But that doesn't mean it has been untouched. And compared to many of the companies in that battered index, Cisco isn't so badly off. The fact is, Cisco's sheer size as the biggest seller of data-networking equipment and Internet network solutions in the world practically guarantees its survival. Indeed, Cisco is already backpedaling. On Jan. 10, CEO John Chambers made a speech at an analysts' conference about the bleakness of the industry outlook for the next couple of quarters, setting the stage for disappointing earnings.
Truth be told, Cisco has both types of clients.
Enterprise clients want to spend minimal time and effort on their telecom systems, according to Kamman. That's great for Cisco because it means its customers are locked into their equipment forever. The situation is even worse on the telecom side. The big ones, such as the regional Bell operating companies, want the best components and have the technology and knowhow to figure out how to make their systems compatible. There's one exception.