• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
TechCisco Systems

Cisco’s latest earnings show the company isn’t threatened by competition…yet

By
Jonathan Vanian
Jonathan Vanian
Down Arrow Button Icon
By
Jonathan Vanian
Jonathan Vanian
Down Arrow Button Icon
May 13, 2015, 8:29 PM ET
Cisco CEO John Chambers at Fortune Brainstorm Tech 2014
Cisco CEO John Chambers at Fortune Brainstorm Tech 2014 in Aspen, Colo.Photograph by Stuart Isett — Fortune Brainstorm TECH

Cisco’s long-time CEO John Chambers didn’t mince words about his company’s critics during his last earnings call Wednesday before retiring.

The networking titan reported $12.1 billion in third quarter revenue compared to $11.5 billion in the same period last year. Chambers let it be known that this 5% gain should silence naysayers who doubt Cisco (CSCO) can remain relevant in an era of cloud computing and other disruptive technologies.

“All this garbage about new players coming in, and software coming in, and white label killing our approach was entirely wrong,” Chambers said.

The 65-year-old executive has a point.

The rise of a new type of technology called software-defined networking has caused industry analysts to question whether new challengers could threaten Cisco’s core business of selling networking equipment. A number of startups are selling the technology, essentially software that businesses can plug into cheap servers from Hewlett-Packard, Dell, and Taiwan-based Quanta instead of buying Cisco’s more expensive pre-loaded equipment.

However, the hype surrounding the upstart technology has yet to seize significant market share from Cisco, which generated $3 billion in cash flow in the quarter.

“We are beating our competitors that you all were worried about,” Chambers said triumphantly.

Chambers explained that rivals that sell “low-cost building blocks” lack Cisco’s expertise in providing customer support for its complete package of switches and routers. If one of these lower-cost machines dies, the owner will likely have no idea who to call for help, he explained.

Still, for a man who claims that Cisco is not threatened by the emerging technology, he sure did mention it a lot during the call. Often with indifference.

And there are subtle signs that Cisco’s legacy switching business is feeling some pressure from potential competition. When an analyst asked Chambers why the company’s switching business grew only 6% in the quarter and suggested that Cisco’s numbers only look good because last year’s numbers were so bad, Chambers grew defensive.

“I will never apologize for growth in single digits for switching,” Chambers said defiantly.

Even if new technology may be gaining traction, Chambers believes Cisco has what it takes to withstand the challenge. He explained that it used to take 3,000 people and five years to develop the company’s high-end products. But now, he said the company is trying to be as nimble as a startup. As evidence, Chambers pointed to a new router under development that he said will require only 225 people to build over 12 months.

“We can now rival the best startups there are in the world and out execute them,” Chambers said.

Those are fighting words, and Chambers seems determined to battle with possible rivals. Whether incoming CEO Chuck Robbins will be as feisty as and confident as his predecessor remains to be seen.

For more about Cisco, watch this Fortune video:

About the Author
By Jonathan Vanian
LinkedIn iconTwitter icon

Jonathan Vanian is a former Fortune reporter. He covered business technology, cybersecurity, artificial intelligence, data privacy, and other topics.

See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Current price of Ethereum for June 10, 2026
Personal FinanceEthereum
Current price of Ethereum for June 10, 2026
By Joseph HostetlerJune 10, 2026
2 hours ago
goldman
Investingprivate equity
‘The circulatory system isn’t working.’ Goldman on what’s really wrong with private markets
By Nick LichtenbergJune 10, 2026
3 hours ago
Exclusive: Mastercard launches protocol to let AI agents pay each other, send micropayments
BankingMastercard
Exclusive: Mastercard launches protocol to let AI agents pay each other, send micropayments
By Ben WeissJune 10, 2026
3 hours ago
Geoffrey von Maltzahn and Kimberly Powell on stage at Fortune Brainstorm Tech
AITerm Sheet
AI drug discovery leaders warn U.S. health funding cuts risk falling behind global rivals
By Lily Mae LazarusJune 10, 2026
4 hours ago
Kevin O'Leary wears a silver and black suit with a chain of basketball cards around his neck.
AIData centers
From the Trump administration to Kevin O’Leary, there’s a new narrative that China is to blame for plummeting data center popularity
By Sasha RogelbergJune 10, 2026
6 hours ago
JB Straubel, co-founder of Tesla and founder and CEO of Redwood Materials, speaking at Fortune Brainstorm Tech 2026 in Aspen, Colorado. (Photo: Michael Faas/Fortune)
NewslettersFortune Tech
Why China is outpacing the U.S. power grid
By Andrew NuscaJune 10, 2026
7 hours ago

Most Popular

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
Asia
Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
By Kate O'Keeffe and BloombergJune 8, 2026
2 days ago
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
Economy
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
By Nick LichtenbergJune 9, 2026
22 hours ago
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Success
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
By Preston ForeJune 8, 2026
2 days ago
Current price of oil as of June 9, 2026
Personal Finance
Current price of oil as of June 9, 2026
By Joseph HostetlerJune 9, 2026
1 day ago
Current price of silver as of Tuesday, June 9, 2026
Personal Finance
Current price of silver as of Tuesday, June 9, 2026
By Joseph HostetlerJune 9, 2026
1 day ago
Wall Street dumped nearly $1 trillion in tech stocks by midday—then clawed it back and bought peanut butter and paint
Investing
Wall Street dumped nearly $1 trillion in tech stocks by midday—then clawed it back and bought peanut butter and paint
By Eva RoytburgJune 9, 2026
17 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.