Cisco powers through recession, bets big on video

By Jon Swartz, USA TODAY

LAS VEGAS — Flanked by a coterie of gadgets in a private suite at the USA's biggest consumer electronics show, Cisco Systems CEO John Chambers might seem like the proverbial fish out of water.

Yet the leader of the computer-networking giant had delivered a keynote speech at the Consumer Electronics Show last week and was outlining its consumer plans.

It's all part of Cisco's audacious gambit to plunge into new markets, spend billions to snap up companies and partner with others,despite a sour economy.

"We were never more aggressive than we were last year, during one of the worst economic crises we have ever seen," Chambers said in an interview with USA TODAY.

He predicts 12% to 17% annual growth for Cisco in the next five years, regardless of the economy. "You never want to waste a good crisis," he says.

Chambers — and Cisco (CSCO) — seem to be everywhere.

Last week, it was the sprawling CES in Las Vegas. In September, he was in New York, speaking on education reform in the U.S. That same month, he rubbed shoulders with NFL Commissioner Roger Goodell and Dallas Cowboys owner Jerry Jones at the team's $1.2 billion palatial stadium. Cisco is technology partner at the stadium.

In April, Chambers addressed leaders of General Electric and Florida Power & Light in Florida about a smart-grid project. And he has frequently huddled with the Obama administration on the use of technology in the $787 billion stimulus package.

A buoyant Cisco is even planning a new hardware-software platform — the Cisco Unified Computing System — in pursuit of the multibillion-dollar business for equipping thousands of data centers run by corporations.

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