Cisco to enter the digital home market- It is heaven or hell-.docVIP

 PAGE \* MERGEFORMAT 5 Cisco to enter the digital home market: It is heaven or hell? Superfish slowed down the pace of growth Known to mergers and acquisitions, Cisco has been rapidly growing up in the industry known as superfish. Before 2000, Cisco Systems with the Internet explosion during the accumulation of huge amount of capital to carry out a large-scale acquisitions, mergers and acquisitions within a year as many as dozens of companies, Cisco’s market capitalization had broke through 444 billion U.S. dollars, more than 358 billion U.S. dollars at that time Microsoft has become the world’s most valuable company. Currently, Cisco’s market capitalization is still more than 100 billion U.S. dollars. However, in recent years this superfish has slowed the pace of growth. In China, Huawei holding the price and service both the sword, not killing Cisco was injured. Cisco’s sales in four consecutive years, can only be maintained at about 600 million U.S. dollars, or even decline slightly each year. Cisco’s fiscal 2006 first quarter (August 2005 -11 months) report shows that despite the orders reached a record high, but the growth rate of China, Asia-Pacific region only reached an average level of 30%, much lower than India’s 70%. This performance is not surprising. On the one hand the network equipment market growth slows; the other hand, intensifying market competition. Therefore, the Cisco urgent need to find a new growth point performance. Currently, Cisco’s most important task is to breakout out, in the increasingly eating into the market rallied. Cisco’s focus on digital home market has become the breakout direction. ‘Replacement Suspect’ turn: into the digital home market, As early as 90 years, Cisco began to test the water for the digital home. Cisco employ 300 people producing equipment, home networking products, including co-operation and the Whirlpool Bridge and the Internet at the time very advanced video telephony. Com bubble bu