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Date: Sat, Dec 26, 2015 - Mon, Dec 28, 2015
Time: 12:00 AM - 12:00 AM
Venue: Hyatt Santa Clara

According to news reports, Cisco Systems (CSCO) is planning to cut up to 10,000 jobs or 14 percent its labor force to cut costs and boost its bottom line.

Though the news gave a temporary pop to the company's stock, it won't solve Cisco's problems, as I outlined piece, Cisco's fall from grace was caused by four factors: A momentum shift away from internet and networking companies in the aftermath of the high-tech bubble of the late 1990s; the transition of the Cisco from and emerging to a mature company; growing competition from Alcatel-Lucent (ALU), Hewlett-Packard (HPQ), Juniper Networks (JNPR), Huawei Technologies Co.; and inability to keep up with competition.

What will solve Cisco's problems is a new leadership; a shift in the company's culture, a commitment of company's insiders to buying the company's stock and a shift from engineeering to economics -- as discussed in another piece.

Here I want to add another factor that could potentially help Cisco regain its leadership in the networking industry: Leverage the core business to develop innovative products; and change the innovation model, from one that rely to strategic acquisitions to one that relies on internal capabilities.


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