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Cisco CEO: Internet of Things is the second generation of the Internet

Following better than expected Q2 results, Cisco's CEO closes out the Goldman Sachs Technology and Internet Conference.
Written by Rachel King, Contributor

SAN FRANCISCO---From switching to the cloud to the Internet of Things, Cisco is determined to be the "number one IT company," according to the company's CEO John Chambers.

Closing out the Goldman Sachs Technology and Internet Conference on Thursday, Chambers suggested if you start with the potential of a $19 trillion profit contribution and the belief every company will be digitized, these things will tie together through fast innovation as well as security.

"It is the most fundamental change. You'd almost call it the second generation of the Internet," posited Chambers.

Honing in on the cloud, Chambers insisted Cisco will be involved in virtually every development in this arena -- be whether new tech turns out to be complementary or competitive to Cisco's offerings.

"We're back in vogue," Chambers quipped. "It's like the 1990s all over again."

Chambers pointed out that the Internet of Things was much more than "just a fringe topic" at the 2015 Consumer Electronics Show this year, but front and center.

Cisco's own exposure at CES was a bit muted this year, albeit the Internet of Things is a major focus point for the networking giant now.

Chambers appeared in Las Vegas alongside Charter Communications CEO Thomas Rutledge as the two brands announced a deal in which Cisco will supply the technology for Charter's upcoming next-generation video platform.

Cisco also used the annual trade show to reveal a partnership with Vodafone-owned Kabel Deutschland (KD), Germany's largest cable operator, to serve as the foundation for KD's on-demand video service. Under the deal, KD's future video service will use Cisco-branded connected devices to establish a "video-hub for the home."

"Every person, your home, your car, the way you do healthcare, your sporting activities will become connected," said Chambers said in January. "It's disrupt or be disrupted."

Chambers is just one of the many high-profile CEOs from Silicon Valley taking the stage at the annual financial industry summit this week.

On Tuesday, Apple CEO Tim Cook announced news about the iPhone maker's new $850 million solar farm coming to Monterey, Calif. while dropping a few hints about the Apple Watch scheduled to ship this April. Cook promised one of the biggest surprises to Apple Watch will be "the breadth of what it can do."

On Wednesday, Yahoo CEO Marissa Mayer boasted her company has "some of the best data in the industry" generated on its own platform as well as across its network, meaning Yahoo could better help advertisers target particular users.

Chambers's appearance also follows up Cisco's better-than-expected second quarter earnings report, which dropped on Wednesday.

The networking giant reported net income of $2.4 billion, or 46 cents per share (statement). Non-GAAP earnings were 53 cents per share on a revenue of $11.9 billion, up 7 percent year-over-year.

Wall Street was expecting earnings of 51 cents on revenue of $11.8 billion.

In prepared remarks, Chambers touted the quarter's success "is the direct result of how well we have managed our company transformation over the last three plus years and our leadership position in the key technology transitions of cloud, mobility, big data, security, collaboration, and the Internet of Everything."

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