Cisco Replaces John Chambers with Chuck Robbins as CEO (Part 2 of 2)
Chuck Robbins makes an impression with Cisco growth projects
In the first of this two-part series, we discussed Cisco’s (CSCO) announcement that John Chambers will be replaced by Chuck Robbins as CEO of the company. Robbins has been with Cisco for 17 years. During his tenure, he’s been involved in a number of strategic projects. Recently, he served as senior vice president of worldwide operations. He led Cisco’s global sales and partner program team. According to the company, the partner program contributes more than $40 billion to Cisco revenues.
Robbins involved in Meraki and Sourcefire acquisitions
Robbins has supported the collaboration and security business at Cisco. He was also involved in Cisco’s acquisitions of Meraki and Sourcefire.
Cisco acquired Meraki in November 2012 for $1.2 billion to grow its wireless business. Meraki technology provides a means to control Wi-Fi networks through the cloud. As the chart above shows, Cisco’s year-over-year revenue growth in its wireless segment has accelerated over the last few quarters, courtesy of Meraki.
The wireless market is becoming more competitive by the day. According to a report from IDC (International Data Corporation), Cisco, Aruba, Ruckus Wireless (RKUS), and HP are the top four players in the enterprise wireless local area network market.
Recently, HP (HPQ) acquired Aruba Networks (ARUN) for $3 billion. Aruba makes Wi-Fi network systems for enterprises, hotels, and universities. Since acquiring Aruba, HP has become an important player in the enterprise wireless network market, heating up the competition for Cisco.
Robbins was also involved in Cisco’s acquisition of Sourcefire . Cisco acquired the company in July 2013 for $2.7 billion to strengthen its position in the network security market.
If you’re bullish about Cisco, you could invest in the PowerShares QQQ Trust, Series 1 (QQQ). QQQ invests about 2.8% of its holdings in Cisco.
For more on Cisco, please read Why Cisco’s Stock Increased by 10% in February .
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