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Cisco Systems, Inc. (using the trademark Cisco) is an American multinational digital communications technology conglomerate corporation headquartered in San Jose, California. Cisco develops, manufactures, and sells networking hardware, software, telecommunications equipment and other high-technology services and products.[4] Cisco specializes in specific tech markets, such as the Internet of things (IoT), domain security, videoconferencing, and energy management with products including Webex, OpenDNS, Jabber, Duo Security, Silicon One, and Jasper.

Key Information

Cisco Systems was founded in December 1984 by Leonard Bosack and Sandy Lerner, two Stanford University computer scientists. They pioneered the concept of a local area network (LAN) being used to connect distant computers over a multiprotocol router system. The company went public in 1990 and, by the end of the dot-com bubble in 2000, had a market capitalization of $500 billion, surpassing Microsoft as the world's most valuable company.[5][6]

Cisco stock (CSCO), trading on Nasdaq since 1990, was added to the Dow Jones Industrial Average on June 8, 2009. It is also included in the S&P 500, Nasdaq-100, and the Russell 1000 indices.[7][8]

History

[edit]

1984–1995

[edit]
Cisco's first router, the Advanced Gateway Server (AGS) router (1986)

Cisco Systems was founded in December 1984 by Sandy Lerner, along with her husband Leonard Bosack. Lerner was the director of computer facilities for the Stanford University Graduate School of Business. Bosack was in charge of the Stanford University computer science department's computers.[9]

Cisco's initial product has roots in Stanford University's campus technology. In the early 1980s, students and staff at Stanford, including Bosack, used technology on the campus to link all of the school's computer systems to talk to one another, creating a box that functioned as a multi-protocol router called the "Blue Box".[10] The Blue Box used circuitry made by Andy Bechtolsheim, and software that was originally written at Stanford by research engineer William Yeager.[10] Due to the underlying architecture, and its ability to scale well, Yeager's well-designed invention became a key to Cisco's early success.[11]

In 1985, Bosack and Stanford employee Kirk Lougheed began a project to formally network Stanford's campus.[10] They adapted Yeager's software into what became the foundation for Cisco IOS, despite Yeager's claims that he had been denied permission to sell the Blue Box commercially. On July 11, 1986, Bosack and Lougheed were forced to resign from Stanford and the university contemplated filing criminal complaints against Cisco and its founders for the theft of its software, hardware designs, and other intellectual properties.[10] In 1987, Stanford licensed the router software and two computer boards to Cisco.[10] In addition to Bosack, Lerner, Lougheed, Greg Satz (a programmer), and Richard Troiano (who handled sales), completed the early Cisco team.[10] The company's first CEO was Bill Graves, who held the position from 1987 to 1988.[12] In 1988, John Morgridge was appointed CEO.[13]

The name "Cisco" was derived from the city name San Francisco, which is why the company's engineers insisted on using the lower case "cisco" in its early years.[14] The logo is a stylized depiction of the two towers of the Golden Gate Bridge.[15]

On February 16, 1990, Cisco Systems went public with a market capitalization of $224 million, and was listed on the NASDAQ stock exchange. On August 28, 1990, Lerner was fired. Upon hearing the news, her husband Bosack resigned in protest.[16]

Although Cisco was not the first company to develop and sell dedicated network nodes,[17] it was one of the first to sell commercially successful routers supporting multiple network protocols.[18] Classical, CPU-based architecture of early Cisco devices coupled with flexibility of operating system IOS allowed for keeping up with evolving technology needs by means of frequent software upgrades. Some popular models of that time (such as Cisco 2500) managed to stay in production for almost a decade virtually unchanged. The company was quick to capture the emerging service provider environment, entering the SP market with product lines such as Cisco 7000 and Cisco 8500.[19]

Between 1992 and 1994, Cisco acquired several companies in Ethernet switching, such as Kalpana,[20] Grand Junction[21] and most notably, Mario Mazzola's Crescendo Communications,[22] which together formed the Catalyst business unit. At the time, the company envisioned layer 3 routing and layer 2 (Ethernet, Token Ring) switching as complementary functions of different intelligence and architecture—the former was slow and complex, the latter was fast but simple. This philosophy dominated the company's product lines throughout the 1990s.[19]

In 1995, John Morgridge was succeeded by John T. Chambers.[23]

1996–2005: Internet and silicon intelligence

[edit]
Logo used in the 1990s and early 2000s
Logo used in the 1990s and early 2000s
John T. Chambers in 2010, who was the CEO between 1995 and 2015.[24]

The Internet Protocol (IP) became widely adopted in the mid-to-late 1990s.[25] Cisco introduced products ranging from modem access shelves (AS5200) to core GSR routers, making them a major player in the market.[25] In late March 2000, at the height of the dot-com bubble, Cisco became the most valuable company in the world, with a market capitalization of more than $500 billion.[5][26] As of July 2014, with a market cap of about US$129 billion,[27] it was still one of the most valuable companies.[28]

The perceived complexity of programming routing functions in silicon led to the formation of several startups determined to find new ways to process IP and MPLS packets entirely in hardware and blur boundaries between routing and switching. One of them, Juniper Networks, shipped their first product in 1999 and by 2000 chipped away about 30% from Cisco SP Market share. In response, Cisco later developed homegrown ASICs and fast processing cards for GSR routers and Catalyst 6500 switches. In 2004, Cisco also started the migration to new high-end hardware CRS-1 and software architecture IOS XR.[29]

2006–2012: The Human Network

[edit]
Russian President Dmitry Medvedev and California Gov. Arnold Schwarzenegger at Cisco, 2010[30]

As part of a rebranding campaign in 2006, Cisco Systems adopted the shortened name "Cisco" and created "The Human Network" advertising campaign.[31] These efforts were meant to make Cisco a "household" brand—a strategy designed to support the low-end Linksys products and future consumer products.[19]

On the more traditional business side, Cisco continued to develop its routing, switching and security portfolio. The quickly growing importance of Ethernet also influenced the company's product lines. Limits of IOS and aging Crescendo architecture also forced Cisco to look at merchant silicon in the carrier Ethernet segment. This resulted in a new ASR 9000 product family intended to consolidate the company's carrier Ethernet and subscriber management business around EZChip-based hardware and IOS-XR.[19]

In March 2007, Cisco acquired Reactivity Inc, a privately held XML gateway provider based in Redwood City, California. Cisco placed the Reactivity team and product portfolio under its Datacenter Switching and Security Technology Group, which reported to the company's then senior vice president Jayshree Ullal.[32]

Throughout the mid-2000s, Cisco also built a significant presence in India, establishing its Globalization Centre East in Bangalore for $1 billion.[33] Cisco also expanded into new markets by acquisition—one example being a 2009 purchase of mobile specialist Starent Networks.[34]

Cisco continued to be challenged by both domestic competitors Alcatel-Lucent, Juniper Networks, and an overseas competitor Huawei. Due to lower-than-expected profit in 2011, Cisco reduced annual expenses by $1 billion. The company cut around 3,000 employees with an early-retirement program who accepted a buyout and planned to eliminate as many as 10,000 jobs (around 14 percent of the 73,400 total employees before curtailment).[35][36] During the 2011 analyst call, Cisco's CEO John Chambers called out several competitors by name,[37] including Juniper and HP.

On July 24, 2012, Cisco received approval from the EU to acquire NDS (a TV software developer) for US$5 billion.[38] In 2013, Cisco sold its Linksys home-router unit to Belkin International Inc., signaling a shift to sales to businesses rather than consumers.[39]

2013–present

[edit]
Former Portuguese President Cavaco Silva, former Cisco CEO John Chambers and Cisco Senior Director of Innovation Helder Antunes, during the 2011 presidential visit to the US

On July 23, 2013, Cisco Systems announced a definitive agreement to acquire Sourcefire for $2.7 billion.[40] On August 14, 2013, Cisco Systems announced it would cut 4,000 jobs from its workforce, which was roughly 6%, starting in 2014.[41] At the end of 2013, Cisco announced poor revenue due to depressed sales in emerging markets, caused by economic uncertainty and by fears of the National Security Agency planting backdoors in its products.[42]

In April 2014, Cisco announced funding for early-stage firms to focus on the Internet of Things. The investment fund was allocated to investments in IoT accelerators and startups such as The Alchemist Accelerator, Ayla Networks and EVRYTHNG.[43] Later that year, the company announced it was laying off another 6,000 workers or 8% of its global workforce, as part of a second restructuring.[44] On November 4, 2014, Cisco announced an investment in Stratoscale.[45]

On May 4, 2015, Cisco announced CEO and Chairman John Chambers would step down as CEO on July 26, 2015, but remain chairman. Chuck Robbins, senior vice president of worldwide sales & operations and 17-year Cisco veteran, was announced as the next CEO.[46] On July 23, 2015, Cisco announced the divestiture of its television set-top-box and cable modem business to Technicolor SA for $600 million,[47] a division originally formed by Cisco's $6.9 billion purchase of Scientific Atlanta. The deal came as part of Cisco's gradual exit from the consumer market, and as part of an effort by Cisco's new leadership to focus on cloud-based products in enterprise segments. Cisco indicated that it would still collaborate with Technicolor on video products.[48] On November 19, 2015, Cisco, alongside ARM Holdings, Dell, Intel, Microsoft and Princeton University, founded the OpenFog Consortium, to promote interests and development in fog computing.[49]

In January 2016, Cisco invested in VeloCloud, a software-defined WAN (SD-WAN) start-up with a cloud offering for configuring and optimizing branch office networks. Cisco contributed to VeloCloud's $27 million Series C round, led by March Capital Partners.[50]

In February 2017, Cisco launched a cloud-based secure internet gateway, called Cisco Umbrella, to provide safe internet access to users who do not use their corporate networks or VPNs to connect to remote data centers.[51] Immediately after reporting their fourth-quarter earnings for 2017, Cisco's price-per-share value jumped by over 7%, while its earnings per share ratio increased from 60 to 61 cents per share, due in part to Cisco's outperformance of analyst expectations.[52] In September 2017, Chambers announced that he would step down from the executive chairman role at the end of his term on the board in December 2017.[53] On December 11, 2017, Robbins was elected to succeed Chambers as executive chairman while retaining his role as CEO, and Chambers was given the title of "Chairman Emeritus".[54][55]

Reuters reported that "Cisco Systems Inc's (CSCO.O) product revenue in Russia grew 20 percent in 2017, ahead of Cisco's technology product revenue growth in the other so-called BRIC countries of Brazil, China and India."[56][57] As of 2017, Cisco Systems shares were mainly held by institutional investors, including The Vanguard Group, BlackRock, and State Street Corporation.[58])

On May 1, 2018, Cisco Systems agreed to buy AI-driven business intelligence startup Accompany for $270 million.[59][60] As of June 2018, Cisco Systems ranked 444th on Forbes Global 2000 list, with $221.3 billion market cap.[61]

In 2019, Cisco acquired CloudCherry, a customer experience management company, and Voicea, an artificial intelligence company.[62][63][64]

In 2019, Cisco also introduced the "Silicon One" ASIC chip with the G100 model reaching a speed of 25.6 Tbit/s.[65] The Silicon One competes against the Tomahawk series by Broadcom the Nvidia Spectrum, the Marvell Teralynx and the Intel Tofino.[66] In 2023, the Silicon One G200 will offer a speed of 51.2 Tbit/sec.[67]

Cisco's Senior Vice President Guy Diedrich with Azerbaijan's President Ilham Aliyev in Davos, Switzerland in January 2023

In March 2020, SVP and GM of Enterprise Networking David Goeckeler left to become CEO of Western Digital. and was replaced by Todd Nightingale, head of Cisco Meraki.[68] In August 2020, Cisco announced the creation of a new 130,000 square feet Midwest headquarters in Chicago at the Old Chicago Main Post Office accommodating 1,200 employees.[69][70] Cisco maintains over 200 corporate offices in more than 80 countries.[citation needed]

In October 2022, Cisco announced a partnership adding the Microsoft Teams app to its meeting devices.[71]

In 2022, Cisco completely curtailed sales of its equipment in Russia due to Russian invasion of Ukraine, and completely discontinued service for already-sold devices. In April 2023, it became known that the company had destroyed equipment, spare parts, and even vehicles and office furniture worth 1.86 billion rubles (about $23 million) due to the impossibility of re-exporting.[72] In February 2023, Cisco also wrote off the debt of the Russian mobile operator MTS in the amount of 1.234 billion rubles. As expected, these are unpaid amounts for previous equipment deliveries.[73] In 2023, Cisco announced plans to begin manufacturing equipment in India.[74]

On February 15, 2024, Cisco announced it would lay off more than 4,000 employees, or 5% of its global workforce, and lowered its annual revenue forecast due to economic challenges and reduced demand from telecom and cable service providers.[75][76]

On March 5, 2024, Cisco Systems announced to secure unconditional EU antitrust approval for its $28 billion bid for cybersecurity firm Splunk.[77]

On April 24, 2024, Chuck Robbins, CEO of Cisco, met with Pope Francis and signed the Rome Call for AI ethics at the Vatican, endorsing the document's principles for responsible and ethical AI use.[78]

On August 14, 2024, Cisco announced it would lay off another 7% of employees as part of an effort to consolidate its networking, security, and collaboration teams. At the same time, it announced $10.3 billion in profit for the fiscal year.[79]

In October 2024 Cisco consolidated its corporate offices in the Bay Area and moved its main headquarters to the former Splunk office on the south side of Santana Row in San Jose.[80][81]

On August 13, 2025, Cisco against announced it would eliminate 221 positions across its Milpitas and San Francisco offices. At the same time, the company once again announced an 8% increase in revenue for the fiscal year.[82]

Financials

[edit]
Year Revenue
(mil. US$) 		Net income
(mil. US$) 		Total assets
(mil. US$) 		Price per share
(US$) 		Employees
2000[83]
2001[83] 22,293 −1,014 35,238 16.69
2002[83] 18,915 1,893 37,795 11.80
2003[84] 18,878 3,578 37,107 14.38
2004[84] 22,045 4,401 35,594 17.44
2005[84] 24,801 5,741 33,883 14.67
2006[85] 28,484 5,580 43,315 17.45 49,930
2007[86] 34,922 7,333 53,340 23.07 61,560
2008[87] 39,540 8,052 58,734 18.15 66,130
2009[88] 36,117 6,134 68,128 16.14 65,550
2010[89] 40,040 7,767 81,130 18.74 70,700
2011[90] 43,218 6,490 87,095 14.10 71,830
2012[91] 46,061 8,041 91,759 15.34 66,640
2013[92] 48,607 9,983 101,191 19.20 75,049
2014[93] 47,142 7,853 105,070 21.22 74,042
2015[94] 49,161 8,981 113,373 25.09 71,833
2016[95] 49,247 10,739 121,652 26.83 73,700
2017[96] 48,005 9,609 129,818 31.97 72,900
2018[97] 49,330 110 108,784 43.65 74,200
2019[98] 51,904 11,621 97,793 55.84 75,900
2020[99] 49,301 11,214 97,793 — 77,500
2021[100] 49,818 10,591 97,497 — 79,500
2022[101] 51,557 11,812 94,002 — 83,300
2023[102] 56,998 12,613 101,852 — 84,900

Acquisitions and subsidiaries

[edit]
Further information: List of acquisitions by Cisco

Cisco acquired a variety of companies to spin products and talent into the company. In 1995–1996 the company completed 11 acquisitions.[103] Several acquisitions, such as Stratacom,[104] were one of the biggest deals in the industry when they occurred.[105] During the Internet boom in 1999, the company acquired Cerent Corporation, a start-up company located in Petaluma, California, for about US$7 billion.[106] It was the most expensive acquisition made by Cisco to that date, and only the acquisition of Scientific Atlanta has been larger.[107] In 1999, Cisco also acquired a stake for $1 billion in KPMG Consulting to enable establishing Internet firm Metrius founded by Keyur Patel of Fuse.[108] Several acquired companies have grown into $1Bn+ business units for Cisco, including LAN switching, Enterprise Voice over Internet Protocol (VOIP) platform Webex and home networking. The latter came as result of Cisco acquiring Linksys in 2003 and in 2010 was supplemented with new product line dubbed Cisco Valet.

Cisco announced on January 12, 2005, that it would acquire Airespace for US$450 million to reinforce the wireless controller product lines.[109]

Cisco announced on January 4, 2007, that it would buy IronPort in a deal valued at US$830 million[110][111] and completed the acquisition on June 25, 2007.[112] IronPort was best known for its IronPort AntiSpam, its SenderBase email reputation service and its email security appliances. Accordingly, IronPort was integrated into the Cisco Security business unit.[113] Ironport's Senderbase was renamed as Sensorbase to take account of the input into this database that other Cisco devices provide.[114] SensorBase allows these devices to build a risk profile on IP addresses, therefore allowing risk profiles to be dynamically created on http sites and SMTP email sources.[115]

In 2010, Cisco bought Starent Networks (a mobile packet core company) for $2.9 billion[116][117] and Moto Development Group, a product design consulting firm that helped develop Cisco's Flip video camera.[118][119] Also in 2010, Cisco became a key stakeholder in e-Skills Week. In March 2011, Cisco completed the acquisition of privately held network configuration and change management software company Pari Networks.[120]

Although many buy-ins (such as Crescendo Networks in 1993, Tandberg in 2010) resulted in acquisition of flagship technology to Cisco, many others have failed—partially or completely.[121] For instance, in 2010 Cisco occupied a meaningful share of the packet-optical market,[122] revenues were still not on par with US$7 billion price tag paid in 1999 for Cerent. Some of acquired technologies (such as Flip from Pure Digital) saw their product lines terminated.[123][124]

Cisco Systems in Bengaluru, India
Munich, Germany
Oslo, Norway
Cisco campuses all over the world

Cisco announced on March 15, 2012, that it would acquire NDS Group for $5bn.[125][126]

In January 2013, Cisco Systems acquired Israeli software maker Intucell for around $475 million in cash, a move to expand its mobile network management offerings.[127][128] In the same month, Cisco Systems acquired Cognitive Security, a company focused on Cyber Threat Protection. Cisco also acquired SolveDirect (cloud services) in March 2013[129] and UK-based Ubiquisys (mobile software) in April 2013 for $310 million.[130]

Cisco acquired cyber-security firm Sourcefire, in October 2013.[131][132] On June 16, 2014, Cisco announced that it has completed the acquisition of ThreatGRID, a company that provided dynamic malware analysis and threat intelligence technology.[133]

On June 17, 2014, Cisco announced its intent to acquire privately held Tail-f Systems, a leader in configuration management software.[134][135]

On April 2, 2015, Cisco announced plans to buy Embrane, a software-defined networking startup. The deal will give Cisco Embrane's software platform, which provides layer 3–7 network services for things such as firewalls, VPN termination, server load balancers and SSL offload.[136]

On May 7, 2015, Cisco announced plans to buy Tropo,[137] a cloud API platform that simplifies the addition of real-time communications and collaboration capabilities within applications.[138]

On June 30, 2015, Cisco acquired privately held OpenDNS, the company best known for its DNS service that adds a level of security by monitoring domain name requests.[139]

On August 6, 2015, Cisco announced that it has completed the acquisition of privately held MaintenanceNet, the US-based company best known for its cloud-based contract management platform ServiceExchange.[140] On the same month, Cisco acquired Pawaa, a privately held company in Bangalore, India that provides secure on-premises and cloud-based file-sharing software.[141]

On September 30, 2015, Cisco announced its intent to acquire privately held Portcullis Computer Security, a UK-based company that provides cybersecurity services to enterprise clients and the government sectors.[142]

On October 26, 2015, Cisco announced its intent to acquire ParStream, a privately held company based in Cologne, Germany, that provides an analytics database that allows companies to analyze large amounts of data and store it in near real-time anywhere in the network.[143]

On October 27, 2015, Cisco announced that it would acquire Lancope, a company that focuses on detecting threat activity, for $452.5 million in a cash-and-equity deal.[144]

On June 28, 2016, Cisco announced its intent to acquire CloudLock, a privately held cloud security company founded in 2011 by three Israeli military veterans,[145] for $293 million.[146] The deal was expected to close in the first quarter of 2017.

In August 2016, Cisco announced it is getting closer to making a deal to acquire Springpath, the startup whose technology is used in Cisco's HyperFlex Systems. Cisco already owns an undisclosed stake in the hyper-converged provider.[147] In September 2023, Cisco announced discontinuation of its HyperFlex infrastructure products.[148]

In January 2017, Cisco announced they would acquire AppDynamics, a company that monitors application performance, for $3.7 billion. The acquisition came just one day before AppDynamics was set to IPO.[149]

On January 26, 2017, Cisco founded the Innovation Alliance in Germany with eleven other companies bringing together 40 sites and 2,000 staff to provide small businesses in Germany with expertise.[150]

On August 1, 2017, Cisco completed the acquisition of Viptela Inc. for $610 million in cash and assumed equity awards.[151] Viptela was a privately held software-defined wide area network (SD-WAN) company based in San Jose, Ca.

On October 23, 2017, Cisco Systems announced it would be acquiring Broadsoft for $1.9 Billion to further entrench itself in the cloud communication and collaboration area.[152]

On August 7, 2020, Cisco completed its acquisition of network intelligence company ThousandEyes for around $1 billion.[153][154]

On October 1, 2020, Cisco announced that it would be acquiring Israeli startup Portshift for a reported $100 million.[155]

On December 7, 2020, Cisco announced that it would be acquiring Slido to improve Q&A, polls and engagement in WebEx videoconferencing[156]

On December 7, 2020, Cisco announced the acquisition of U.K based IMImobile in a $730M deal.[157]

On May 3, 2021, Cisco completed its acquisition of Q&A and polling platform Slido, which they offered both as a standalone product and with integrations.[158][159][160]

In 2023, Cisco acquired the following cybersecurity companies: Valtix, Lightspin, and Armorblox.[161][162][163] Cisco also announced its intention to acquire networking and security startup Isovalent later that year.[164]

On September 21, 2023, Cisco announced the acquisition of cybersecurity firm Splunk in a $28 billion deal, its biggest acquisition yet,[165][166] and the acquisition is announced to be completed on March 18, 2024.[167][168]

Products and services

[edit]
Main article: List of Cisco products
Cisco SG300-28 Rackmount switch (top) and Cisco EPC-3010 modem (bottom)

Cisco provides IT products and services across five major technology areas: networking, security, collaboration, data center and IoT.[169]

Cisco is the dominant vendor in the Australian market across all market segments.[170] It uses its Australian office as one of the main headquarters for the Asia-Pacific region.[171]

Hosted Collaboration Solution (HCS)

[edit]

Cisco partners offer cloud-based services based on Cisco's virtualized Unified Computing System (UCS). The Cisco Unified Services Delivery Solution includes hosted versions of Cisco Unified Communications Manager (UCM), Cisco Unified Contact Center, Cisco Unified Mobility, Cisco Unified Presence, Cisco Unity Connection (unified messaging) and Cisco Webex Meeting Center.[172]

Network Emergency Response

[edit]
A Cisco 8851 IP phone

As part of its Crisis Response initiative, Cisco maintains several Network Emergency Response Vehicles (NERV)s.[173] The vehicles are maintained and deployed by Cisco employees during natural disasters and other public crises. The vehicles are self-contained and provide wired and wireless services including voice and radio interoperability, voice over IP, network-based video surveillance and secured high-definition video-conferencing for leaders and first responders in crisis areas with up to 3-72 Mbit/s of bandwidth (up and down) via a 1.8-meter satellite antenna.[174][175]

NERVs are based at Cisco headquarters sites in San Jose, California, and at Research Triangle Park, North Carolina, allowing strategic deployment in North America. They can become fully operational within 15 minutes of arrival. High-capacity diesel fuel-tanks allow the largest vehicles to run for up to 72 hours continuously.[176] The NERV has been deployed to incidents such as the October 2007 California wildfires; hurricanes Gustav, Ike and Katrina; the 2010 San Bruno gas pipeline explosion, tornado outbreaks in North Carolina and Alabama in 2011; and Hurricane Sandy in 2012.[177][178]

The Crisis Response Operations team maintains and deploys smaller, more portable communication kits to emergencies outside of North America. In 2010, the team deployed to assist in earthquake recovery in Haiti and Christchurch (New Zealand). In 2011, they deployed to flooding in Brazil, as well as in response to the 2011 earthquake and tsunami in Japan.[173][179]

In 2011, Cisco received the Innovation Preparedness award from the American Red Cross Silicon Valley Chapter for its development and use of these vehicles in disasters.[180]

Certifications

[edit]
Main article: Cisco certifications
Cisco headquarters in the North San Jose Innovation District

Cisco Systems also sponsors a line of IT professional certifications for Cisco products.[181] There are five (path to network designers) levels of certification: Entry (CCT), Associate (CCNA/CCDA), Specialist(Cisco Certified Specialist), Professional (CCNP/CCDP), Expert (CCIE/CCDE) and recently Architect (CCAr: CCDE previous),[182] as well as eight different paths, Collaboration, CyberOps, Data Center, DevNet, Enterprise, Security, and Service Provider .

Cisco also provides training for these certifications via a portal called the Cisco Networking Academy. Qualifying schools can become members of the Cisco Networking Academy and then provide CCNA level or other level courses. Cisco Academy Instructors must be CCNA certified to be a CCAI certified instructor.[183]

In March 2013, Cisco announced its interest in Myanmar by investing in two Cisco Networking Academies in Yangon and Mandalay and a channel partner network.[184]

Corporate affairs

[edit]

Facilities

[edit]

Cisco is headquartered in San Jose, California at 170 West Tasman Dr. with dozens of buildings comprising its corporate campus.[185] Over 15,000 full-time employees are based at the San Jose campus and the surrounding Bay Area.[186] Cisco's second largest campus in the United States is located at Research Triangle Park in North Carolina with 7,000 employees spanning across 12 buildings.[187]

Awards and accolades

[edit]
In 2010, Secretary of State Hillary Clinton awarded Cisco the Secretary of State's Award for Corporate Excellence, which was presented in Jerusalem by Ambassador James B. Cunningham to Cisco Senior Manager Zika Abzuk

Cisco products, including IP phones and Telepresence, have been seen in movies and TV series.[188] The company was featured in the documentary film Something Ventured which premiered in 2011.[189]

Cisco was a 2002–03 recipient of the Ron Brown Award,[190][191] a U.S. presidential honor to recognize companies "for the exemplary quality of their relationships with employees and communities".[190] Cisco ranked number one in Great Place to Work's World's Best Workplaces 2019.[192] In 2020, Fortune magazine ranked Cisco Systems at number four on their Fortune List of the Top 100 Companies to Work For in 2020 based on an employee survey of satisfaction.[193]

According to a report by technology consulting firm LexInnova, Cisco was one of the leading recipients of network security-related patents with the largest portfolio within other companies (6,442 security-related patents) in 2015.[194]

In 2024, Cisco was awarded Best Office Phone for its CP-8861 model by PhonePrices.co.uk.[195]

Sponsorship

[edit]

In February 2021, Webex signed a multi-year partnership with McLaren Racing as the Official Collaboration Partner of the team.[196] In the following year, the partnership was extended to Cisco as the Official Technology Partner of the team.[197] In October 2023, Cisco was announced as the Official Primary Partner of the McLaren F1 Academy programme. Cisco's branding will be carried on Bianca Bustamante's car, race suit and team kit in the 2024 F1 Academy season.[198][199]

Controversies

[edit]
Cisco Live 2007 in Anaheim, California. Cisco Live is the company's annual exposition and conference.

Shareholder relations

[edit]

A class action lawsuit filed on April 20, 2001, accused Cisco of making misleading statements that "were relied on by purchasers of Cisco stock" and of insider trading.[200] While Cisco denied all allegations in the suit, on August 18, 2006, Cisco's liability insurers, its directors and officers paid the plaintiffs US$91.75 million to settle the suit.[201]

Intellectual property disputes

[edit]

On December 11, 2008, the Free Software Foundation filed suit against Cisco regarding Cisco's failure to comply with the GPL and LGPL licenses and make the applicable source code publicly available.[202] On May 20, 2009, Cisco settled this lawsuit by complying with FSF licensing terms and making a monetary contribution to the FSF.[203]

In October 2020, Cisco was ordered to pay US$1.9 billion to Centripetal Networks for infringement on four cybersecurity patents.[204]

China

[edit]

Cisco has been criticized for its involvement in censorship in the People's Republic of China.[205] According to author Ethan Gutmann, Cisco and other telecommunications equipment providers supplied the Chinese government with surveillance and Internet infrastructure equipment that is used to block Internet websites and track online activities in China.[206] Cisco has stated that it does not customize or develop specialized or unique filtering capabilities to enable governments to block access to information and that it sells the same equipment in China as it sells worldwide.[207]

Wired News had uncovered a purported leaked, confidential PowerPoint presentation from Cisco that detailed the commercial opportunities of the Golden Shield Project of Internet control.[208] In May 2011, a group of Falun Gong practitioners filed a lawsuit under the Alien Tort Statute alleging that Cisco knowingly developed and customized its product to assist the Chinese government in prosecution and abuse of Falun Gong practitioners.[209] The lawsuit was dismissed in September 2014[210] by the United States District Court for the Northern District of California, which decision was appealed to United States Court of Appeals for the Ninth Circuit[211] in September 2015. On July 7, 2023, the Court of Appeals for the Ninth Circuit reversed the lower court's decision and ruled the lawsuit may proceed to trial.[212][213] Cisco filed an appeal with the U.S. Supreme Court.[214]

In 2020, the Australian Strategic Policy Institute accused at least 82 major brands, including Cisco, of being connected to forced Uyghur labor in Xinjiang.[215]

Tax fraud investigation

[edit]

In October 2007, employees of Cisco's Brazilian unit were arrested on charges that they had imported equipment without paying import duties. In response, Cisco stated that they do not import directly into Brazil, and instead use middlemen.[216][217]

Antitrust lawsuit

[edit]

On December 1, 2008, Multiven filed an antitrust lawsuit[224] against Cisco Systems, Inc. Multiven's complaint alleges that Cisco harmed Multiven and consumers by bundling and tying bug fixes/patches and updates for its operating system software to its maintenance services (SMARTnet). In May 2010, Cisco accused the person who filed the antitrust suit, British-Nigerian technology entrepreneur Peter Alfred-Adekeye, with hacking and pressured the US government to extradite him from Canada. Cisco settled the antitrust lawsuit two months after Alfred-Adekeye's arrest by making its software updates available to all Multiven customers.[225][226][227]

Remotely monitoring users' connections

[edit]

Cisco's Linksys E2700, E3500, E4500 devices have been reported to be remotely updated to a firmware version that forces users to register for a cloud service, allows Cisco to monitor their network use and ultimately shut down the cloud service account and thus render the affected router unusable.[228][229]

Firewall backdoor developed by NSA

[edit]

According to the German magazine Der Spiegel the NSA has developed JETPLOW for gaining access to ASA (series 5505, 5510, 5520, 5540 and 5550) and 500-series PIX Firewalls.[230]

Cisco's Chief Security Officer addressed the allegations publicly and denied working with any government to weaken Cisco products for exploitation or to implement security backdoors.[231]

A document included in the trove of National Security Agency files released with Glenn Greenwald's book No Place to Hide details how the agency's Tailored Access Operations (TAO) unit and other NSA employees intercept servers, routers and other network gear being shipped to organizations targeted for surveillance and install covert firmware onto them before they are delivered. These Trojan horse systems were described by an NSA manager as being "some of the most productive operations in TAO because they pre-position access points into hard target networks around the world."[232]

Cisco denied the allegations in a customer document[233] saying that no information was included about specific Cisco products, supply chain intervention or implant techniques, or new security vulnerabilities. Cisco's general counsel also said that Cisco does not work with any government, including the United States government, to weaken its products.[234] The allegations are reported to have prompted the company's CEO to express concern to the President of the United States.[235] Whistle blowers like Edward Snowden,[236] and journalist reporter Julian Assange have echoed similar sentiments publicly.[237]

Spherix patent suit

[edit]

In March 2014, Spherix Incorporated initiated a patent infringement lawsuit against Cisco Systems in the U.S. District Court for the District of Delaware. Spherix alleged that Cisco's routers and switches infringed upon 11 patents it had acquired from the defunct Canadian telecommunications company Nortel Networks. The patents pertained to technologies related to networking and telecommunications equipment.[238]

Spherix contended that Cisco's sales of these products in the United States over a five-year period, ending July 27, 2013, amounted to over $43 billion, the majority of which allegedly utilized the patented technologies. The lawsuit sought unspecified damages and accused Cisco of willful infringement.

In June 2015, the court ruled in favor of Cisco, granting summary judgment of non-infringement. The decision was based on the finding that Spherix had failed to demonstrate that Cisco's products infringed upon the asserted patents. This ruling effectively dismissed the case, concluding the legal proceedings in favor of Cisco.

As of June 2025, there have been no further legal actions or developments related to this particular lawsuit.[239]

India net censorship role

[edit]

As of April 2020 Cisco Systems is alleged to be helping the Indian Jammu and Kashmir administration build a firewall that will prevent Internet users in Kashmir from accessing blacklisted websites, including social media portals, through fixed-line connections.[240] Cisco denies the allegations.[241]

Caste discrimination lawsuit

[edit]

In 2020, a lawsuit was initiated against Cisco and two of its employees by the California Department of Fair Employment and Housing for alleged discrimination against an Indian engineer on account of him being from a lower caste than them.[242][243]

Israeli-Palestinian conflict

[edit]

The Israeli military uses Cisco data centers to support its AI targeting operations in the Gaza Strip and other defense and intelligence activities.[244] At least 32 Cisco employees lost 288 family members in Gaza since October 2023. Employees who have spoken out against Cisco's ties to Israel have been fired, attempts to organize employees in support of divestment have been censored, and the company banned discussion of the conflict in company meetings in April 2025.[245]

See also

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References

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Further reading

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[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

Cisco

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Cisco Systems, Inc. is an American multinational technology company that develops, manufactures, and sells , , software, and related services, powering much of the 's . Founded in December 1984 by computer scientists and , who created the first commercially viable multi-protocol router to connect disparate local area networks, Cisco enabled the scalable growth of internet protocol-based communications. Headquartered in , the company went public in 1990 and expanded aggressively through acquisitions, establishing dominance in enterprise routing and switching markets. By 2024, Cisco reported annual revenue of $53.8 billion, reflecting its scale despite a 6% year-over-year decline amid market shifts toward software and services, with recent quarters showing recovery through growth in subscriptions and AI-integrated solutions. Key achievements include pioneering IP networking standards and amassing over 200 acquisitions to broaden into , collaboration, and , positioning it as a foundational provider for while navigating challenges like disruptions and competition from software-defined alternatives. The firm maintains a global presence with operations in numerous countries, emphasizing secure, resilient networks essential for modern data centers, enterprises, and .

History

Founding and Initial Growth (1984–1995)


Cisco Systems was incorporated on December 10, 1984, by and Sandra Lerner, two computer scientists at who were married at the time. The couple developed proprietary software to link disparate local area networks on the Stanford campus, overcoming incompatibilities between different computer systems and protocols. Initially operating from their home, the founders commercialized this technology to address growing demands for network interconnectivity in academic and research environments. In 1986, Cisco shipped its inaugural product, the Advanced Gateway Server (AGS), a multi-protocol router designed primarily for TCP/IP but supporting additional protocols. This device enabled efficient data routing across heterogeneous networks, positioning Cisco as an early leader in hardware. By 1987, the company had secured $2.5 million in funding, which supported expansion beyond initial sales to universities and research institutions. resigned as vice president of engineering that year amid internal disputes, though the company continued to refine its router technology. Cisco's growth accelerated in the early 1990s, culminating in its on February 16, 1990. 1990 revenue reached $69 million, marking a 155% increase from the previous year, driven by surging demand for routers amid the expansion of TCP/IP-based networks. The company introduced the flagship Cisco 7000 series router in January 1993, enhancing scalability for enterprise deployments. Annual sales surpassed $1 billion by fiscal 1994, totaling $1.24 billion—a 92% rise—before climbing to $1.98 billion in fiscal 1995, a 59% year-over-year gain. This period also saw Sandra Lerner's departure as CEO in 1990 following disagreements over strategy.

Internet Boom and Market Dominance (1996–2000)

Under the leadership of John Chambers, who assumed the role of CEO in January 1995, Cisco Systems experienced explosive growth coinciding with the rapid expansion of the infrastructure in the late . The company's revenue surged from approximately $2 billion in fiscal year 1995 to $19 billion by fiscal year 2000, driven by surging demand for routers, switches, and other essential for connecting enterprises and service providers to the burgeoning . This period marked Cisco's transition from a router-focused firm to a dominant provider of solutions, capitalizing on the causal link between widespread adoption and the need for scalable, reliable data transmission equipment. Cisco's strategy emphasized aggressive acquisitions to accelerate product development and market entry, completing dozens of deals that integrated technologies like (ATM) and LAN switching. Notable examples include the $4.5 billion stock acquisition of StrataCom in 1996, which bolstered wide-area networking capabilities, and subsequent purchases such as Crescendo Communications in 1993 (pre-period but foundational) extended into high-volume buys in 1999 (15 acquisitions) and 2000 (14 acquisitions), totaling over 70 from 1994 to 2001 at a cost of $34.2 billion, nearly all in stock. This approach allowed Cisco to rapidly assimilate talent and innovations without the delays of organic R&D, contributing to its control of key technologies amid the dot-com investment frenzy. By 1999, Cisco held the number-one market share in 16 of the 20 primary networking markets, including core routing and Ethernet switching, where its IOS software and hardware platforms became de facto standards for internet backbone deployment. The company's fiscal 2000 revenue reached $18.93 billion, a 55.5% increase from $12.17 billion in 1999, reflecting annualized growth rates exceeding 50% in peak years as enterprises upgraded networks for e-commerce and web hosting. Cisco's stock, trading on NASDAQ under CSCO, epitomized the era's speculation; shares rose from under $5 (split-adjusted) in 1996 to $34.66 (adjusted closing price on December 31, 1999, accounting for subsequent stock splits including the 2:1 split in March 2000 and dividends; unadjusted closing price approximately $107.12) to over $79 by March 2000, propelling market capitalization to $546 billion and briefly surpassing Microsoft as the world's most valuable company. This dominance stemmed from Cisco's early-mover advantage in TCP/IP-based routing, enabling it to capture value from the internet's causal infrastructure demands rather than peripheral applications.

Post-Dot-Com Recovery and Diversification (2001–2005)

The dot-com bust severely impacted Cisco Systems, with its stock price plummeting approximately 89% from its March 2000 peak amid a broader collapse in technology spending. In early 2001, flawed demand forecasting and excess inventory led to a $2.25 billion write-off, exacerbating financial pressures as orders evaporated. To address this, Cisco announced plans in March 2001 to eliminate up to 5,000 jobs, or 11% of its workforce, followed by an additional 8,500 layoffs in April, totaling about 18% of employees, accompanied by restructuring charges of $800 million to $1.2 billion. Under CEO John Chambers, Cisco undertook a major reorganization in August 2001, restructuring into lines of business focused on customer segments such as enterprise, service provider, and commercial markets, while engineering emphasized 11 technology areas including routing, switching, and security. This shift aimed to streamline operations and align with consolidating markets, avoiding further broad layoffs but allowing for attrition. Financially, revenue for fiscal year 2001 (ended July 2001) reached $22.29 billion, up 18% from the prior year due to lingering momentum, but dipped to approximately $19 billion in fiscal 2002 before rebounding to $24.8 billion by fiscal 2005 amid cost controls and market stabilization. Stock performance reflected volatility, with annual returns of -52.5% in 2001 and -29% in 2002, followed by a strong 85% gain in 2003, though full recovery to pre-bust highs remained elusive for years. Diversification efforts accelerated to reduce reliance on core routing and switching, with Cisco launching its Storage Networking initiative in April 2001 to enter storage area networks via technologies. Key acquisitions included Andiamo Systems in August 2002 for multilayer storage switches, enhancing capabilities in intelligent storage fabrics. The company also prioritized six advanced technologies—enterprise IP communications, home networking, optical networking, , storage area networking, and —to broaden its portfolio beyond traditional . A pivotal move came in November 2005 with the $6.9 billion agreement to acquire Scientific-Atlanta, a leading provider of cable set-top boxes and video distribution systems, marking Cisco's major entry into consumer video networking and end-user equipment. These strategies, combined with emphasis on services and profitability, positioned Cisco for sustained growth despite the era's economic turbulence.

The "Human Network" Phase and Enterprise Focus (2006–2012)

In 2006, Cisco initiated the "The Human Network" advertising campaign, allocating approximately $100 million to reposition the company as a of interpersonal connections enabled by networking infrastructure rather than solely a provider of hardware. This effort emphasized themes of and human interaction, aligning with emerging trends in video and unified communications for enterprise environments. Accompanying the campaign, Cisco adopted a simplified branding as "Cisco," streamlining its public identity while maintaining focus on enterprise-grade solutions. Under CEO John Chambers, the strategy pivoted toward deepening enterprise engagement through intelligent networks that integrated voice, video, and data for business applications. Cisco prioritized acquisitions to expand capabilities in and , including WebEx Communications for $3.2 billion in March 2007, which bolstered conferencing tools for remote enterprise teams. Further deals encompassed IronPort Systems in January 2007 for email appliances and Jabber, Inc. in September 2008 for presence and messaging software, enhancing platforms. These moves supported Cisco's vision of becoming a strategic partner for enterprise , with services revenue growing as a proportion of total sales to provide ongoing support and consulting. The period saw sustained financial expansion amid economic headwinds, including the 2008 recession; annual rose from $24.8 billion in 2006 to $46.1 billion in 2012, driven by enterprise product demand and service contracts. Product , core to enterprise networking, increased 5% year-over-year in fiscal 2012 to $36.3 billion. Cisco maintained dominant market positions, achieving an average 54% share in key enterprise segments like routers and switches by 2012. Later initiatives included the 2012 acquisition of Meraki for $1.2 billion, introducing cloud-managed wireless and security solutions tailored for distributed enterprise networks. Investments in video technologies, such as systems, aligned with forecasts of exponential IP traffic growth, particularly business video, projecting a 35% from 2007 to 2012. This enterprise-centric approach solidified Cisco's role in enabling scalable, secure collaboration infrastructures, even as consumer ventures like (acquired 2009) were later divested.

Cloud, Security, and AI Transformation (2013–2025)

Under CEO , who succeeded John Chambers on July 26, 2015, Cisco shifted its strategy toward software subscriptions, hybrid multicloud architectures, and recurring models to counter declining hardware margins and adapt to enterprise migration trends. This transformation emphasized customer-centric , faster product cycles, and integration with public providers like AWS and Azure, moving beyond traditional on-premises networking. By fiscal 2016, subscription grew 40% year-over-year, reflecting early success in -delivered services such as Meraki's -managed networking, acquired in 2012 but expanded post-2013. Cisco advanced capabilities through targeted acquisitions and platforms, including VeloCloud in May 2017 for software-defined WAN to optimize hybrid connectivity and reduce latency for distributed applications. The Intersight operations platform, launched in 2018, provided multicloud orchestration for compute, networking, and storage, enabling automated lifecycle management across environments. In , the company fortified its defenses with the 2013 acquisition of for $2.7 billion, integrating next-generation intrusion prevention, followed by Duo Security in October 2018 for $2.35 billion to enhance and zero-trust access in ecosystems. These efforts culminated in SecureX, a 2020-launched unified platform that correlated threats across endpoints, networks, and workloads using AI-driven . AI integration accelerated from 2020, with Cisco developing intent-based networking to automate policy enforcement and via , addressing the complexity of AI-driven data flows. Key acquisitions included in August 2020 for $1.15 billion to monitor cloud and internet performance, and the $28 billion purchase of completed in March 2024, bolstering for AI operations and predictive insights. In August 2024, Cisco acquired Robust Intelligence to safeguard AI models against poisoning and inference attacks, forming the Foundation AI team and enabling AI Defense launched January 15, 2025—a framework for secure AI application development, deployment, and runtime protection. By mid-2025, announcements at Cisco Live included AI-native networking for high-bandwidth workloads, Hybrid Mesh Firewalls, and universal zero-trust access, positioning Cisco to secure agentic AI eras amid rising threats from generative models. This evolution drove AI readiness, with Cisco's 2025 index showing top performers achieving 4x faster pilot-to-production cycles for AI initiatives.

Products and Technologies

Core Networking Equipment

Cisco's core networking equipment encompasses routers and switches that enable high-speed data , traffic aggregation, and scalable connectivity in enterprise campus, branch, and environments. These products support protocols such as BGP, OSPF, and MPLS for , while incorporating hardware-accelerated forwarding to handle terabits per second of throughput with low latency. The company's router portfolio centers on the Aggregation Services Routers (ASR) series for edges and enterprise aggregation. The ASR 1000 series, for instance, integrates route processing, services modules, and Ethernet ports in compact chassis, delivering up to 200 Gbps of throughput per slot with features like and encrypted traffic optimization. Models such as the ASR 1002-HX include 8 built-in ports and 8 ports, expandable via Ethernet Port Adapters, targeting applications in WAN aggregation and peering. The ASR 9000 series extends this to carrier-grade cores, offering modular designs with line cards supporting and beyond, non-blocking fabrics up to 456 Gbps in compact form factors like the ASR 9901, which features 16x1G, 24x1/10G, and 2x100G ports for provider edge deployments. Complementary Routers (ISR), such as the Catalyst 8000 edge series (e.g., 8300 for high-throughput branches), incorporate capabilities, , and multicloud routing for distributed enterprise networks. Switches form the other pillar, with the Catalyst family addressing campus and aggregation layers. The Catalyst 9000 series, including stackable models like the 9300 (for access/distribution with up to 48x10G uplinks) and modular 9400 (for core with 40 Gigabit Ethernet support), emphasizes security via TrustSec segmentation, automated provisioning through DNA Center, and power-efficient PoE+ for endpoints. These switches handle hybrid work demands with AI-driven analytics for anomaly detection and scale to thousands of ports in stacked configurations. For data centers, the Nexus series provides non-blocking, low-latency switching; the Nexus 9000 lineup, such as fixed 9300 models and modular 9500 chassis, supports speeds from 1G to 400G Ethernet, VXLAN overlays for virtualization, and fabric extensibility for spine-leaf architectures, enabling high-density server interconnects with capacities exceeding 100 Tbps in large deployments. Nexus platforms prioritize programmability via NX-OS, distinguishing them from Catalyst's IOS-XE focus on unified campus management. These equipment lines integrate with Cisco's and NX-OS operating systems, which evolved from early routing software to support modern overlays like EVPN and segment , ensuring interoperability in multivendor environments while prioritizing deterministic performance over software-defined abstractions alone. Empirical benchmarks show ASR and reducing to sub-millisecond levels under burst loads, validating their role in latency-sensitive applications.

Security and Observability Solutions

Cisco's security solutions encompass a portfolio designed to protect networks, endpoints, cloud environments, and users through integrated technologies including firewalls, threat intelligence, and extended detection and response (XDR) capabilities. The Cisco Secure portfolio features products such as Cisco Secure Firewall for next-generation firewall protection, Cisco Secure Endpoint for advanced malware defense, and Cisco Umbrella for cloud-delivered DNS-layer security that blocks malicious domains. These solutions leverage Talos, Cisco's threat intelligence service, which analyzes over 200 billion daily events to provide real-time threat data and enable proactive defenses. In 2025, Cisco introduced AI-driven enhancements to its XDR platform, focusing on correlating telemetry across networks, endpoints, and cloud to reduce alert fatigue for security teams. Cisco's observability offerings provide visibility into application performance, infrastructure, and digital experiences, particularly through the integration of acquired technologies. Key components include Cisco for application monitoring, for end-to-end network and intelligence, and Observability Cloud, following Cisco's $28 billion acquisition of Splunk in March 2024. On June 5, 2024, Cisco announced a unified full-stack experience combining Splunk's log with AppDynamics and ThousandEyes, enabling real-time insights and faster issue resolution across hybrid environments. By September 2025, Cisco deployed agentic AI within this platform to automate collection, root cause analysis, and alert prioritization, enhancing proactive management of IT operations. The convergence of security and observability in Cisco's ecosystem allows for unified threat detection and operational resilience, with Splunk integrating logs into Cisco's security tools for contextual analysis. This approach supports zero-trust architectures and secure access service edge (SASE) models, as outlined in Cisco's Security Reference Architecture, which emphasizes converged policy enforcement across identity, network, and cloud layers. Despite robust capabilities, Cisco's products have faced scrutiny over vulnerabilities, such as multiple flaws disclosed in August 2025 that could enable arbitrary code execution if exploited.

Collaboration and Communication Platforms

Cisco's collaboration and communication platforms integrate voice, video, messaging, and meeting capabilities to support enterprise , emphasizing secure, scalable solutions for hybrid work environments. The portfolio includes cloud-native and on-premises options, delivered through subscriptions like the Collaboration Flex Plan, which bundles calling, meetings, and management tools. Webex serves as the flagship platform, offering features such as video conferencing for up to thousands of participants, real-time messaging, , and AI-enhanced functionalities like automated transcription and noise removal. Acquired through Cisco's purchase of WebEx Communications on March 15, 2007, for $3.2 billion, Webex evolved from a service—originally launched in the late —into a comprehensive suite supporting integrations with third-party applications and devices. By 2010, Cisco had rebranded and expanded it to include mobile and desktop clients, with subsequent updates focusing on security certifications like and GDPR compliance. Complementing Webex, Cisco Unified Communications Manager (CUCM) provides core call control and session management, enabling IP telephony, video calling, and mobility across endpoints including desk phones and softphones. Released in versions supporting up to 80,000 users per cluster, CUCM integrates with Webex for hybrid deployments and supports features like presence detection and call routing. Cisco Jabber, a cross-platform client for voice, video, and , extends these capabilities to desktops, mobiles, and tablets, with over 10 million daily active users reported in enterprise settings as of recent deployments. Hardware endpoints enhance the ecosystem, including IP phone series like the Cisco 8851, a SIP-compliant desk phone with HD video, , and support for . Cloud offerings such as Cisco BroadWorks deliver multi-tenant calling and for service providers, handling millions of subscribers with features like advanced call analytics and extensibility. These platforms collectively prioritize , with Cisco reporting over 99.999% uptime in services and integration with more than 1,000 partner applications to address enterprise-scale needs.

Emerging Technologies: AI and Quantum Networking

Cisco has integrated into its networking portfolio to enable , automated operations, and enhanced . In June 2025, the company unveiled a secure incorporating AI-powered management tools, next-generation high-capacity devices with low latency, and quantum-resistant to facilitate AI workloads in enterprise environments. Through its Outshift division, Cisco is advancing agentic AI systems, which deploy autonomous agents capable of and across hybrid , positioning the firm to address scalability challenges in AI-driven data centers. Cisco's 2025 AI Readiness Index evaluates global firms' preparedness across , , and skills, demonstrating that high-readiness organizations achieve superior outcomes in revenue growth and . At Cisco Live 2025, the company emphasized AI's role in simplifying IT operations and unifying security, with innovations like AI-accelerated threat detection integrated into its platforms. In cybersecurity, Cisco introduced AI enhancements at RSA Conference 2025, including adaptive defenses against AI-generated threats and collaborations to mitigate talent shortages in securing AI models. These efforts build on Cisco's broader AI strategy, which prioritizes readiness for generative AI, as outlined in its 2025 technology trends report forecasting convergence of AI with and . In quantum networking, Cisco Research operates dedicated Quantum Labs in Santa Monica and San Jose to prototype hardware and software for scalable . A key milestone occurred in May 2025 with the development of a entanglement chip, designed to distribute entangled photons over fiber optics and enable long-distance quantum links compatible with existing classical networks. This hardware supports entanglement swapping, a essential for extending quantum coherence beyond local scales, addressing fundamental limitations in quantum state preservation during transmission. Advancing software capabilities, Cisco Quantum Labs released prototypes in September 2025, including the first network-aware quantum compiler for optimizing qubit allocation across distributed quantum processors and enabling hybrid classical-quantum applications. These tools facilitate simulation and control of quantum protocols, accelerating experimentation in areas like and error-corrected computing. Cisco's approach emphasizes between classical and quantum domains, as demonstrated in October 2025 demonstrations of networked quantum processors that enhance classical through quantum-optimized . To bolster quantum repeater technology, Cisco Investments funded Qunnect in June 2025, supporting room-temperature devices that maintain quantum states over telecom fibers without cryogenic cooling, a practical barrier to widespread deployment. The company hosts an annual Quantum Summit, with the 2025 edition convening experts to discuss national initiatives, industry prototypes, and control software for quantum hardware. These developments position Cisco to contribute to a , focusing on causal mechanisms like entanglement for secure, high-fidelity data transfer unattainable by classical means.

Financial Performance

Cisco Systems experienced rapid growth in its early years, driven by demand for its networking routers and switches amid the expanding infrastructure. In fiscal year 1990 (ending July 31, 1990), reached $69.8 million, with of $13.9 million. By fiscal year 1999, had surged to $12.17 billion, reflecting a compound annual growth rate exceeding 100% in the mid-1990s as the company capitalized on the internet boom. for that year was $2.02 billion. The peak of this expansion occurred in fiscal year 2000, with revenue climbing 55% to $18.93 billion and net income rising to $2.67 billion, fueled by acquisitions and global . However, the dot-com bust led to a contraction; revenue growth slowed, and by fiscal year 2001, it began declining amid reduced capital spending by enterprises and telecoms. Recovery ensued post-2001, with revenue stabilizing and then growing through diversification into services and security. 2005 saw revenue at $24.8 billion, up 12.5% from $22.0 billion in 2004. From the mid-2000s onward, expanded steadily but at diminishing rates, reaching approximately $40-50 billion annually by the , supported by acquisitions like and , though margins faced pressure from and shifting to software/services. More recent trends show peaking at $56.998 billion in 2023 before a 5.61% decline to $53.803 billion in 2024, followed by a 5.3% rebound to $56.654 billion in 2025. Net income followed a similar trajectory, with high profitability in the boom years giving way to volatility. Post-2010, it ranged from $6.49 billion in 2011 to a high of $12.613 billion in 2023, before dropping 18.18% to $10.32 billion in 2024 and further to $10.18 billion in 2025, reflecting impacts from , acquisitions, and share buybacks exceeding in some periods.
Fiscal YearRevenue ($B)Net Income ($B)YoY Revenue Growth (%)Source
201143.2186.49-
201246.0618.04+6.6
201348.6079.98+5.6
201447.1427.85-3.0
201549.1618.98+4.3
201649.24710.74+0.2
201748.0059.61-2.5
201849.3300.11+2.7
201951.90411.62+5.2
202049.30111.21-5.0
202149.81810.59+1.1
202251.55711.81+3.5
202356.99812.61+10.6
202453.80310.32-5.6
202556.65410.18+5.3
Profit margins have generally hovered between 15-25% in recent decades, with dips during acquisition integrations (e.g., 2018's low due to tax reforms and write-downs) and pressures from in hardware. Overall, while growth has matured from hyper-growth to single-digit annual changes, profitability has been sustained through cost controls, recurring software , and capital returns, though recent years indicate challenges from market saturation and in cloud networking.

Recent Fiscal Results and Market Position (Up to FY2025)

Cisco Systems reported 2025 (ended July 26, 2025) of $56.7 billion, a 5% increase from $54.0 billion in 2024. for 2025 reached $10.5 billion. Product grew 6% year-over-year, driven by strong performance in (up 59%) and (up 26%), though the company incurred $744 million in charges. Non- gross margin improved to 68.7%, up 120 basis points from the prior year. In the fourth quarter of 2025, rose 8% year-over-year to $14.7 billion, with non-GAAP increasing 14% to $0.99, surpassing analyst expectations. AI-related infrastructure orders exceeded $800 million in the quarter, contributing to a full-year total surpassing $2 billion, reflecting growing demand for high-performance networking tied to AI deployments. continued to expand as a share of , supporting a shift toward recurring models amid stabilizing enterprise spending. Cisco maintains a dominant position in the enterprise networking market, holding approximately 76% share in core computer networking segments as of mid-2025, ahead of competitors like (around 10%) and . The company leads in , switching, and secure access solutions, bolstered by its scale in installed base and integration of and tools. However, it faces intensifying competition in and cloud-native environments from specialized players, prompting investments in AI-optimized networking and software-defined architectures to sustain leadership. Overall market dynamics favor incumbents like Cisco amid AI-driven infrastructure upgrades, with product order growth of 7% in the fourth quarter signaling recovery from prior inventory corrections. Cisco is scheduled to report its second quarter fiscal year 2026 earnings on February 11, 2026, after market close. The company guided for non-GAAP EPS of $1.01–$1.03 and revenue of $15–$15.2 billion. Analyst consensus expects non-GAAP EPS of approximately $1.02 and revenue of around $15.12 billion, with projected growth in product revenue led by networking.

Corporate Structure and Governance

Leadership and Ownership

Charles H. Robbins has served as chair and of Cisco Systems since July 2015, when he succeeded John Chambers; he was elected board chair in December 2017. Under Robbins' leadership, the company has pursued a strategy emphasizing , security integrations, and acquisitions to adapt to and AI-driven market shifts, including a major organizational restructure in August 2024 that consolidated networking, security, and collaboration units under unified leadership. Robbins, who joined Cisco in 1997, holds a in public policy from the at Chapel Hill and previously led worldwide field operations as senior vice president. The executive team includes Scott Herren as executive and , a role he assumed in 2021 amid efforts to boost recurring revenue streams, though a transition was announced during the fiscal Q3 2025 earnings call. Jeetendra Patel serves as president and , elevated in 2025 to oversee product strategy across hardware and software portfolios. Other senior leaders encompass Liz Centoni as executive and chief customer experience officer, focusing on service delivery and innovation, and Deborah Stahlkopf as executive and chief legal officer, managing global compliance and risk. The , chaired by Robbins, comprises independent members with expertise in , , and , though specific compositions evolve with annual elections; insider remains low at approximately 0.07-1.91% of shares. Cisco Systems operates as a publicly traded corporation on the NASDAQ exchange under the ticker CSCO, with no dominant individual or family control; institutional investors hold the majority stake, reflecting dispersed ownership typical of large-cap technology firms. As of June 29, 2025, The Vanguard Group owned 9.97% of outstanding shares (393,989,568 shares), followed by BlackRock at 9.35% (369,433,385 shares), underscoring the influence of passive index funds in corporate governance decisions such as proxy voting on executive compensation and strategic pivots. State Street Corporation held about 4.89%, while retail and public company investors accounted for roughly 21.62-53.04% of the float, enabling broad market liquidity but limiting activist interventions. This structure aligns with empirical patterns in U.S. tech equities, where institutional dominance correlates with long-term value orientation over short-term speculation, though it has drawn scrutiny for potentially insulating management from shareholder accountability in underperforming periods.

Acquisitions, Mergers, and Subsidiaries

Cisco Systems, Inc. has executed over 200 acquisitions since 1990, spending more than $100 billion to integrate technologies in networking, , , and , often to accelerate market entry or expand capabilities in emerging areas like AI and security. The company's strategy classifies deals into categories such as market acceleration (enhancing existing products), market expansion (broadening customer segments), and new market entry (pioneering technologies like optical transport in the or cybersecurity in recent years). This approach has enabled Cisco to evolve from router-focused hardware to a software-centric provider, though integration challenges have occasionally led to divestitures, such as the 2015 sale of Scientific-Atlanta's assets to for $600 million after initial synergies underperformed. Key early acquisitions laid the foundation for core infrastructure dominance. In August 1999, Cisco acquired Cerent Corporation for approximately $7 billion in stock, gaining next-generation add-drop technology critical for optical networking during the telecom boom. This tied for Cisco's largest deal at the time and positioned it against competitors like in high-speed data transport. In November 2005, Cisco completed the $6.9 billion purchase of Scientific-Atlanta, a provider of cable set-top boxes and video distribution systems, to deepen penetration into service provider video markets and counter threats from IPTV. The deal closed on February 27, 2006, adding manufacturing scale but later facing pressures that prompted asset sales. More recent deals emphasize software and amid shifting revenue from hardware to subscriptions. Cisco's largest acquisition occurred on March 18, 2024, when it completed the $28 billion all-cash purchase of Inc. (initially announced September 21, 2023), acquiring analytics and SIEM platforms to unify , AI-driven insights, and cybersecurity offerings. In 2017, it bought for $3.7 billion to add application performance monitoring, enhancing IT operations analytics. Other notable transactions include in 2017 for $1.9 billion to bolster cloud communications and Acacia Communications in 2021 for $4.5 billion to advance coherent optics. In 2023–2025, Cisco targeted enhancements post-Splunk, acquiring Isovalent on December 21, 2023, for eBPF-based multicloud networking; DeepFactor on August 8, 2024, for cloud-native app ; and SnapAttack on December 16, 2024, for threat detection integration into . Cisco maintains numerous wholly-owned subsidiaries, primarily from integrated acquisitions, supporting global operations in R&D, sales, and specialized technologies. As of September 2023, SEC filings list entities such as Acacia Communications, Inc. (optics), Acano () Limited (video conferencing), AppDynamics, Inc. (analytics), and Splunk Inc. (observability), alongside international arms like Cisco Systems International B.V. () and Cisco do Brasil Ltda. A comprehensive list as of February 2025 includes over 180 entities, such as Adaption LLC (communications) and CliQr Technologies LLC (cloud management), reflecting geographic and functional diversification across 50+ countries. These subsidiaries operate semi-autonomously in some cases, contributing to Cisco's $57 billion annual revenue while enabling tax and regulatory efficiencies.

Global Facilities and Operations

Cisco Systems maintains its corporate headquarters at 3098 Olsen Drive in , with the legal mailing address at 170 West Tasman Drive in the same city. This location serves as the central hub for executive leadership, key research and development activities, and administrative operations. The company operates over 169 office locations across multiple countries, supporting sales, support, and regional management functions. In terms of , Cisco's largest facility outside the is the Global Development Center in Bangalore, , which encompasses R&D, IT operations, and service development. Additional R&D entities include Cisco Systems () Research and Development Co., Ltd. in and facilities in , , as well as historical investments like a center in Tokyo, Japan, focused on routing and software. These sites contribute to innovation in networking technologies, with the Bangalore center being a major contributor to global product development. Manufacturing operations are largely outsourced to contract manufacturers, but Cisco has expanded in-house capabilities, notably inaugurating its first dedicated facility in , , on September 27, 2024, projected to generate 1,200 jobs. This move enhances local testing, deployment, , and repair functions amid diversification efforts. The company's global includes multiple , , and repair sites worldwide, monitored through a centralized Facilities Operations overseeing 330 locations in over 85 countries. As of 2025, Cisco employs approximately 86,200 people globally, with roughly 47.6% based and the remainder distributed across international operations. This workforce supports operations in diverse regions, including significant engineering and support teams in and Europe, aligning with the company's emphasis on distributed hybrid work models.

Research, Development, and Innovation

Key R&D Investments and Patents

Cisco maintains substantial research and development expenditures to sustain its leadership in networking and related technologies, with 2024 R&D costs totaling $7.98 billion, equivalent to 16.36% of . This represented an increase from $7.55 billion in the prior , attributed to expanded headcount and investments in high-priority areas such as integration and cybersecurity enhancements. These outlays support internal innovation labs and global R&D facilities, including centers in , Bangalore, and , focusing on scalable infrastructure for and edge processing. A prominent example of targeted R&D investment is Cisco's June 2024 launch of a $1 billion global AI fund aimed at accelerating AI adoption in enterprise networks, with initial allocations to firms developing foundational models and infrastructure, such as for enterprise-grade language models, Mistral AI for efficient AI systems, and Scale AI for annotation tools. This initiative complements organic R&D efforts in AI-driven networking, including for traffic optimization and automated threat detection, reflecting a strategic pivot toward AI-native architectures amid competitive pressures from hyperscalers. Cisco's patent portfolio underscores its output, encompassing over 25,000 granted globally as of 2023, with approximately 69% remaining active and concentrated in core domains like data switching networks, multiplex communications, and protections against unauthorized access. Key cover foundational networking protocols, such as advancements in and multi-node data encryption (e.g., U.S. No. 5,793,763), as well as recent AI and innovations, including the 25,000th U.S. in 2025 for Hypershield , which enables distributed, AI-powered defenses across software-defined environments. These intellectual properties not only protect proprietary advancements but also generate licensing revenue and deter infringement, as evidenced by ongoing litigation over technologies like policing.

Contributions to Networking Standards and Sustainability

Cisco has played a significant role in the development of networking standards through active participation in bodies such as the (IETF) and the Institute of Electrical and Electronics Engineers (IEEE). As a long-standing IETF supporter, the company has funded infrastructure and participation initiatives, including a commitment of over US$2 million in 2013 to expand in-person and remote involvement in standards development. In April 2025, Cisco donated equipment valued at USD 1.3 million to the IETF, reinforcing its contributions to ongoing protocol evolution. Cisco engineers have contributed to key standards, including (SIP) for collaboration technologies and implementations of IETF and IEEE standards in products like internet and video compression. In industrial networking, Cisco became a founding member of the Open DeviceNet Vendors Association (ODVA) in 2005, advancing protocols by integrating Ethernet with industrial control systems and developing associated security standards. Collaborations, such as the 2008 Ethernet-to-the-Factory design guide with , have promoted converged IP-enabled networks for , emphasizing compliance with vendors' Ethernet requirements. These efforts underscore Cisco's focus on , with documented leadership in standards across , networking, and since at least 2012. On sustainability, Cisco has set targets including net-zero greenhouse gas emissions by 2040 and 100% circular product design by 2025, supported by a takeback program for end-of-use equipment to minimize waste. The company's prioritizes transitioning to clean energy, evolving to a model, and investing in , with self-reported reductions in emissions through programs like Cisco Refresh for refurbished gear and Take-Back-and-Reuse initiatives. Cisco promotes energy efficiency in networking via technologies like (PoE), which delivers power over Ethernet cabling to devices such as IP cameras, reducing separate power infrastructure needs, and tools integrated into its solutions. Internally, the Global Lab Program, leveraging smart power distribution units and , targets a 60% reduction in lab power usage—responsible for the majority of operational energy—and has achieved projected annual savings of at least $9 million. The Energy Networking Initiative applies network data for occupancy-based controls in buildings, aiming to lower electricity consumption through smart connectivity. These measures align with broader goals of resource efficiency and Scope 3 emissions management, though challenges persist in impacts.

Achievements and Industry Impact

Awards, Certifications, and Market Leadership

Cisco holds a dominant position in the computer networking sector, commanding approximately 76.4% relative to competitors as of the second quarter of 2025. This leadership extends to enterprise networking solutions, where its products are utilized by 98% of companies as of 2023 data, reflecting sustained adoption among large-scale deployments. In fiscal year 2025, Cisco reported over $2 billion in AI-related bookings, underscoring its strategic pivot toward high-growth areas like infrastructure. Industry analysts have frequently positioned Cisco as a leader across multiple categories in evaluations. It earned recognition as a Leader in the for as a Service for the seventh consecutive year, highlighting strengths in vision and execution for cloud-based communication platforms. Similarly, Cisco was named a Leader in the for Data Center Switching, emphasizing its high-performance networking capabilities and simplified management features. In IDC MarketScape reports, Cisco achieved Leader status in Worldwide Enterprise , Worldwide Enterprise Video Conferencing Systems, and Worldwide Enterprise Hybrid Firewall assessments, citing its comprehensive integrations and . Omdia rated Cisco as the market leader in the for Smart Collaboration Devices, scoring highest across all evaluation criteria including and . Cisco also stands out in peer-driven recognitions, being the sole vendor designated as a 2025 Customers' Choice across three Peer Insights markets: Voice, Customer Contact Center , and , based on verified user reviews evaluating deployment ease and support quality. Regarding workplace accolades, Cisco has received multiple Great Place to Work certifications, attributing these to employee-driven initiatives in and purpose alignment. In , Cisco's programs demonstrate industry influence, with over 4 million credentials issued globally to date, covering entry-level (e.g., ) to expert-level (e.g., CCIE) tracks that validate skills in , switching, , and like cybersecurity and . These programs, updated for 2025 relevance, position Cisco as a key educator in IT skills gaps, though their value derives from practical alignment with proprietary hardware and software ecosystems rather than universal standards.

Role in Enabling Global Internet Infrastructure

Cisco Systems, founded on December 10, 1984, by and Sandra Lerner, introduced the first commercially successful multiprotocol router, enabling the interconnection of heterogeneous local area networks (LANs) across multiple protocols and laying the groundwork for scalable wide-area networking beyond early limitations. This innovation addressed the causal need for efficient packet routing in diverse environments, as prior systems like relied on proprietary protocols ill-suited for commercial expansion, allowing internet traffic to grow from academic silos to global commerce by handling TCP/IP alongside legacy protocols such as DECnet and XNS. By the 1990s, Cisco's routers and software became integral to the , powering core for internet service providers (ISPs) and enterprises, with the company's equipment facilitating BGP protocol implementations that managed autonomous system interconnections and prevented explosions as the internet's expanded from thousands to millions of hosts. Under CEO John Chambers from 1995 to 2007, Cisco achieved dominance in high-end , capturing over 80% in core routers during the dot-com era, which empirically correlated with the 's user base surging from 16 million in 1995 to over 400 million by 2000, as verified by backbone traffic logs and deployment data from major carriers like and MCI. Although competition from and others eroded this to approximately 33% in the router market by 2024, Cisco retained substantial influence in and enterprise segments, with overall networking equipment share exceeding 76%, underscoring its enduring role in directing the majority of global IP traffic. Cisco extends its infrastructure enablement to submarine cable systems, which carry 99% of international data traffic, by supplying optical transport platforms like the NCS 1004 for landing stations and wet-side amplification, supporting terabit-scale capacities over transoceanic distances. In February 2024, Cisco collaborated with Microsoft to demonstrate 800 Gbps transmission on the Amitié transatlantic cable, utilizing coherent optics to accommodate exponential cloud and AI-driven bandwidth demands, with real-world deployments reducing latency and costs for intercontinental peering points. These contributions, rooted in empirical advancements in wavelength-division multiplexing (WDM) and space-division multiplexing (SDM), have causally enabled the internet's physical layer resilience, connecting disparate continents and mitigating single-point failures through redundant, high-availability routing fabrics deployed in over 100 countries.

Antitrust and Monopoly Allegations

In 2008, third-party maintenance provider Multiven filed an antitrust lawsuit against Cisco, alleging that the company maintained a monopoly in network equipment maintenance services by conditioning access to software bug fixes, security patches, and technical support on the purchase of Cisco's proprietary SmartNet contracts, thereby excluding competitors and forcing customers to pay supracompetitive prices. The suit claimed this tying arrangement violated Section 2 of the Sherman Act, as Cisco held over 80% market share in core routing and switching hardware, leveraging it to dominate aftermarket services. Cisco defended its practices as necessary for network security and interoperability, arguing that voluntary support contracts ensured reliable updates without third-party risks; the case highlighted debates over whether such policies constituted exclusionary conduct or pro-competitive quality controls, but it was ultimately resolved without a finding of monopolization. A similar pattern emerged in disputes with equipment resellers. In a 2020 countersuit amid Cisco's claims, Dexon Computer alleged that Cisco wielded monopoly power in enterprise networking gear—claiming over 50% share in switches and routers—to coerce customers via "" (FUD) tactics, including threats of service denial or warranty invalidation for buying from unauthorized sellers, which inflated prices and foreclosed competition. Federal courts in and scrutinized these claims, with a recommending dismissal of tying allegations for lack of evidence of coerced bundling, as customers could opt for alternatives without material harm. Dexon voluntarily dismissed its antitrust counts in 2023, leading to a settlement favorable to Cisco that included Dexon's compliance with licensing rules, underscoring the challenges in proving anticompetitive intent amid Cisco's documented investments in proprietary standards. More recently, on May 22, 2025, reseller Summit 360 sued Cisco in U.S. District Court in , accusing it of monopolizing markets for switches, routers, and wireless access points through exclusive dealing, predatory threats against gray-market purchases, and FUD campaigns that deterred customers from non-authorized channels, allegedly preserving Cisco's 40-60% shares in these segments. The complaint invokes Sherman Act violations, claiming Cisco's tactics—such as voiding support for unlicensed gear—have suppressed innovation and raised costs industry-wide, with Summit seeking injunctive relief and damages. Cisco has countered that its policies protect and ecosystem integrity, rooted in decades of R&D yielding standards like IOS software, and that market shares reflect superior performance rather than exclusion; no government enforcement actions have substantiated systemic monopolization, with agencies like the DOJ focusing instead on merger reviews where Cisco's dominance is noted but not deemed unlawful per se. Other claims have arisen in patent litigations, such as ' 2017 countersuit alleging Cisco abused its "near-monopoly" in switching via baseless infringement suits to stifle rivals, violating antitrust laws by leveraging litigation as a barrier to entry. The dispute settled in 2024 with Arista paying Cisco $400 million, without admission of antitrust liability, reflecting courts' reluctance to infer from aggressive IP enforcement in innovative sectors. Similarly, in ChriMar Systems v. Cisco (2013), Cisco's counterclaims were partially dismissed for inadequate market definition, illustrating judicial emphasis on precise antitrust pleading over broad dominance assertions. These private actions, often from resellers or niche competitors, have not yielded monopoly findings against Cisco, which attributes its position to first-mover advantages in protocols like BGP and OSPF, though critics argue channel controls entrench incumbency beyond merit.

Security Vulnerabilities and Government Backdoors

Cisco has faced numerous security vulnerabilities in its networking products, including routers, firewalls, and switches, many of which have been actively exploited by cybercriminals and nation-state actors. For instance, in September 2025, Cisco disclosed multiple zero-day vulnerabilities in its Adaptive Security Appliance (ASA) software and XE, such as CVE-2025-20363, enabling remote code execution and ; these flaws were under active exploitation, prompting CISA to issue an emergency directive for federal agencies to patch affected devices immediately. Earlier, in 2024, Chinese state-sponsored hackers exploited end-of-life Cisco routers to target government networks in the , , and , leveraging unpatched flaws for persistence and . Russian FSB-affiliated actors have similarly targeted using a decade-old SNMP vulnerability (CVE-2017-6742 variant) in Cisco devices, deploying rootkits for . Source code thefts have compounded these risks. In May 2011, Cisco confirmed the theft of portions of its source code, the operating system underpinning many of its routers and switches, with attribution to Chinese hackers by officials; this incident exposed internal algorithms and potentially aided reverse-engineering of exploits. Similar breaches occurred around , involving repeated exfiltration of proprietary code, heightening concerns over compromise and vulnerability development by adversaries. Allegations of government backdoors, particularly involving US intelligence, emerged prominently from Edward Snowden's 2013 leaks. Documents revealed that the NSA intercepted shipments of Cisco routers destined for foreign buyers, implanting tools before resealing and forwarding them, thereby gaining unauthorized access to networks; this "man-in-the-middle" tactic targeted hardware like firewalls, extracting encryption keys for traffic interception over a decade. Snowden specifically alleged NSA backdoors in Cisco products shipped overseas. Cisco denied awareness or cooperation in such interceptions, urging restrictions on NSA practices to restore trust, and emphasized that no evidence linked the agency to built-in backdoors in its . Separate from government claims, independent researchers have uncovered hardcoded credentials and unauthorized access mechanisms in Cisco —termed backdoors by some—such as those in 2018 router software granting privileges, though Cisco classified these as unintended flaws rather than deliberate insertions. These incidents underscore systemic challenges in securing widely deployed infrastructure, where patching lags and supply-chain risks amplify threats.

Geopolitical and Human Rights Disputes

Cisco Systems has faced allegations of complicity in abuses through its provision of networking equipment and customized surveillance technology to the Chinese government, particularly in support of the , a nationwide system known as the "Great Firewall" designed for and monitoring. Initiated in the late , the project utilized Cisco routers and software tailored to enable , content filtering, and tracking of dissidents, including practitioners, , and other targeted groups. Plaintiffs in the 2011 lawsuit Doe I v. Cisco Systems, Inc. claimed that Cisco knowingly assisted the in persecuting these individuals by building and maintaining the infrastructure that facilitated arbitrary detention, torture, and extrajudicial killings, with specific evidence including internal Cisco documents outlining sales strategies that accommodated Chinese requirements. The U.S. District Court for the Northern District of California initially dismissed the case in 2014, citing the political question doctrine and determining that adjudicating Cisco's role would interfere with U.S. foreign policy on exports. However, the Ninth Circuit Court of Appeals reversed key aspects in July 2023, holding that plaintiffs adequately alleged aiding and abetting liability under the Alien Tort Statute (ATS) if Cisco provided purposeful assistance with knowledge that it would substantially support the abuses, and that the claims did not pose a nonjusticiable political question. Cisco has maintained that its sales complied with U.S. export controls under the Export Administration Regulations and denied any direct involvement in human rights violations, arguing that equipment was standard commercial hardware not uniquely enabling persecution. The case remains ongoing, with Cisco petitioning the U.S. Supreme Court in 2024 for review, emphasizing that allowing such suits could undermine executive branch authority over international trade. Geopolitically, these disputes highlight tensions between Cisco's commercial interests in the Chinese market—where it generated significant revenue through early infrastructure deals—and U.S. concerns over transfers enabling authoritarian . Congressional hearings in the criticized U.S. firms like Cisco for contributing to 's controls, which suppress and enable mass monitoring, contrasting with Western democratic norms. In response to escalating U.S.- rivalry, Cisco has diversified away from , reducing operations there by over 20% since 2019 amid sanctions and shifts, though legacy equipment persists in Chinese networks. More recently, in 2024, current and former Cisco employees filed complaints with U.S. and labor agencies, alleging the company unlawfully suppressed internal dissent over sales of networking gear to , claiming it supported military operations in Gaza amid humanitarian concerns. Cisco reportedly halted a urging restrictions on such sales and disciplined participants, prompting accusations of violating whistleblower protections under the National Labor Relations Act. These internal conflicts reflect broader employee activism on geopolitical sales but have not resulted in formal external findings against the firm.

Employee Relations, Diversity Claims, and Internal Dissent

In 2024, Cisco implemented multiple rounds of layoffs affecting approximately 9,000 employees, representing about 12% of its global workforce, as part of broader efforts amid economic pressures and a shift toward AI investments. Further cuts occurred in August 2025, impacting over 200 positions across roles from junior engineers to vice presidents, following CEO ' earlier denial of AI-driven job reductions. These actions drew employee for inconsistent communication and severance packages perceived as inadequate relative to , including Robbins' reported $50 million bonus. Cisco faced a high-profile filed by California's Civil Rights Department in June 2020, alleging that the company and two Indian-origin managers discriminated against an Indian-American engineer from a lower background, resulting in denied promotions, project reassignments, and harassment from 2015 to 2018. The suit claimed Cisco's internal investigations dismissed as a protected category under U.S. at the time, allowing the issues to persist; while some individual claims were dismissed in 2023, core allegations of remain in litigation as of 2025. A related 2017 court ruling rejected Cisco's attempt to force an age-discrimination claimant into , highlighting tensions in handling employee disputes. On (DEI), Cisco committed in 2020 to increasing Black executive hires by 75% following shareholder pressure and a alleging breaches for insufficient board racial diversity, though the was dismissed in 2022 for lack of of to shareholders. CEO Robbins defended DEI in January 2025 as essential for business performance, citing internal metrics on innovation from diverse teams, yet critics, including shareholder inquiries, noted Cisco's inability to quantify (ROI) for its DEI programs, raising questions about empirical justification amid broader tech sector scrutiny. Internal has surfaced through whistleblower actions under the False Claims Act, including a 2019 settlement of $8.6 million resolving claims that Cisco knowingly sold flawed video surveillance software with cybersecurity vulnerabilities to government clients, with the whistleblower receiving approximately $1.6 million as a statutory share after a decade-long legal process. Another involved a 2010 settlement of $48 million with distributor Westcon for defective pricing in GSA government contracts, also stemming from a whistleblower suit under the FCA yielding a statutory reward after extended litigation. In October 2025, a former manager at a Cisco alleged and retaliatory termination for raising irregularities, underscoring ongoing concerns over internal . Employee peaked in 2024 amid the Israel-Gaza conflict, with reports of nine current and former staff claiming Cisco marginalized pro-Palestinian voices, including suppressed internal forums and selective enforcement of conduct policies favoring pro-Israel perspectives.

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