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Cisco CEO John Chambers on Web 2.0, Collaboration, Avatars and Mashups

By Stefan Hammond

July 13, 2007 — Computerworld Hong Kong — Computerworld Hong Kong (CWHK): You said [in your keynote] that SMBs tend to react faster than enterprises, can you elaborate on that?

John Chambers, CEO of Cisco Systems Inc. (JC): SMBs tend to make decisions quickly because of their business knowledge and their ability to view technology as a way to achieve their goals. Very often large enterprises evaluate the technology, evaluate the options, have a business sponsor, and roll it out carefully over time. So, often SMBs understand the business options quicker.

One thing that may change the equation for enterprises is when you see an application like TelePresence (Cisco's new high-definition video-conferencing technology) where you just simply don't need to explain it: the CEO can see [the benefit] right away. It isn't like many enterprise apps where it takes 3 to 4 years to implement and integrate with the applications you put on top of it, to make it effective in the long-term.

With TelePresence, it's a best-case scenario: simple, integrated, converged. When you see it, you know you're going to save on business travel [and] on your service and support models. We think that TelePresence will have a major impact.

CWHK: You also said that you expect your own company to save about US$150 million annually.

JC: That's correct. That's money in the bank, and it was very easy to do. That's before you do the 'fancy stuff': how you use this technology to work from home a little bit differently, how to design your sensors to run your office more effectively, more efficient data center usage.

CWHK: Obviously TelePresence is aimed at reducing business travel, thus helping enterprises to improve their "carbon footprint." Do you see other opportunities for Cisco to improve their "green" profile?

JC: There are many ways, whether it's improving the efficiency of your data centers, or improving the functionalities of equipment that's not being used to its fullest potential. Part of it is personalizing use of technology: when you can get the information you want in the medium you want it in, whether it be email, voice or video, that's a gain in efficiency as well. We believe in open architecture, simplicity, and interoperability, and these [qualities] make this personalization possible.

Back to TelePresence, we think that any company deploying this technology will save 10-20 percent on their business travel costs. This isn't something we developed overnight, we've taken about six years of development to get to this point.

 

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