Cisco Reorganizes Business Structure, Operations Around Key Network, Internet Growth Areas

Vendor streamlines sales, services and engineering units to focus on routing, switching and services, collaboration, data center virtualization and cloud, video and architectures.

Cisco Systems Inc. said last week that it will reorganize and streamline its sales, services and engineering organizations to concentrate on key areas it believes are steering networking and Internet growth in a move to simplify its operating model and upgrade its relationships with customers, partners and employees.

The vendor said that the new structure will enable it to home in on routing, switching and services; collaboration; data center virtualization and cloud computing; video; and, architectures, areas it identified as drivers of growth in networking and the Internet.

Most of the organizational and functional changes will be in place in the next four months, officials said.

"Cisco has driven transformational change before, and we are again transitioning to the next stage of the company's evolution," said John Chambers, Cisco chairman and chief executive. "Today, the market is driving toward simplification and it's why the network matters,” he said.

“Our role as the leading network platform provider is strong, we have great customers, talent and expertise—and we know how to bring innovation to every aspect of the network,” said Chambers. “It's time to simplify the way we execute our strategy, and today's announcement is a key step forward," he said.

Cisco said that it will segment its worldwide field operations into three geographic regions, namely the Americas; Europe, Middle East and Africa (EMEA); and Asia Pacific, Japan and Greater China. The company suggested that the speed of its decision making, accountability and alignment will improve under the new structure.

Each region will manage its own business and offer dedicated teams for large enterprise, public sector, commercial and small business, service provider and Cisco’s channel partners, officials said.

Robert Lloyd will stay on as executive vice president, worldwide field operations, Cisco said. He was named to that position in April, 2009.

The new sales structure will be operational by the end of its fiscal year in July, 2011, Cisco said.

Cisco also said that it will organize its services operation around key customer segments and delivery models to map to field operations. Gary Moore, Cisco executive vice president and chief operating officer, will continue as head of the services group, the company said. Moore was named to the COO position only this past February.

The company also said that it will alter its engineering organization to map to the five priority areas, co-led by Pankaj Patel, Cisco senior vice president, and Padmasree Warrior, Cisco senior vice president. Engineering will continue to report to Moore, Cisco said.

A new business group within engineering dedicated to emerging business, headed by Marthin De Beer, Cisco senior vice president, will focus on select early-phase businesses with attention to integrating Cisco’s Medianet video architecture across the company.

Cisco also said that it will redirect its Councils--which the vendor uses to map strategy to execution across functional groups and reinforce a consistent speed-to-market and customer approach--to three main business areas—enterprise, service provider and emerging countries.

"Our five company priorities are for a reason—they are the five drivers of the future of the network, and they define what our customers know Cisco is uniquely able to provide for their business success,” said Moore. “The new operating model will enable Cisco to execute on the significant market opportunities of the network and empower our sales, service and engineering organizations," he said.

Cisco said that the sales and engineering organizations will be provided with resource allocation and profitability targets, and maintain direct responsibility and accountability for business results.

TAGS: Cisco,sales,service,engineering,reorganization

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