Robbins: Tech world heading for tremendous consolidation
Cisco CEO warns smaller players could struggle to keep up
Cisco chief executive Chuck Robbins predicts the technology industry is heading for a period of "tremendous consolidation" as smaller players struggle to meet customers' needs.
In an interview with Bloomberg in San Francisco, Robbins (pictured) – who has been in the job for almost two months after taking over from John Chambers – said change is coming.
"I think there will be significant consolidation in the tech world," he said.
"Customers are looking for the business benefits of the technology – they want to get to the outcome faster. In order to do that, we have to bring these architectures to life and bring these solutions to customers in a way that provides benefit immediately. So I think some of the smaller, niche players will have a challenge providing a box, because it doesn't provide the business outcomes. So I think that our customers' expectations, and the pace of change, will lead to tremendous consolidation."
During his first few weeks in the role, which he took on after leading the firm's global sales organisation, Robbins reported the company's Q4 results, which broke company records.
For the three months to 25 July, Cisco posted record quarterly sales of $12.8bn (£8.2bn), up 3.9 per cent year on year. Commenting on the results at the time, Robbins revealed more disposals and M&A activity would be on the cards for his company in the future.
Robbins admitted to Bloomberg that he has had to stress the significance of the Q4 achievements to some people.
"In Q4, we had a record quarter," he said. "When I've said that to people, they sort of go 'OK, so you had a record quarter?' and I have to remind them that in the 30-year history of our company, and over the last few years when it has been doom and gloom and everything is going to disrupt us, we actually had the biggest quarter in the history of our company. So I think our solutions are relevant to our customers and they appreciate our innovation."