What Chambers is talking about is the Chinese market.

"Although I am not a very patient person, I am very patient in this matter." "This thing in chambers" refers to the Chinese market.

A few days ago, Cisco Global President Chambers accepted the "first financial daily" and other media interviews, reiterated his patience with the Chinese market, because Cisco is in the global market challenges, and China's challenges are particularly obvious.

Globally, Cisco is entering a new transition from a hardware vendor to a "Software + Service" vendor, and in China, like other large IT companies, Cisco has been affected by the Prism gate event.

As Chinese state-owned companies began delaying orders, including large machines and servers, IBM's revenue in China fell by 22% in the third quarter, while Cisco's revenue in the Chinese market slipped 18% in just the first quarter of its financial year 2014.

"In China, we have to deal with challenges and focus on market transformation," he said. Sometimes it's easier, as it was three or four years ago, and sometimes it's very difficult, as it is now. "China today accounts for less than 5% of our total business, but from now on, it should be a 10%~15% in seven or eight years," Chambers said with confidence. ”

Responding to security challenges

Chambers still remember the first time he came to China 30 years ago: The airport's only conveyor belt was bad, with almost no cars on the road and hundreds of bicycles on both sides.

"If I am not an American, I want to be a Chinese." Chambers once again reiterated his previous statements on several occasions, and from a personal standpoint, Chambers has deep feelings for China.

Before joining Cisco in 1991, Chambers had worked for Wang Computer, whose founder Wang had deeply influenced him in many ways, and Chambers was the only non-Chinese person in charge of the Asia-Pacific business of Wang Computer, including China, for his knowledge of Chinese culture. Today's chambers can read Chinese well.

But Cisco's business in China has been a challenge. Cisco's revenue in the Chinese market grew by 11% and 17% respectively in fiscal year 2011 and fiscal year 2012, but was affected by a slowdown in the economy, which slipped 5% per cent in 2013.

The "Prism gate" incident once again raised concerns about security concerns among Governments and companies, and further hit Cisco's business in China, which expanded to 18% per cent in the latest fiscal year 2014. As a drag, the entire Asia-Pacific market is weak, the overall decline by 9%.

"We will not give our code to any government, whether it is the Chinese government or the United States Government or any group, and we have never done so." China's leaders already know that. We're not going to do it now, and not in the future. Chambers so clarified.

In fact, the suffering and questioning of Cisco is twofold. "I was sued by Chinese dissidents in the United States, saying I helped the Chinese government eavesdrop on and spy on its citizens-something we obviously didn't do." In China, there are fears that we can help the US government try to eavesdrop and monitor China-something we obviously didn't do. ”

"If you do, you will never get infrastructure business in Russia and Brazil," Chambers explains. We are a security infrastructure provider in Moscow. You cannot go beyond that line. Russians are very smart, and if you do, they'll find it every time. ”

So the short-term test did not strike Chambers ' confidence and enthusiasm for the Chinese market. "I don't want short-term thinking to interfere with long-term planning. Long-term plans for me are decades, not six months or a year or two, as many American companies consider. "We are continuing along this path," said Chambers. ”

Transformation challenges

Cisco's development process is accompanied by a "transformation". According to Chambers ' Division, the development of the internet has gone through four stages, the first phase is the era of interconnection, email as the main application of the Internet, the second stage is the E-commerce phase, which drives Cisco from 1993 to 2000 business growth, the third phase is social media, cloud, mobile and video stage, These technologies have boosted Cisco's growth over the past decade.

Today, Cisco is standing at a new crossroads. "Interconnection of all things" will drive our growth for the next 10 years. "said Chambers.

However, the challenge of transformation is beyond imagination, one of the factors is the current SDN (Software tabbed Networking, software definition Network) technology rise. In short, this technology has shifted services that were only available at high-end enterprise routers and switches to software, which can run on some inexpensive hardware platforms, so that the need for high-end routers and switches will be drastically reduced after the technology becomes popular.

According to the industry, SDN technology will break the advantages of the old established enterprises, to bring new entrants and Giants in the same starting line of the opportunity, at present, many start-ups and Amazon, Google and other Internet companies are using this technology to rebuild the network.

If Cisco's own foray into the SDN market, it would have reduced Cisco's existing core profit-hardware business from $43 billion trillion to $22 billion, according to a statement without Cisco's official confirmation.

At the beginning of November, Cisco unveiled its "application-centric infrastructure" (creator centric infrastructure, or ACI) by Insieme NX, a former investment subsidiary, as a solution to Cisco's response to Sdn.

"At the time, it was the representatives of major High-tech companies, including our competitors, who said, ' We believe this is one of the three major technological trends in the next 10 years, '" he added. "The combination of ' IoT ' and ' application-centric infrastructure ' is a huge market transformation and architecture that we think will double our turnover," Chambers has pulled together a number of partners to endorse Cisco. ”

Chambers has said that 3 of the 6 companies in the IT sector, including HP, IBM, Microsoft, Oracle, SAP and Dell, will disappear in the future due to business model problems.

"Things are evolving at a very fast rate, and if you don't let your company change, you'll fall behind, no matter how strong you are right now." "Chambers is very clear about where Cisco is now," and if we don't change, we will be one of them, "but he thinks," Cisco will be one of the 3 that continues to grow and will be the largest IT company. ”