Government Affairs

Cisco to Vortex: Productivity and Broadband Lead the Way Chambers and Ipsen deliver message on productivity and leadership
May 20, 2002 By John Earnhardt, Cisco Government Affairs

Cisco President and CEO John Chambers and Cisco vice president of Worldwide Government Affairs, Laura Ipsen, both appeared at the annual Vortex conference in Dana Point, California, with a message to business and government leaders - namely, "if you are not on it already, now is the time to get on the broadband wagon to help enhance productivity."

Vortex is an annual conference sponsored by Network World for senior executives, investors, entrepreneurs, and media in the data and telecommunications, Internet, and entertainment networking industries.

Speaking to Vortex attendees via satellite from San Jose, California, Chambers underscored his strong belief that companies and countries will invest in those technologies that deliver productivity results. "Cisco has grown productivity by 20 percent over the last four quarters, with about half of it coming from our use of Internet business solutions," said Chambers. "Looking ahead, I believe that most companies can grow productivity between five and 10 percent per year from basic implementation of Internet applications."

Chambers also discussed the evolution of a business model he calls the 'networked virtual organization,' noting his belief that this concept will be one of the most fundamental changes in business in the last half century. "The networked virtual organization is a business model based on two basic assumptions - first, that companies and government organizations will add value on a sustainable basis by focusing efforts on core capabilities, and second, that they will rely on systems and outsourcing partners for those responsibilities that others can do more effectively," said Chambers. "At the heart of this model is increasing productivity using networking technology to appear as one virtual entity to their customers."

Chambers has often suggested that other companies could follow Cisco's policy of providing broadband connectivity to all of their employees and increase their productivity even more. "If an employee works from home one hour a month, the cost of that broadband service has paid for itself. We have found that most employees with broadband at home work an additional hour each day. To me, it's a no-brainer. Broadband makes employees more productive at work, at home, and with wireless applications, on the road."

Ipsen participated on the panel, "I'm here to help: Does the network industry need Uncle Sam?" moderated by Network World Editorial Director and Vortex Executive Producer John S. Gallant and San Jose Mercury News technology columnist Dan Gillmor.

Ipsen's main points were that the government is involved in the Internet and networking, but to date has been relatively hands-off. "Governments can still do much to send a message that broadband is important." Referring to the digital divide, Ipsen said, "Although, the market will do most of the work to deploy broadband - the government must fill in the edges in order for everybody to participate."

Ipsen pointed out that there still is much opportunity for leadership in the United States on the issue and vision of broadband. "Broadband is not a political issue. Congressional leaders on both sides of the aisle have shown intense interest in broadband. I would not be surprised if broadband deployment becomes an issue where candidates attempt to show leadership in the 2002 and 2004 elections."

Other speakers and attendees scheduled at Vortex include: Craig Barrett, CEO of Intel; Vinod Khosla, General Partner at Kleiner, Perkins; Scott Kriens, CEO of Juniper Networks; Kevin O'Hara, President, Level 3 Communications; Rick White, CEO of TechNet; John Sidgmore, President and CEO of Worldcom; Ross Ireland, CTO, SBC, and Robert Pepper, Chief, Office of Plans and Policy, Federal Communications Commission.