At the core of our company’s values is a simple concept: make Cisco customers successful. We have a vigorous process for measuring customer satisfaction and success, and conduct constant analysis of the competitive advantage they can achieve by using our technology solutions and services. This ongoing focus is designed to anticipate our customers’ business needs today, as well as in the future.
Cisco has been working with individual customers on an issue related to memory components manufactured by a single supplier between 2005 and 2010. These components are widely used across the industry and are included in a number of Cisco products. They are known to slowly degrade over time, and in some cases, have caused products to fail after being turned off and on.
The majority of Cisco products using these components are experiencing field failure rates below expected levels. Recently, however, a handful of our customers have experienced a higher number of failures, leading us to change our approach to managing this issue.
Despite many of these products being out of warranty, Cisco has decided to take a charge of $655m related to the expected cost of managing these issues. We are taking this action to support our customers and partners. This charge was excluded from our non-GAAP financials, as we do not believe it is reflective of ongoing business and operating results.
Our goal to become the world’s #1 IT provider is built on providing a superior experience for our customers in every aspect of working with Cisco. We believe our approach to this industry-wide issue is the best course of action for our customers. Despite the cost, it reiterates that we place their success above all else.
As always, we encourage our customers to contact the Cisco Technical Assistance Center (TAC) if they experience a failure in any Cisco product. If you have additional questions about this process, we recommend reviewing the additional updates at www.cisco.com/go/memory.
We’re pleased to announce today that we’ve achieved full protection for millions of Cisco customers from the overblown and specious claims of a very aggressive patent assertion entity.
Once upon a time a company called “Innovatio” set out to force retailers and small businesses to pay over two thousand dollars per location for use of WiFi patents. They did this knowing they were obligated to license the patents under reasonable and nondiscriminatory terms and, even worse, that the majority of the businesses they were targeting were already licensed to use the patents. Innovatio targeted over 170 million Cisco devices that Innovatio claimed could be taxed by their scheme. They sent over 14,000 letters in the first wave of an attack through which they hoped to eventually suck close to $4 billion out of the productive part of the U.S. economy by threatening innocent entrepreneurs with costly litigation.
We, together with Netgear and Motorola, intervened on behalf of our customers and accused Innovatio of running a racket, and we demanded a trial on the true value of those patents. We also demanded damages for the breach of the contractual obligations to license standard-essential patents on fair terms. Although Chief Judge Holderman in the Northern District of Illinois did not allow the racketeering claim to move forward, he determined that the patents had a collective value of approximately 10 cents per WiFi device. “Innovatio” later admitted that over 100 million of the devices they targeted were already licensed, and taking into account our strong breach of contract and other claims, they agreed to license the remaining 85 million devices for a total of $2.7M, or less than 3.2 cents apiece.
How time flies: Cisco and Intel are celebrating their one-year partnership anniversary of Unleashing IT with the launch of the all new, Spring 2013 edition. Available online and in print, this latest installment is once again packed with thought-leadership content and company profiles.
Over the past year, Unleashing IT has uncovered and shared many IT best practices. The industries represented through the company profiles featured are extremely diverse, as are their solutions and deployment strategies.
But there is a common thread -- they are all are leveraging data center technology to advance, accelerate and streamline their business, enter new markets, all while achieving substantial cost savings. From education to healthcare to utility companies, innovation in the data center is driving their success -- and allowing them to keep up with demands of the business.
Perhaps you will find inspiration from these profiles, sparking new ideas -- and allowing you unleash the full potential of IT for your business.
Today, marks an important milestone in the history of routing, as Cisco introduces ISR-AX (Integration Services Router Generation 2 with Application Experience) and redefines the role of the router as the application delivery platform.
Quintiles – a biopharmaceutical in Durham, North Carolina – has experienced, first-hand, the benefits of an application aware router. They have successful rolled out VDI to thousands of users globally with key services of ISR-AX, namely Cisco Wide Area Application Services (WAAS). With this solution, they have been able to onboard new acquisition employees within days instead of months, and dramatically increase productivity.
HDR – an Omaha, Nebraska-based architecture and construction firm – also relies on application services integrated on the router to guarantee application performance. HDR runs several mission-critical engineering applications worldwide, which are latency sensitive and transport over 10 terabyte files. They depend on the Cisco Application and Visibility (AVC) services available on the ISR-AX to provide a high quality of experience and resolve issues in a matter of minutes and minimize downtime. Read More »
Guest Blog by Sarah Evans, Social Media Correspondent
Sarah Evans (@prsarahevans) is the chief evangelist at Tracky and owner of Sevans Strategy, a public relations and new media consultancy. She’s the author of new book, [RE]FRAME: Little Inspirations For A Larger Purpose (published by SlimBooks). It’s her personal mission to engage and employ the use of emerging technologies in all communication that connects her with a rapidly growing base of more than 120,000 people. A “for good” advocate, Sarah worked with a local crisis center to raise more than $161K in three weeks via social media and is a team member of the Guinness Book World Record holding #beatcancer. Sarah can be seen in Vanity Fair’s Americas Tweethearts, Forbes’ 14 Power Women to Follow on Twitter and Entrepreneur’s Top 10 Hot Startups of 2010.
For the past few days I’ve had the privilege of serving as entertainment services provider Cox Communications social correspondent at the 2013 Consumer Electronics Show (CES) and working very closely with the Cisco team promoting the personal TV experience. TV is everywhere at CES. And it’s right on par. Nielsen says that Americans are actually watching more TV than ever – about 34 hours per week, in fact.
Cox and Cisco have been working very closely this week with joint announcements on the personalized television experience. Working with Cisco, Cox evolved their video services platform to deliver more personalized video experiences, offering their customers more of what they enjoy. While Cox customers have been able to watch 90 channels of live, linear TV on an iPad for more than a year now, this new app – powered by Cisco’s Videoscape Unity software and technology – expands the service to iPhones and iPods, adding significant improvements in navigation. Learn more about the announcement here.
It’s hard to miss the focus on hardware at CES, specifically on size and sharpness. However, I think the real story about TV at CES is what’s happening on the backend. And what’s the big innovation? The personalization, synchronization and socialization of video, with personal on the forefront.
To keep the buzz around TV going I moderated a #CoxCiscoTV Twitter chat to talk more about the idea of #PersonalTV with Cox Communications and Cisco executives. Our Twitter lineup was made up of:
Len Barlik, EVP of Product Development, Cox Communications (@Cox_PR)
Martin De Beer, SVP of Video and Collaboration Group, Cisco, (@MartinDeBeer)
Nick Thexton, CTO, Service Provider Video Technology Group, Cisco, (@CiscoSPVideo)