Cisco’s latest earnings show the company isn't threatened by competition...yet

Cisco’s latest earnings show the company isn't threatened by competition...yet:

 Cisco network Titan recorded an increase in turnover in the third quarter, but analysts still believe that the company could lose momentum.

For a long time, Cisco CEO John Chambers, makes no bones about criticism of his company during its last earnings call Wednesday before retiring.Titan networks reported $ 12.1 billion in revenue in the third quarter compared with $ 11.5 billion in the same period last year. Salas said that this gain of 5% should silence opponents who doubt -0.24% CSCO Cisco can remain relevant in the era of cloud computing and other technologies."All that crap about new players coming in and the software to enter and kill the white label our approach was completely wrong," Chambers said.The executive of 65 years, has a point.The emergence of a new type of technology called software defined network has caused industry analysts to question whether the new challengers could threaten the core business of selling Cisco networking equipment. A number of companies are selling new technology, mainly software companies have access to cheaper servers from Hewlett-Packard, Dell and Taiwan-based Quanta instead of buying more expensive pre-loaded hardware from Cisco.However, the hype surrounding the technology has yet to enter a market share of Cisco, which generated $ 3 billion in cash flow during the quarter."We beat all our competitors were concerned," Chambers said triumphantly.Chambers explained that rivals sell "building blocks inexpensive" lack the experience of Cisco in providing customer support for its full range of switches and routers. If one of these machines cost dies, the owner probably have no idea who to call for help, he said.But for a man who claims that Cisco is not threatened by the emerging technology, who spoke much during the call. Often with indifference.And there are subtle signs that activity switching Cisco Legacy feels some pressure from potential competition. When an analyst asked why switching activities of the Chambers of the company grew by only 6% in the quarter, suggesting that Cisco numbers only look good, because last year's figures were so bad, they grew defensive Cameras ."I'll never apologize for growth in the single digits for change," said Chambers challenge.While new technology may be gaining ground, Chambers believes Cisco has everything you need to withstand the challenge. He said 3,000 people took five years to develop high-quality products of the company. But now, the company tries to be as nimble as a startup said. As proof, Chambers said a new router in development, said 225 people required only to build more than 12 months."We can now compete with the best startups in the world and run on them," Chambers said.These are provocative and Chambers seems determined to fight potential rivals. The new CEO Chuck Robbins also be determined and certain that his predecessor remains to be seen.