And Crescendo's four co-founders still work for Cisco. Now, Mr. Chambers vows to accelerate the pace, with as many as 25 acquisitions this year. Advancing technology means Cisco can't do everything itself, he says. So the company plans to grow by buying the products and technology it can't, or doesn't want to, develop. Top of the List These days, fiber optics are near the top of that list, which is why the Cerent deal was so crucial.
Cisco is the dominant maker of the equipment that routes computer traffic over electronic networks.
But telecommunications companies, spurred by the explosive growth of the Internet, increasingly are building fiber-optic networks, which carry more information by converting it into pulses of light. A year ago, Cisco had little fiber-optic expertise, and was in danger of being shut out of a huge market. Mr. Chambers was hooked. By midsummer, Mr. Chambers was ready to move. He knew Cerent would be a good fit.