By Jon D. Markman, Contributing Writer, Money Morning
reads different than Jack Barnes' article.…
Very good article about some of the specifics, but a big part of Cisco's slow down is big picture things that you missed. By the way it's only normal in times of Depression for needs not to go away but clients to demand a product for a whole lot less price. Thats a big part of what Depressions are about. Don't kid anyone we started down this Depression road with the Crash of the Stock Markets in 2000 and the bottom will probably be in 2014-2016. This is a huge one that is a 240 year event, not like the smaller one in the 1930's!
1.) Over the last 10 years a huge part of Cisco's increase in Gross Sales and then Profit came not from product that they make, but from constantly buying Tech. Companies to grow their top accounting line and then after deducting Good Will, they booked those as Profit. Legal with today's crazy accounting but what gimerky?
2.) Next Cisco is very prone to be beaten up from Competition including from China.
3.) Cisco has built a huge straw house in my book, by the directing of customers to have to employ very high priced people to constantly update Security lists, stating on which ports who can talk, and who can't. Needed, but DUMB placement. They've been shoving a lot of their needed programing on the customer as this should be mainly done with programing at the factory and the customer would just get promps to put in addresses to filter in or not. BAD Engineering! Oh, and it makes customers hire several if not dozens of six figure salary Network Engineer's to maintain these lists in every company. .Very time consuming of very valuable people for what should be a simple task, if Cisco had done the programing as described above at the factory. It's a huge Billions of Dollars drain every year combined for the US Economy. Definitely NOT helping any productivity factor.
Oh, and when they don't have these CCIE's, they have to hire them from Cisco's Engineering Services for thousand's of dollars per day including expenses for weeks, or months on end.
Do, you get my drift – Cisco is VERY vulnerable to competitors doing their homework, doing the programing at the Factory of those switches to make it very user friendly to input their Security Lists in those switches and maintain them. Mark my words, they will be taken out and flogged by competition – in just the way I'm describing above.
Cordially,
R. Cuyler Salyer
Networking Engineer and Tech. Trainer for over 19 years
Time to buy is now, it is a great value play.
reads different than Jack Barnes' article.
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