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david52 Zone 6November 14, 2013

Cisco announced two important things in today's earnings report: The first is that the company is aggressively moving into the Internet of Things - the effort to connect just about every object on earth to the internet - by rolling out new technologies. The second is that Cisco has seen a huge drop-off in demand for its hardware in emerging markets, which the company blames on fears about the NSA using American hardware to spy on the rest of the world.

Cisco chief executive John Chambers said on the company's earnings call that he believes other American technology companies will be similarly affected. Cisco saw orders in Brazil drop 25% and Russia drop 30%. Both Brazil and Russia have expressed official outrage over NSA spying and have announced plans to curb the NSA's reach.

Analysts had expected Cisco's business in emerging markets to increase 6%, but instead it dropped 12%, sending shares of Cisco plunging 10% in after-hours trading.

This completely unexpected turn, which Chambers said was the fastest swing he had ever seen in emerging markets, comes just as Cisco is trying to establish itself as a bedrock technology provider for of the internet of things, which industry analysis firm IDC says will be an $8.9 trillion market by 2020. This quarter Cisco unveiled the nPower chip, a super-fast processor designed to funnel the enormous volumes of data that the internet of things will generate. Cisco also announced the Network Convergence System, a handful of routers that will use the nPower chip.

Arguably, the current shift in the underlying infrastructure of the internet makes Cisco and other American companies uniquely vulnerable. The move to cloud services, streaming video and machine to machine communication (i.e., the internet of things) means new standards and new default hardware providers are taking root, and if NSA spying keeps American companies from dominating the market at an early stage, it could mean that in the long run they'll simply be locked out of these markets while competitors like Huawei and ZTE reap the benefits. end quote

So, listening in on Chancellor Angela Merkel's mobile phone has repercussions?

Here is a link that might be useful: link

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marshallz10(z9-10 CA)

Making our freedoms safe has its costs. Sell Cisco to foreign hedgefunds and the profit vista will clear up sooner.

    Bookmark   November 14, 2013 at 3:18PM
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jodik_gw

Shocked, I am, David!

I'm agog that there's a second subject to be had in HT! Who knew?!

Sadly, I have nothing of merit to offer to this discussion, but just wanted to assure myself that it was real and not a mirage...

    Bookmark   November 14, 2013 at 3:52PM
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PRO
Brushworks Spectacular Finishes(5)

It's also a good idea to store your personal data on your own private home network server instead of a pay to store service. There is free software to help you set up your own cloud computing.

I don't believe for one minute that cloud computing offsite is entirely safe.

    Bookmark   November 14, 2013 at 9:02PM
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jodik_gw

Information storage isn't that expensive to purchase, anyway... and it's portable, available in myriad sizes of capacity, etc... why would anyone place all their personal or financial information elsewhere in "tech space" when they can just as easily clone or back it up onto their own hard drives for storage? Of course, personal and business are quite different and would require different space allotments, etc...

It's seems like a great big "Doh!"... if the US got caught spying, why would other countries remain customers of those same companies involved in the spying through the technology or equipment?

Wait... I hope that came out right... I'm not up to level on coffee yet.

    Bookmark   November 15, 2013 at 7:40AM
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haydayhayday

I fear 1984 has arrived. In my wee little brain, it's one of the things I fear the most. Couple the ability to keep tabs on our every movement with the penchant of governments to overstep their bounds.... we're in trouble.

Last night on NPR's Marketplace, there was a story about how this ability to track our every movement is coming to our workplace.

"âÂÂI had a finance manager who just wasnâÂÂt getting the job done,â says Celeste OâÂÂKeefe, who runs DANCEL Multimedia in Biloxi, Miss. âÂÂAnd I was wondering, âÂÂwhat is going on?â So we went to look. She was playing games all day.âÂÂ

...

Ibañez stopped cold and looked at her computer. âÂÂSee another one,â she says.

A RydeSmart alert window pops up on her screen: Hard Break

âÂÂThe same guy,â she says. It was the third sudden stop alert from truck number 157. âÂÂThis guyâÂÂs falling asleep probably. IâÂÂm going to call him.âÂÂ

Ibañez picks up her iPhone and dials.

âÂÂHola, Rolando... You have a problem,âÂÂ....

Hay

    Bookmark   November 15, 2013 at 9:23AM
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