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Huawei and Cisco’s Source Code: Correcting the Record

Last week, I wrote about statements made by Charles Ding, Huawei’s Senior Vice President and Chief Representative in the U.S., Mr. Ding explained the 2003-2004 intellectual property litigation between Cisco and Huawei as follows: “Huawei provided our source code of our products to Cisco for review and the results were that there was not any infringement found and in the end Cisco withdrew the case . . . the source code of the issues was actually from a 3rd party partner that was already available and open on the internet.”

In my blog, I let Huawei and Mr. Ding know that Cisco would waive any confidentiality provisions from that litigation  so the world could learn what really happened and suggested they publish the expert’s report from the litigation.   Huawei and Mr. Ding have so far ignored my offer.  Under the agreement that resolved the litigation, we are entitled to act on our own, so we now do so.

Two things are clear about the Cisco – Huawei dispute:

  • The litigation was between two private companies, not between governments. It’s not about the US or China and we respect the efforts the Chinese government is making to increase intellectual property protection.  Rather, this dispute involved a very simple claim that one company used the other’s trade secrets and copyrighted materials without permission.
  • Unlike the smartphone patent battles, where parties try to protect and grow their market share by suing each other over broad patents where no direct copying is required, let alone even knowledge that a patent exists, this litigation involved allegations by Cisco of direct, verbatim copying of our source code, to say nothing of our command line interface, our help screens, our copyrighted manuals and other elements of our products.

The agreement that ended that lawsuit allows either party to make a reasonable response to improper or impermissible statements by the other.  Mr. Ding’s statements of two weeks ago indeed misstate the facts and therefore merit a direct, factually accurate and proportionate response. Rather than providing Cisco’s interpretation of the facts, we think it better simply to set forth the facts themselves.  To that end, the following are verbatim excerpts from the Neutral Expert’s Final Source Code Report, dated June 15, 2004:

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The CDN Federation: Spreading Benefits Across the Web-Video Value Chain

Whether driven by live sports or blockbuster movies, the explosive demand for Internet video keeps rising. Increasingly, consumers want it all, and they want it on any device, at any time. Indeed, by 2015, Cisco projects a quadrupling of IP traffic, 90 percent of which will be video.

This is an exciting trend, for sure. But headaches abound, up and down the value chain. For service providers (SPs), this torrent of web content places an undue burden on the network. And SPs gain little in revenue, since over-the-top content providers often outsource the distribution of their material to pure-play content delivery network (CDN) companies. Meanwhile, the content providers—who increasingly charge consumers for their offerings—fear that they may not be able to maintain standards of quality. As for those paying customers? They want their video now, and they expect it to stream perfectly.

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Unlocking the power of mobility: The right technology, culture and process

Freedom brings risks and rewards. And, that is certainly true when it comes to mobility for most organizations. Mobility unleashes our ability to communicate, collaborate and innovate across geographies. These rewards, however, come with security, policy and network management challenges. Not a day goes by that I don’t hear this first-hand from customers, partners, and providers as they think through the issues associated with bring your own device or “BYOD”.

And with more sophisticated mobile devices entering the consumer market, the BYOD trend will only accelerate. As 44% of workers use three+ devices for work each day, our customers now recognize that they need to think beyond the device and address the issues of secure data access and network management. Their challenge: how to “lock it down before they free it up.”

A recent global survey commissioned by Cisco from the Economist Intelligence Unit, Secure Data Access in a Mobile Environment, questioned 578 senior executives on the current and ongoing challenges stemming from increasing trends toward worker and user mobility, and how this has shaped company BYOD practices and policies. The respondents represented several different industries, with major ones including IT and technology (13%), financial services (11%), professional services (11%) and energy and natural resources (9%). Overall, the results found that although manyexecutives are uneasy about the security of corporate information on mobile devices, the trend is largely unstoppable and proper policies must be initiated to underpin access to this sensitive information.

In my new role as head of worldwide sales for Cisco, I oversee a distributed team of highly mobile professionals around the world who require the ability to “work their way” regardless of location, so I can relate to the challenges our customers are facing when it comes to managing the influx of personal mobile devices. Below are a few key findings from the survey, which are consistent with what I’m hearing from our customers:

  • Most executives are still uneasy about their companies’ mobile data-access policies.
  • 42% say that C-suite needs secure and timely access to strategic data, yet, only 28% believe it’s appropriate to access this from mobile devices.
  • 49% say the complexity of securing multiple data sources and a lack of knowledge about mobile-access security and risk are top challenges for their companies.
  • Larger companies are most willing to allow mobile access to critical data, but also impose stricter rules
  • 47% of companies with revenue under $500m permit access on personal devices with policies that are more informal.
  • Over 90% of companies with over $1b revenue allow access to data via personal and company devices and have written and enforced security policies.
  • BYOD requires that companies take a fresh look at how they attempt to control devices and use. And importantly, mobile policies must not neglect social networking.
  • There is a gap in what is stated and what is allowed; 56% of respondents have policies for acceptable use of social networks on mobile devices, yet, 33% of the executives are restricted from discussing work on these platforms.
  • With an influx of devices, available infrastructure is the key influence on company policies around mobile access.
  • 60% cite IT infrastructure requirements as the primary influence on policy around security and security related to mobile access

It’s clear from the survey findings that each new opportunity to further connect and engage employees brings with it a corresponding set of challenges. Social media will become a critical component in the world of BYOD, as multiple devices necessitate collaboration technologies that must work in tandem. Tools will also have to become adaptive, as social applications begin to overlay with collaboration technologies. Additionally, mobile applications will begin expanding into the mobile workforce, creating further implications for those working outside the firewall.

With this in mind, the creation of a collaboration strategy that integrates  the right technology, the right culture and the right processes is key to unlocking the power of mobility. On the technology front, we know that devices are only as useful as the connections they have, which makes an intelligent network more critical than ever before.

At Cisco we’re committed to helping you address the challenges associated with BYOD so that you can enable your employees to work where and how they want, securely. I would encourage you to check out the full EIU report here, and then learn how Cisco and our partners can help you build a unified workplace strategy at www.cisco.com/go/yourway.  Let me know your thoughts on the survey and how Cisco can help your business. We’re only just beginning to see how mobility will transform the enterprise and Cisco is excited to lead the way.

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ANZ and Cisco are ‘Banking on Australia’

Last week one of Australia’s largest banks, ANZBank, as part of its super regional strategy announceda $1.5 billioninvestment in technology to make it easier for customers to bank with ANZ while also simplifying the way the bank does business. The investment includes a wide range of initiatives including a major refurbishment of 46 bank branches, an Australian first banking app, mobile wallet technology and 800 next generation ATM’s.

In its continued commitment to support local and regional communities, ANZ Bank announced it will roll out Cisco TelePresence to 43 remote branches across Australia, giving regional customers far greater access to specialist advice.

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Cisco Acquires vCider

Cisco is pleased to announce that it has acquired privately-held vCider. Based in Mountain View, California, vCider has expertise in the development of virtual network overlay technology for secure data center infrastructure. vCider will be integrated into Cisco’s Cloud Computing organization, reporting to Lew Tucker, chief technology officer, Cloud Computing, and will play an important role in the Cisco Open Network Environment (ONE) strategy, particularly in support of OpenStack.

OpenStack is a key pillar of Cisco’s open, multi-hypervisor, multi-stack Cloud computing strategy. Cisco joined OpenStack 18 months ago and has been a significant contributor to the OpenStack Quantum API track ever since.

With Quantum becoming a core OpenStack service, it’s clear that programmable networking is quickly becoming an important component in large scale, multi-tenant, cloud computing environments. Cisco’s Quantum plug-in is designed to give application developers increased programmability of both virtual and physical networks linking the world of cloud computing to the advanced capabilities of Cisco’s Open Networking Environment (ONE).

So where does vCider come in? The vCider team has created a multi-tenant distributed virtual network controller. vCider’s code and technology will be integrated into our current development efforts of the OpenStack Quantum network service.

Mergers and acquisitions along with investments remain a key part of Cisco’s build, buy, and partner innovation framework and supports our strategy of providing best-in-class solutions for our customers. The vCider acquisition is well-aligned to our strategic goals to develop innovative virtualization/cloud technologies, while also cultivating top talent.

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