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Cisco to Vortex: Productivity and Broadband Lead the Way
Chambers and Ipsen deliver message on productivity and leadership
May 20, 2002
By John Earnhardt, Cisco Government Affairs
Cisco President and CEO John Chambers and Cisco vice president of
Worldwide Government Affairs, Laura Ipsen, both appeared at the annual
Vortex conference in Dana Point, California, with a message to business
and government leaders - namely, "if you are not on it already,
now is the time to get on the broadband wagon to help enhance productivity."
Vortex
is an annual conference sponsored by Network
World for senior executives, investors, entrepreneurs, and media
in the data and telecommunications, Internet, and entertainment networking
industries.
Speaking to Vortex attendees via satellite from San Jose, California,
Chambers underscored his strong belief that companies and countries
will invest in those technologies that deliver productivity results.
"Cisco has grown productivity by 20 percent over the last four
quarters, with about half of it coming from our use of Internet business
solutions," said Chambers. "Looking ahead, I believe that
most companies can grow productivity between five and 10 percent per
year from basic implementation of Internet applications."
Chambers also discussed the evolution of a business model he calls
the 'networked virtual organization,' noting his belief that this concept
will be one of the most fundamental changes in business in the last
half century. "The networked virtual organization is a business
model based on two basic assumptions - first, that companies and government
organizations will add value on a sustainable basis by focusing efforts
on core capabilities, and second, that they will rely on systems and
outsourcing partners for those responsibilities that others can do more
effectively," said Chambers. "At the heart of this model is
increasing productivity using networking technology to appear as one
virtual entity to their customers."
Chambers has often suggested that other companies could follow Cisco's
policy of providing broadband connectivity to all of their employees
and increase their productivity even more. "If an employee works
from home one hour a month, the cost of that broadband service has paid
for itself. We have found that most employees with broadband at home
work an additional hour each day. To me, it's a no-brainer. Broadband
makes employees more productive at work, at home, and with wireless
applications, on the road."
Ipsen participated on the panel, "I'm here to help: Does the
network industry need Uncle Sam?" moderated by Network World Editorial
Director and Vortex Executive Producer John
S. Gallant and San Jose Mercury News technology columnist
Dan
Gillmor.
Ipsen's main points were that the government is involved in the Internet
and networking, but to date has been relatively hands-off. "Governments
can still do much to send a message that broadband is important."
Referring to the digital divide, Ipsen said, "Although, the market
will do most of the work to deploy broadband - the government must fill
in the edges in order for everybody to participate."
Ipsen pointed out that there still is much opportunity for leadership
in the United States on the issue and vision of broadband. "Broadband
is not a political issue. Congressional leaders on both sides of the
aisle have shown intense interest in broadband. I would not be surprised
if broadband deployment becomes an issue where candidates attempt to
show leadership in the 2002 and 2004 elections."
Other speakers and attendees scheduled at Vortex include: Craig Barrett,
CEO of Intel; Vinod Khosla, General Partner at Kleiner, Perkins; Scott
Kriens, CEO of Juniper Networks; Kevin O'Hara, President, Level 3 Communications;
Rick White, CEO of TechNet; John Sidgmore, President and CEO of Worldcom;
Ross Ireland, CTO, SBC, and Robert Pepper, Chief, Office of Plans and
Policy, Federal Communications Commission.
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