But Cisco faces major challenges, and pundits say the company cannot keep up its sterling performance for much longer. Cisco's day of reckoning may be fast approaching, they say. The first challenge is in protecting its router share in the service provider market. Juniper Networks has almost one-third of the WAN router market, nearly double its share of a year ago. The second challenge is in attaining the No. 1 or No. 2 position in new markets, predominantly optical and wireless.
Cisco also faces the Nortel obstacle in wireless.
The third challenge is Cisco's growth. The company acquires 20 to 25 smaller companies per year, sometimes splurging billions on bigger ones. Some industry watchers say Cisco may end up buckling under that weight, losing the intellectual talent it acquires and suffering in innovation. The latest news and stock information. Feedback Tell us your thoughts on this article or the issues raised in it.