4 Reasons Cisco Will Be The #1 IT Company

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Alpha Stars

On December 7, 2012, Cisco Systems, Inc. (NASDAQ:CSCO) held its annual financial analyst conference in New York City. During the conference the company's CEO, John Chambers, laid out a plan explaining how Cisco will become the number one information technology company in the world.

By this statement, Chambers does not mean it will be the biggest-selling company. Rather, the CEO says he wants the company to be the most dominant in the minds of customers and to be the one setting the pace in the industry. Being number one, Chambers argued, is about being first in customer satisfaction and profit margins.

But is the pitch realistic?

The short answer is yes. The task will not be easy and competition will include juggernauts of the industry such as Microsoft, International Business Machine (IBM), Oracle (ORCL), Hewlett Packard (HPQ), and SAP AG (SAP)-all of whom have been industry leaders for decades. According to Chambers, "two or three of those [companies] will not be in that list five years from now." Chambers arguments are valid given the transformative impact of cloud computing. Companies that are not able to capitalize on this revolution will become parochial relics at a stroke, and not everyone will be a winner. Cisco's ability to capitalize on the cloud computing revolution will determine if they will stay in the mix of dominant information technology companies, and how well they exceed at this task will determine their chances of becoming the number one information technology company.

I wrote about how Cisco is acquiring its way into cloud computing in my post: "Cisco Snags Another 'Flawless' Acquisition."

4 Strategies to Greatness

Cisco's strategy to become the number one information technology company is comprised of several major components, but there are four that will play the most significant role. The first component of the

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