab in firewalls of the competing Juniper Networks.

As reported in the blog Cisco, the company books audit of the products with involvement of the software engineers having profound knowledge in the field of network technologies and cryptography. Within the research it is going to start the penetration test representing attempt of cracking of IT solutions for the purpose of receiving objective assessment of level of their information security, detection of vulnerabilities and weak points.

Cisco began to look for \"holes\" in the products after detection of a tab in Juniper firewall
Cisco began to look for "holes" in the products after detection of a tab in Juniper firewall
"Though search of not authorized software is for us customary practice, we recognize that it is completely impossible to exclude all risks" — said in Cisco.[24]

The senior director of the Security and Trust organization of Anthony Grieco entering into Cisco assures that before no foreign code was found in products of the company. The representative of vendor also noted that new check was initiated by Cisco, but not representatives of law and order.

In the middle of December, 2015 Juniper announced detection  of the code of unknown origin in the code of the ScreenOS operating system. It is known that the foreign component disappeared in NetScreen firewall since 2012.

Who placed it there, it is unknown, the intelligence agencies of the USA assuming that the malicious code could influence work of the large companies and governmental bodies were engaged in clarification of details.

According to Anthony Griko, the politician of product development of Cisco completely excludes emergence of tabs, and there are no bases to believe that solutions of the company can contain the problems similar to found in ScreenOS.

According to information security experts, the incident connected with Juniper will induce to begin many IT companies the deep analysis of a program code of the products, similar to what now carries out by Cisco, Reuters Cisco reviews code after Juniper breach reports[25].


Reorganization will affect 6000 people

Cisco Systems opened in the summer of 2014 plans of one more reorganization during which 6 thousand people, or about 8% of personnel around the world will be reduced. Performing reorganization, the company intends to take a sight on "key areas of growth" — a cloud, software and IT security[26].

These dismissals about which it was told at the declaration of profit for the 4th quarter will begin in 1 financial quarter. What divisions will be affected while it is unknown.

"If we are going to become IT player No. 1, and we intend to become him, then our capability requires to move determination and requires investment into these [areas] of growth" — the general manager of Cisco John Chambers said during the press conference with analysts.

The last several quarters were not the most successful for Cisco financially. In December the company lowered the long-term forecast of growth of income for the next three-five years to 3-6%. (Earlier growth by 5-7% was expected.)

Trunk business of network equipment of Cisco faces pressure of the beginning transition to programmable network infrastructure (SDN) — technology which transfers high-level functions of switches and routers to the software level which can be executed on the inexpensive, standard equipment. Income from switches and the backbone routers Cisco in the 4th quarter (came to the end on July 26) decreased by 4% and 7% respectively.

Cisco invests $1.7 billion in India

On November 17, 2014 the The Economic Times edition published excerpts from an interview with the president of the Indian representative office of Cisco Dinesh Malkani. That told about plans of the company to invest about $1.7 billion in own business in the territory of the country.[27]

From the stated amount about $40 million will go for development of innovations and research activity. The most part of money is intended for participation in tenders for public contracts within the initiative Digital India assuming general Internetization of the population, expansion of local market of smartphones and implementation of "smart" solutions in city infrastructure.

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The Indian business of Cisco will receive $1.7 billion from the head company, about $40 million will go on R&D-работу

By 2017 for connection of the Indian villages to the World Wide Web it is going to spend more than $5 billion that will allow to increase by 2019 the volume of the local market of Internet of Things to $15 billion.

The CEO and the chairman of the board of directors of Cisco John Chambers lays great hopes on the Indian market and considers correct strategy which was selected by the prime minister of the country Narendra Modi.

By Chambers's estimates, the contribution of India to total sales of the company will increase from 2% to 5%. Following this purpose, Cisco started in the country new division under the name Growth Vertical which will help the authorities with construction of the "smart" cities, project implementation of the electronic government and expansion of a scope of broadband networks.

As of November, 2014 the staff of Cisco in India totals 11,300 people, about 15-20% of employees are transferred in newly made structure of Growth Vertical. Cisco already got access to a number of large state projects and invested more than $100 million in local startups.

In particular, money received the developer of software for Covacsis production organization and the MobStacs startup firm which is engaged in development of network software for "smart" campuses. The software of these companies is already integrated with Cisco products, Dinesh Malkani reported.

According to him, until the end of 2014 Cisco will start the first product which is completely designed and manufactured in India. The top manager did not specify about what solution he there is a speech, but noted that it will add the main product line of the producer.

Since the beginning of 2014 the profit of Cisco steadily decreases what the flat demand on products of the company in emerging markets is in many respects guilty of. For example, in a quarter closed on July 26, 2014 revenue of vendor in China dropped by 26%, quarter before — for 33%. In India Cisco sales, on the contrary, grew — by 18% and 6% respectively.


Reduction of 4 thousand managers

The Cisco Systems company announced in the summer of 2013 reduction about 4 thousand employees. In the company there were too many middle managers, the CEO of Cisco John Chambers whereas only the small working groups can provide fast reaction to changes of a situation in the industry emphasized.

The expenses connected with staff reduction will make about 550 million dollars. From 250 to 300 million will be charged to the first quarter of 2014 financial year which at Cisco began since July 28. For the last quarter the sales volume of the company increased by 6% in comparison with last year to 12.4 billion dollars, and net profit grew by 18% to 2.3 billion dollars.

Cisco not for the first time rebuilds a management structure. A few years ago in the company so-called "councils" for coordination of actions of different divisions were created. Afterwards the most part from them was liquidated that too was explained by need of acceleration of decision making process.[28]


Competition to Huawei

The competition in the market of telecommunications considerably became tougher. His permanent leader of Cisco Systems for the present maintains the increasing pressure from Arista Networks, Avaya, Juniper Networks, HP. However most of all John Chambers, the chief executive of Cisco is disturbed, most likely, by Huawei. In the interview of Wall Street Journal (WSJ) made at the beginning of April, 2012 it called the Chinese giant the competitor causing concerns at a long distance which not always plays by rules. Let's remind, in 2011 Huawei unrolled vigorous activity in the territory of the USA and now applies for a part of a share of Cisco not only in telecommunication, but also corporate IT market.

Chambers did not consider necessary to go into detail and to explain what rules are violated by Huawei, having specified only that it is about the intellectual property rights. The head of Cisco did not draw parallels between the separate taken company and China as such. According to him, Celestial Empire will protect intellectual property, proceeding from national interests, and "this day will come soon".

Official reaction of Huawei to expressions of Cisco followed without delay. William Plummer, the vice president for external relations, called comments of Cisco "inappropriate". Huawei locates 50 thousand own patents and therefore was always respectful to protection of the intellectual property rights, as well as asserted own rights. By analogy with Cisco it managed to get trust of customers to the products in more than 140 markets of the world. Plummer added that among customers there are his companies 500 telecom operators.

While Cisco makes attempts of penetration on the Chinese market, Huawei it is necessary to go on a thorny road for the markets of the Western countries. Considering that many experts consider the company closely connected with the Chinese armed forces and the government, it is not always simple.

New Board of Directors

In August, 2012 with arrival to Board of Directors of Cisco of the founder of Marc Benioff its structure extended up to 14 people. Also enter it:

  • head of Enduring Hydro, LLC and former Deputy Minister of Energy of the USA doctor Christina M. Johnson;
  • former CEO of Yahoo! Inc. Carol Bartz;
  • former chairman of the board of directors and CEO of Mercer LLC Michel Barnes;
  • former CEO of VCE Company, LLC Michael D. Kapellas;
  • former senior vice president, chairman of the board of directors and chief executive officer of Cisco Systems, Inc. Larry Carter;
  • board member and CEO of Cisco Systems, Inc. John Chambers;
  • former board member and CEO of National Semiconductor Corporation Bayan Halla;
  • president of the Stendforsky University professor John L. Hennessi;
  • former chairman and chief executive officer of Wells Fargo & Company Richard Kovasevich;
  • board member of Tegile Systems, Inc. Roderick S. Makgrey;
  • senior adviser, Kohlberg Kravis Roberts & Co and
  • former chief executive of Vodafone Group Plc Arun Sarin;
  • founder and partner of Emerging Company Partners LLC Stephen Vest;
  • co-founder and former head of Yahoo! Inc. Jerry Yang.

On September 21, 2012 Jerry Yang left a post of the board member of the company. The numerical structure of Board of Directors was reduced to 13 people. According to the statement of the company, to the place of Jerry Yang it is not going to attract anybody.

The head of Cisco looks after to himself replacement

The CEO of Cisco John Chambers can retire in 2-4 years and now the candidate list on its post is formed, reported on September 26 Bloomberg.

In total at the moment in a short list of 10 surnames which are quarterly reviewed, including: Gary Moore is a chief operating officer; Robert Lloyd is the executive vice president for transactions worldwide, Chuck Robbins is the senior vice president of America and Idzard Overbik - the senior vice president for global services.

According to John Chambers, in case of contingencies company management will be undertaken by Gary Moore.

At the same time, John Chambers does not exclude that finally will not leave the company. "If shareholders make the decision to nominate me to a post of the chairman of the board of directors, then I will accept it and I will remain", - he told.

The head of Cisco noted that the following CEO will be "the person", i.e. - the receiver from Cisco.

John Chambers is 63 years old. He heads Cisco since 1995.


Crisis and reduction of staff

In July, 2011 Cisco Systems announced reduction of 6.5 thousand jobs that it makes about 9% of the total number of the state (about 73.4 thousand people worldwide). According to the statement of Cisco made in May of the current year, mass layoffs are a part of a global initiative of the company of decrease in annual expenses for $1 billion, or for 6%, transfers On July 18, Cisco expressed the intention to dismiss 4.4 thousand employees. 2.1 thousand more workers preferred to leave according to the early retirement plan. According to data of the company, reductions in general affected 15% of specialists of Cisco of level of the vice president above. Notify the employees who got laid off (in the USA, Canada and other countries), about dismissal in the company plan at the beginning of August. By Cisco estimates, for the weekend benefits to the dismissed employees who it is going to pay within several quarters in the company will spend $1.3 billion. At the same time, including $500 million for the early retirement plan, Cisco will pay $750 million only current quarter.

Besides, Cisco also announced intention to sell the plant on production of prefixes for the digital television located in Mexico, Taiwanese company of Foxconn Technology Group. Under the terms of the transaction, all staff of the plant — 5 thousand people — will pass to work into Foxconn Technology in the first quarter 2012 financial year.

Charges of encouragement of the mode of the Communist Party of China

In August, 2011 the Chinese political prisoners of Du Daobin, sentenced to 3 years, Zhou Yuanzhi - 10 years, - Liu Xianbin imprisoned under house arrest and 10 more people whose names are not told gave to district court in Maryland, the USA, having accused Cisco Systems of encouragement of the mode of the Communist Party of China[29].

Daniel Ward from the American lawyer bureau Ward & Ward which agreed to plead at the bar on behalf of applicants considers that actions of Cisco correspond to behavior of "IBM in Nazi Germany". It is possible to remember that German "subsidiary" of IBM, the Dehomag company, in the 1930th supplied the equipment for processing of results of a racial census in Germany. Following the results the Jews, Roma and the half-blooded who are liable to destruction were registered.

Cisco disproved charges, having called them empty. The company said that they only deliver solutions and do not bear responsibility for how they are used. The general counsel of Cisco Mark Chandler explained in the corporate blog that the company supports freedom of speech and the open Internet.

Meanwhile the company could not answer the questions connected with one of its internal presentations. In it it is said that Cisco was one of project participants of Golden Shield ("A gold board") also famous as Great Firewall of China ("Great Chinese fayervol"). This mechanism allows to close to the Chinese users of a global network access to the materials not pleasing to ruling party.

In the presentation dated 2002 there is a speech about how Cisco technologies will be helped "be supported stability" in the state, "stop the crimes connected with the Internet", suppress the spiritual movement of Falun Gong and different improper communities of the Chinese Communist Party. The special section of the presentation is devoted to technologies of shadowing dissidents.

Case, however, is not limited just to sale of network equipment for the corrupted mode. According to Ward, in addition, Cisco released the special software and participated in training of the Chinese officials as using its technologies to monitor people and to put pressure upon them. At the same time in Cisco knew how tough methods the Chinese authorities use for suppression of dissidents, and it, on a lawyer's opinion, is not subject to forgiveness.

Let's note that it not the first judicial listening of this sort. In 2005 human rights organizations condemned activity of other American company - Yahoo, - which disclosed information on Internet users at the request of the Chinese government. This information was used as arguments to put some journalists in prison where them deprived of some food and beat. Two years after Yahoo settled this claim, having paid to families of victims compensation.

2010: Opening of Competence Center in Prague

In November, 2010 in Prague the Competence Center of Cisco using the latest technologies, including Cisco TelePresence, for sales promotion and support of partners of the company in 27 CIS countries, Central and Eastern Europe opened. Earlier opened such centers Cisco in Lisbon, Cairo, Rayleigh (the State of North Carolina, the USA) and Toronto. The specialists of Cisco working in Prague can participate in personal virtual meetings with customers and partners and to assist them in implementation of technology projects. The Prague center services about 350 partners and 2.500 customers: Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Georgia, Hungary, Kazakhstan, Kosovo, Lithuania, Latvia, Macedonia, Moldova, Poland, Romania, Slovakia, Slovenia, Serbia, Turkey, Tajikistan, Turkmenistan, Ukraine and Uzbekistan. The Competence Center facilitates creation of community of specialists, offers services of continuous training and helps to increase quality of work and labor productivity.

1984: Foundation of the company

The company was founded by married couple Leonard Bosack and Sandra Lerner in 1984.


The company is considered the largest supplier of hardware solutions in the world for information security support of the enterprises. Among them: firewalls, intrusion prevention systems (IPS – intrusion prevention system), products and services of security of E-mail, technology in the field of protection of web traffic and control of network access (Identity Service Engine), cloud services of ScanSafe and others.

Cisco of the first put forward the idea of "networks without borders" which corresponds to general strategy of the company providing protection of customers against any threats despite of that, from where, in what time and from what device access is provided.

  • Wi-Fi access points,
  • platforms of optical switching,
  • ATM switches,
  • cable modems,
  • DSL equipment,
  • universal gateways and gateways of remote access,
  • switches of storage area networks (SAN, Storage Area Network),
  • software of network management.

Affiliate program of Cisco Systems

Основная статья: Cisco Systems Partner Network



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