I would like to bring a blog entry from Alan Cohen to your attention on Mother’s Day and Mother Earth. Alan is our peripatetic Vice President of Enterprise Solutions. One day you might find him commenting on the Sports Museum of America…the next, he might be interviewed by InformationWeek on Unified Communications, and on another, he might be be at the NBA All-Star game in New Orleans.In his Mother’s Day blog entry, he writes about Mother Earth, and states:
“Climate change is not a fashion issue: it is a boardroom issue. Increasingly we see environmental responsibility taken seriously. Businesses, consumers and service providers of all sizes are driving behavioral change to protect the environment. Tightening environmental regulations accelerate this trend.”
I invite you to read his blog entry on climate change and Mother Earth and the part Cisco plays.
On Thursday May 8 a blog entry posted on Network World accused Cisco of a practice known as”channel stuffing” based on the financial information we presented in our Q3 FY ’08 earnings call. Given this serious and inaccurate claim, Cisco felt it was important to present some detailed facts that refute these allegations. First, Cisco employs conservative policies regarding revenue recognition. For example, in our distribution channel, Cisco does not recognize revenue until product leaves our channel partner, effectually removing any possibility of recognizing revenue before it’s sold to the end customer. Second, as we said on our quarterly call,”-Q2 and Q3 include the effect of several large multi-year service agreements, which has increased the DSO (days sales outstanding) in each quarter by three to four days.” This would be sufficient to increase accounts receivable if recorded at the end of the quarter and is not related to inventory or channel partners. Finally, it’s important to put the scope of the amount in question in proper context. From a financial perspective, $20 million represents 0.2% of our Q3 FY ’08 sales, which were $9.8 billion. Cisco has always acted openly and transparently in disclosing financial information, a fact consistently recognized by the investment community.Post by Terry Alberstein, Director, Corporate Communications
Statement by Bruce Klein, VP of Federal Sales, and Phil Wright, Director, Brand ProtectionAs you may have read, the FBI has identified a number of unauthorized companies that have sold products with the Cisco trademark to various government agencies and other organizations. This is of major concern to us, and we wanted to take a moment to share the efforts we are taking to ensure only legitimate Cisco products end up in the hands of our loyal customers.Unfortunately, counterfeiting is not a new issue in the IT industry or indeed in any successful global enterprise. Because our customers expect and deserve the highest-level of satisfaction when purchasing Cisco products, we actively monitor the counterfeit market and have longstanding processes in place to address this challenge.As part of our commitment to the integrity and quality of Cisco technology and services, our Brand Protection team leads an aggressive, concerted and company-wide effort to prevent potential damage to our brand and to our customers as a result of counterfeiting. Because counterfeiting is a criminal activity, we work closely with law enforcement agencies worldwide whenever those agencies decide to take action against those who would profit by this illegal conduct. In this instance, Cisco has collaborated with the FBI and other Federal law enforcement, and we appreciate their hard work in this important area. We have participated in many aspects of the investigation, and have proactively briefed high-level individuals at multiple government agencies.So what can you do? We can’t stress enough the importance to Cisco customers and channel partners of procuring equipment only from Cisco authorized channels. If you have any questions or concerns I would recommend calling your Cisco representative or authorized reseller immediately.Again, we appreciate the hard work by the FBI in this case as well as the efforts by all law enforcement agencies in cracking down on the counterfeit market. This is a serious issue that we are diligently fighting every day to ensure our customers receive only genuine Cisco products.
Cisco is pleased to be recognized by the Service & Support Professionals Association (SSPA) for its innovative Cisco Smart Call Home service capability which was awarded a 2008 SSPA STAR Award for Best Practices in the category of”Best Embedded Product Support”. See press release here.Beyond helping customers with technology roll-outs, Cisco also helps customers operate their Cisco solutions throughout their lifecycle and this award recognizes the innovative approach we’ve taken with Cisco Smart Call Home. Unique in the networking industry, Smart Call Home offers proactive diagnostics and real-time alerts on Cisco devices that can automatically engage TAC in potential issues and determine resolution steps by the time network administrators are even aware there is a problem. The Smart Call Home service capability is embedded today in the Catalyst 6500, MDS 9000 and 7600 with support for many other Cisco devices over the next 12 months.SSPA is the largest and most influential industry trade group for technology service and support professionals with nearly 200 member companies globally (www.thesspa.com). Smart Call Home is a Cisco service capability available as part of Cisco’s SMARTnet service. Post by Linda Horiuchi, Cisco PR Manager
You may have seen the news that Jayshree Ullal, senior vice president of our Data Center, Switching and Services Group (DSSG) is leaving Cisco to pursue new professional opportunities. With Jayshree’s departure, John McCool will assume leadership of DSSG reporting directly to John Chambers. McCool will also assume Jayshree’s position on Cisco’s Development Council.Jayshree has been at Cisco for 15 years and has made many lasting contributions to the company. She has held numerous senior and strategic roles at Cisco and pioneered Cisco’s entry into many new markets, including Ethernet switching, unified communications, high-end routing, optical, security and data center innovation. Jayshree’s contributions to the networking industry and the respect she garners across the organization ensures that she will always remain part of the extended Cisco family.We wish you the best of luck, Jayshree…you will be missed.Post by Elizabeth McNichols, Director, Corporate Communications