Cisco will lead SDN and win IT, Chambers says

The company's sweeping architectures will beat generic hardware, Chambers said

By , IDG News Service |  Networking

There's a big showdown coming in IT pitting no-name hardware with overlaid software against purpose-built architectures that stretch from data centers to the edges of networks, Cisco CEO John Chambers says.

Most of today's top IT vendors won't be around in a meaningful way in 10 years, with Cisco -- naturally -- left standing, Chambers told a packed house at his keynote address at the Cisco Live conference in San Francisco.

"You're going to see a brutal, brutal consolidation of the IT industry," he said. Many other industries will also consolidate, and enterprises will have to transform themselves and adopt end-to-end architectures like Cisco's to stay competitive, he said.

The company is directly taking on SDN (software-defined networking) in the form of so-called "white box" networking hardware with an overlay of software such as the OpenFlow open-source protocol or VMware's NSX. Cisco will win with a combination of its ACI (Application Centric Infrastructure) platform with hardware built from a combination of third-party and Cisco-developed silicon, he said. Traditional, standalone networking equipment will be sidelined, he said.

Though open-source software on top of white-box hardware may cost less initially, a unified architecture saves operational cost by being simpler to set up and manage, Chambers said.

"We will be the best implementer of SDN in the world," he said. "It will not only benefit Cisco. We will lead this industry."

The Chambers keynote on overall business vision came on the eve of an address by President of Development and Sales Rob Lloyd, who is set to discuss Cisco's "technology and business vision" on Tuesday morning. While that lineup might suggest Chambers, 64, is getting ready to hand off the CEO role to Lloyd, he indicated last November he would stay on for two more years. Chambers has also discussed nine other Cisco executives, in addition to Lloyd, as possible successors.

On Monday, his familiar stagecraft was fully on display, with several forays into the audience and confident predictions on the future of IT and of Cisco. Chambers is still gunning for the top spot in tech as a whole, even as its financial results take a dip.

While citing relatively flat revenue at Hewlett-Packard and IBM as signs those traditional tech giants are fading, Chambers acknowledged Cisco has some work to do itself. The company has marked year-over-year drops in revenue and profit for the past three quarters.

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