Cisco sees a future in Mass.
Firm confident about investing
John Chambers, chief executive of the giant data networking company Cisco Systems Inc., said in Boston yesterday that recent massive investments his company has made in Massachusetts are just the beginning.
“We’re going to invest very heavily here,’’ said Chambers, during a luncheon speech to the Boston College Chief Executives’ Club.
In October, Cisco, which is based in San Jose, Calif., spent $2.9 billion to acquire Starent Networks Corp. of Tewksbury, a maker of data networking gear for cellular telephone systems. A month later, Cisco announced an alliance with EMC Corp. of Hopkinton, the giant data storage company, to sell a broad spectrum of data center equipment, including server computers, storage equipment, and management software. In fact, Chambers said he was on his way to a meeting with EMC chief Joe Tucci right after the luncheon. “The partnership is going great,’’ Chambers said. “I’d trust Joe Tucci with my life.’’
Chambers said that Massachusetts’ climate of technical innovation, anchored by the presence of the Massachusetts Institute of Technology, made the state highly attractive as a site for expansion and further acquisitions. Cisco has spent $15 billion to acquire 17 companies in New England since 1994, with 14 of them in Massachusetts. Massachusetts has become the headquarters of Cisco’s new mobile Internet technology group, headed by former Starent chief executive Ashraf Dahod. Cisco now has more than 2,000 workers in Massachusetts, and Chambers said the company wants more. “We are really committed,’’ he said. “We are absolutely hiring.’’
In addition, Cisco has chosen Holyoke to host a pilot program called Smart + Connected Communities, which will experiment with ways to use data networking technology to improve delivery of government services, health care, and education.
An enthusiastic Chambers abandoned the podium, walking among the attendees’ luncheon tables as he spoke of Cisco’s robust growth despite the global economic slowdown. For the third quarter, which ended May 1, Cisco’s revenues grew 27 percent year-over-year to $10.4 billion, while net income of $2.2 billion was 61 percent higher than the year before. “Every time we’ve gone into an economic downturn,’’ said Chambers, “we’ve come out of it dramatically stronger.’’
Chambers credited his company’s robust performance to a decentralized management style that has enabled Cisco to rapidly launch new business initiatives. He said that starting a new project at Cisco, a process that used to take about 18 months, now generally takes about 45 days. In addition, Chambers said that Cisco only enters businesses that the company can dominate. “Number one,’’ he said, “or don’t compete.’’
Hiawatha Bray can be reached at bray@globe.com. 
