Cisco Systems is a multinational corporation with its head office in San Jose, California and it offers dedicated services in Internet and networking. Cisco, the name of the company originated from San Francisco, a city in California.
Sandy Lerner and Len Bosack were the founders of Cisco. They were husband and wife who were employed as computer scientists at Stanford University. In the beginning, it was quite tough for both of them.
In 1988, an angel investor named Donald Valentine consented to invest in Cisco. On 16th February 1990, the company launched its IPO with a market cap of 224 million dollars.
Cisco disclosed revenues to the tune of $51.9 billion in 2019.
About Cisco Systems
Cisco Systems, Incorporated is a tech MNC that serves several industries with its head office in San Jose, California. It lies at the heart of Silicon Valley. Cisco is involved in devising, producing, and marketing software, networking hardware, telecom devices, and other varieties of high-tech products and services. Cisco Systems has specialization in particular technology marketplaces like domain security, the Internet of Things (IoT), as well as energy management. The company carries out its operations via several wholly-owned subsidiaries like the following:
On 8th June 2009, the stock of Cisco Systems was listed in the Dow Jones Industrial Average. It is also a part of the following indices:
- The Russell 1000 Index
- The S&P 500 Index
- The Russell 1000 Growth Stock Index
- NASDAQ-100 Index
2020 was a landmark year for the company. Fortune magazine graded Cisco at #4 on the yearly list of the hundred best organizations to work for in 2020 founded on a workforce review of gratification.
In 1984 December, Sandy Lerner and Leonard Bosack set up Cisco Systems. At that point, they were working as computer scientists at Stanford University who played a key role in linking computers. Lerner and Bosack were innovators of the idea of a LAN (local area network) utilized for linking physically different PCs over a multipronged router setup.
Cisco enjoyed a market cap of 224 million dollars by the period it turned public in 1990. In 2000, by the close of the dot.com bubble, the market cap went up to 500 billion.
Till 2020 November, the market cap of the company touched approximately $173 billion.
How it all happened for Cisco Systems
In 1984, Sandy Lerner was employed as the director of computer installations for the Stanford Graduate School of Business and Leonard Bosack headed the responsibility of keeping up the computers of the computer science department.
The oldest product of Cisco was the Blue Box, a multiprotocol router. This router made a significant contribution to Cisco’s growth in the beginning stages. Stanford University accredited the router software and 2 computer circuits to Cisco Systems. In the beginning, the Cisco team comprised the following people:
- Sandy Lerner
- Leonard Bosack
- Greg Satz (a computer programmer)
- Kirk Lougheed
- Richard Troiano (who looked after marketing)
The products of Cisco were designed in a garage. In early 1986, they were marketed via word-of-mouth. Just in the 1st month, the company could achieve deals worth above $200,000. Advanced routing protocols and groundbreaking technologies like the oldest multiport router-oriented digital line cards provided them an edge over their competitors. Bosack quit the year Cisco became public. Sandy and Leonard left with a layoff package of $170 million in 1990.
William Graves was the first CEO of Cisco Systems, Inc. and he retained the position from 1987-88. John Morgridge took over as the Chief Executive Officer in 1988.
After going public in 1990, Sandy Lerner was sacked. Once her husband Leonard came to know about it, he also quit the company as a mark of dissent. They got separated in the early 90s.
Some acquisitions took place from 1992-1994 such as the following:
- Grand Junction
- And most remarkably, Crescendo Communications of Mario Mazzola
These companies jointly created the Catalyst business division. In 1995, John T. Chambers took over as CEO.
Silicon Intelligence and Internet: 1996-2005
Users started to assume the IP or Internet Protocol in the middle of the 90s. In 1996, the revenues of the company reached $5.4 billion, helping it become one of the largest success tales in Silicon Valley. Cisco had a valuation of more than $6 billion and regulated almost 75% of the router trade. At the end of March 2000, Cisco turned into the highest valued firm in the world, having a market cap surpassing $500 billion.
Till 2014 July, Cisco still ranked among the most valued firms in the world, having a market cap of around 129 billion US dollars.
The Human Network: 2006-2012
In 2006, as a component of a rebranding move, the company came up with an innovative publicity drive called The Human Network. The idea was to turn Cisco into a household name.
During the middle of the 2000s, Cisco made its footprint in India, setting up its Globalization Hub East in Bengaluru. It spent $1 billion on accomplishing it. The company also ventured into new markets through buying companies such as Starent Networks, a specialized mobile infrastructure services provider in 2009.
In 2011, because of less than anticipated gains, the company cut down its yearly outlays by 1 billion dollars. Around 3,000 workers were also laid off via a premature retirement plan who acknowledged a takeover. They also intended to get rid of 10,000 positions (equivalent to 14% of the workforce of 73,400 ahead of the layoff).
On 24th July 2012, the company got permission from the European Union to take over NDS (a software development company for televisions) at a valuation of $5 billion. The Linksys home-router division was sold off in 2013 to Belkin International Inc., indicating a changeover to marketing to commercial enterprises instead of individual customers.
On 23rd July 2013, Cisco declared a conclusive deal to take over Sourcefire at a valuation of $2.7 billion. On 14th August 2013, the company reported that it would diminish 4,000 employees from its manpower which was approximately 6%, beginning in 2014.
In 2014 April, the company reported financing for early-phase corporations for concentrating on the IoT (Internet of Things). The amount of investment was apportioned to investing in startups and Internet of Things accelerators like EVRYTHNG, Ayla Networks, and The Alchemist Accelerator. At the end of 2014, Cisco made a declaration that it was dismissing 6,000 employees more or 8% of its worldwide manpower as a segment of a 2nd reorganizing. On 4th November 2014, the company declared investment in a software company named Stratoscale.
For the 2018 fiscal, Cisco declared income of $0.1 billion, and the yearly revenue was $49.3 billion, a 2.8% hike from the earlier financial cycle. The stocks of Cisco were transacted at more than $43 each share, and in 2018 September, the market cap was held at $213.2 billion. Depleted Net Income for the 2018 fiscal was ascribed to a tax imposition on one occasion that enabled the firm to return its capital from abroad. The firm utilized this fund it could return at a diminished rate of taxation for financing acquisitions and stock redemptions.
On 25th January 2021, the company got reincorporated in Delaware.