Cisco Touts Network Architecture Strategy, Dividends

Many large tech companies field complaints from investors because they possess a mountain of cash but don’t pay dividends to shareholders. Although details remain unclear, Cisco plans on changing that.

Cisco has a plan to continue to grow its enterprise IT footprint and it’s one that will literally pay dividends to Cisco shareholders.

At Cisco’s (NASDAQ: CSCO) financial analyst meeting Tuesday, CEO John Chambers outlined his company’s strategy and direction as it continues to build out both its network routing and switching business as well as grow into emerging new areas like telepresence and smart grid.

Chambers highlighted the fact that over the last year Cisco has introduced over 400 new products across its various market segments. Chambers stressed that Cisco is pursuing an architectural play as opposed to competing on just a product by product basis. It’s a strategy he said he expects will continue to help the company differentiate versus competitors.

“We have a little bit of an issue with latency, a bit of an issue with the high-end security firewall capability and a little bit on load balancing or application acceleration,” Chambers told analysts. “If that’s all you got that you’re really worried about product-wise and your products actually work together, where each of your competitors only have one or two products — I can sell that to any CIO in the world.”

Read the rest at Enterprise Networking Planet.