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Chambers on network technologies
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November 12, 2001: 3:22 p.m. ET
Cisco CEO demonstrates new mobile networking technologies at Comdex.
By Staff Writer Richard Richtmyer
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LAS VEGAS (CNN/Money) - Cisco Systems CEO John Chambers demonstrated a slew of innovative mobile networking technologies during a keynote address at the Comdex trade show here Monday and said advanced network applications will be critical for companies that want to benefit from the next wave of Internet growth.
"One of the cornerstones of what I believe will be the future is wave after wave of applications," Chambers said.
Corporations across virtually all industries will need to key in on developing applications that will enable them to create what he called "networked virtual organizations" that are made up of a combination of networking hardware and software applications that can provide remote access to employees and innovative services to customers.
Cisco (CSCO: up $0.04 to $19.24, Research, Estimates), a top provider of the hardware used to route traffic over the Internet, is eyeing the potential for its own growth in supplying the hardware used to provide high-speed Internet access. In addition to its core router business, Cisco recently has been sharpening its focus on products for digital subscriber line (DSL) access, virtual private networking (VPN), wireless local area networking as well as others.
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Cisco Systems CEO John Chambers demonstrates a slew of innovative mobile networking technologies at this year's Comdex. | |
The company made a series of announcements in conjunction with Chambers' address at the trade show, which this year has been marked by lower attendance and tighter security.
Among Cisco's announcements were its new Aironet 350 Series wireless local area network (LAN) solution; a global alliance with IBM to enable business-class mobility for professionals who are working on the road and at home; and a new customer, Fairmont Hotels & Resorts, Inc, which is expected to outfit 100 percent of its properties with high-speed Internet access in guest rooms and conference facilities by early 2002.
Earlier Monday, Chambers told Reuters he expects Cisco to "gain more market share during this economic slowdown than we ever have" and post cash growth proportionate to that of the industry.
During his keynote presentation, Chambers unveiled a number of networking technologies, most of which remain in the conceptual stages, that would bring high-speed, remote Internet access into virtually every aspect of a person's daily life.
Beginning with a demonstration of wireless networking technology using the 802.11 wireless LAN standard that is currently available in places such as coffee shops and airports, Chambers walked through a series of other technologies, including "proof of concept" demonstrations of technologies he believes will become pervasive in the next phase of the development of the Internet.
"We're talking about changing every aspect of our lives," Chambers said.
Among the software technologies he touted was a Cisco application that enables VPN connections to corporate networks through publicly accessible networks such as those in coffee shops. He also showed off the Cisco "IP Softphone," which enables users to make and receive telephone calls over the Internet.
The emerging technologies he demonstrated included a networking device that enables local area networks to receive high-bandwidth data, video commercials for example, and transmit that data wirelessly to monitors within their wireless LAN. He also demonstrated an Internet jukebox, where a broad range of music is stored on a network server and delivered via a high-speed Internet connection.
Perhaps the most impressive demonstration of Chambers' vision of the next wave of the Internet was a Web-enabled car that, using a combination of global positioning system and Internet technology, offers
functionality such as finding local services and making advance orders; accessing certain controls of the car, such as the door locks, from a remote location over the Web; and automatically finding local auto service providers when there's mechanical trouble.
Of course, all of this will require additional investment in the technology that makes it work. And in the face of a slowing and uncertain economy, most major corporations and service providers have substantially scaled back their spending on IT equipment.
"Make no mistake about it, what is driving this Internet revolution today is profit and cash flow," he said. "From a business perspective, if you show people how they can produce profits and cash flow, they're going to make the investments."
Last week, Cisco, whose stock is one of the most closely-watched and widely-held, reported a fiscal first-quarter operating profit and revenue rose from the previous quarter, earning $332 million on $4.45 billion in sales. 
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