The current below than expected market performance of Cisco Systems, Inc. (NASDAQ:CSCO) has forced the board of directors to take strong decisions. As per the reports, John Chambers, CEO of Cisco Systems has decided to step down after 20 long years. Chuck Robbin, 49, will replace him as the new Chief Executive Officer of the company.
From Silicon Valley Sensation To Struggling For Survival:
Cisco has seen the lime light and enjoyed true success for years. During early 2000s when dotcom boom took over the world, Cisco became the sensation of the share market. The market cap of the company reached $600 billion on the basis of diluted share count in March 2000.
The present CEO John Chambers has been in the senior leadership for the last twenty years and has seen the early success that Cisco Systems, Inc. (NASDAQ:CSCO) witnessed during the dot-com boom. Cisco’s present market cap is not more than $150 billion, which is a clear evidence how swiftly it has come down.
The world has come far from the dot-com trend. The next big thing in today’s time is cloud computing, but unfortunately Cisco Systems hasn’t been able to live up to clients’ expectations. It is badly struggling to boost the bottom line now. Chambers has tried different tactics by acquiring companies, diversifying offerings and all sorts of steps to bring the company back on track, but things haven’t fallen in line.
He has been planning to step down from his position for the last three years and thinks that it’s the perfect time to do so. According to him, Robbin is an execution machine and is capable of taking the company out of this troublesome situation. Robbin joined Cisco in 1997, but it’s the first time he has been given a place on the board. It will be great to see if he can take Cisco to the heights it belonged once.