Huawei has an accident, why is Cisco nervous? What kind of company is Cisco?

If you use a sentence to explain the strength of Cisco, it is: without Cisco, there is no modern Internet. In the mid-1980s, the US computer network began to emerge. Because the networks used by universities and companies used different protocols and different devices, the demand for multi-protocol routers suddenly came into being. At this time, a pair of teachers and couples at Stanford University in the United States, Leonard Possac and Santi Lerner designed a networked device called “multi-protocol router” that can integrate computer LANs that are incompatible with each other. Together, form a unified network. This “multi-protocol router” is considered to be the real arrival of the human Internet era.

In 1984, Leonard Possack and Santi Lerner founded Cisco to develop network communication equipment. Since its inception, Cisco has entered an industry that does not want to make money. At that time, with the rise of the Internet, the amount of data transmission in the world has increased dramatically, and the amount of voice calls has dropped, and more and more money has been spent. On data communication devices, Cisco is the leader in this field. Cisco has been successfully listed in 1990.

After the listing of many companies, employees of the company will choose to leave the company to start a business or retire. The Leonard Possack and Santi Lerner have also chosen this path. They left the company. Although the founder left the company, but under the revolutionary wave of the Internet in the 1990s, Cisco’s development speed is getting faster and faster, but Cisco really becomes a giant in the industry, and he is a Chambers.

When Chambers joined Cisco in 1991, Cisco’s sales revenue was only $70 million, and the market value was $600 million. But in 1999, five years after he took over Cisco’s sales, Cisco’s sales revenue reached 12.15 billion. The US dollar has a market value of more than 500 billion US dollars, making it the world’s highest market value company. Chambers is therefore called “Mr. Internet.”

Network information at that time doubled on average every four months, which required newer, faster network transmission equipment to support it. As a device supplier, you must constantly innovate and master the latest technology, but no one can guarantee that all technologies can be developed. Under the leadership of Chambers, Cisco on the one hand to strengthen R & D investment, the other is to rely on “buy.” Cisco’s approach is to buy a new company that is developing a new product and, as much as possible, to launch an outstanding new product in the next six to 12 months, and then quickly bring it to market through Cisco’s existing distribution channels.

This strategy is effective. Through research and development and acquisition, the technological advantage is the market advantage, and Cisco has quickly become the dominant player in the network equipment industry. At that time, Cisco’s business scope covered almost every part of the network construction. The market for network devices such as routers and switches that make up the Internet and data transmission is almost always controlled by Cisco. In this market of more than 200 billion US dollars, Cisco is almost the same as “one-of-a-kind”, the market value of the Cisco family is more than the sum of other traditional communications equipment companies.

Junipernetworks (Chinese name: Juniper Networks) was once considered a competitor of Cisco, but its turnover is only 7% of Cisco. In fact, Cisco is fully capable of easily killing junipernetworks, but it did not do so because With juniper, Cisco has saved a lot of trouble with antitrust laws.

Cisco once could not find an opponent with a telescope. Until 2002, Chambers encountered the first Huawei company to exhibit in the United States at the Atlanta Communications Product Show.