Cisco - changes for a decade

Cisco CEO sees network upgrades lasting a decade

(Reuters) - John Chambers, chief executive of network equipment maker Cisco Systems Inc, said on Tuesday service providers will continue to upgrade and build out their networks for a decade.

Chambers said every major service provider is in discussions over whether the next generation of networks will be based on Internet Protocol, comprising sharing of data, voice, video and wireless off common architectures and open standards.

"I see this generation of build-out going for a decade," he said. "Video loads are what is driving this and it isn't just video entertainment or You-Tube type activities or the ability to do very sophisticated video conferencing."

Chambers said that at Cisco, network loads are growing as much as 500 percent year-over-year to meet demand for next generation networks.

"As long as a country or geography has at least two or three major service providers who are moving at the same time you are going to see them continuing to build out networks," he said.

"We clearly bet on this, not in the last year or two. We bet going back six, seven years ago when we put almost 50 percent of our R&D investment in service providers," he added.

Cisco, the top provider of routers and switches that direct Internet traffic, has been one of the most active multi-national companies in Israel the past decade, buying nine technology firms for more than $1 billion.

"I'm going to continue to acquire companies here," he said, noting Cisco has bought more companies than in any other location other than the United States. "I think you are going to continue to see us being very proactive in this country. We see a lot of innovation occurring here across everything."