Tag Archive for CSCO

Cisco Tries Bribing Shareholders For A Tax Cut

Cisco Tries Bribing Shareholders For A Tax CutEmbattled Cisco (CSCO) CEO John Chambers recently urged the networking giants shareholders to lobby congress for a big corporate tax break. He tried to bribe promised to increase their dividend if the tax break comes through reported the BusinessInsider.

BI explains the CEO was talking specifically about repatriation, the term for when multinational corporations bring cash from overseas back into the U.S. Today they are charged the full corporate tax rate, 35%.

Cisco logoMr. Chambers has been the poster child for multinationals like Cisco wanting to be granted another so-called “repatriation tax holiday” that would allow them to bring back more than a trillion dollars at a much lower tax rate. He even appeared on 60 Minutes arguing for the plan. (I have written about Cisco’s efforts to dodge taxes here and here)

Mr. Chambers made the case that a repatriation tax holiday would be of personal benefit to Cisco shareholders. “Repatriation at a rate of between zero and 2 percent puts us on a level playing field,” he said. If Cisco could bring its overseas funds back it would spend them on beefing up manufacturing sites, jobs and “if approved” the company would “increase dividends,” he said.

Cisco CEO promises to increase dividends if tax break passes“The current tax system was developed when Microsoft (MSFT) wasn’t even public,” the Cisco CEO said. He urged the assembled to “Take time to send a note to members of Congress and others,” he urged.

In 2004 Cisco and other multinationals were granted a tax holiday. Opponents of a tax holiday for repatriation aren’t convinced that Cisco needs the tax break now. Some say that multinationals have accumulated offshore cash through gimmicks. They also point out that corporations can borrow against their overseas stash at really low rates and will use this as an ongoing method to avoid paying U.S. taxes.

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

Mobile Device Info

Mobile Device InfoIn case there was any doubt that mobile devices are the real deal, here are some stats from Digby. Globally, 80% of consumers have used computers to get access to the Web within the previous seven days. Sixty percent used their mobile devices to do so. 25% of US mobile web users only access the web from their mobile phones.

Angry Birds know where you live

Angry Birds know where you live75% of the public may be giving away their physical location when downloading smartphone applications, according to mobile security vendor AdaptiveMobile. 69% of smartphone users say such privacy breaches are unacceptable, yet Help Net Security reports that 75% fail to read the terms and conditions, which include access to data such as their physical location.

Consumers are outraged that their data may not be secure but are unwilling to protect themselves,” AdaptiveMobile VP of Handset Security, Ciaran Bradley says in the article. “We are downloading more apps than ever before, but people are unaware that their location and other information can be harvested by applications.

AdaptiveMobile research has shown that common applications including Angry Birds, Jaws, and Paper Toss have access to information including location coordinates and owner’s name, which can be shared with up to 17 different external domains including advertisers.

Consumers and the wider mobile industry need to become savvier about the information which is shared by apps,” Mike Hawkes, Chairman of The Mobile Data Association told Help Net Security. “It is becoming commonplace that personal information is shared with advertisers and developers.”

Mr. Bradley told Help Net Security that iPhone users are the most careless, with 65% completely unaware that free applications may compromise their privacy. Windows Phone users are more responsible, with 29% promising to stop downloading free applications if they had any doubt that their personal information was not safe. Windows Phone users are generally cautious, 95% of them are ‘quite’ or ‘very’ concerned about privacy infringements.

If we are to slow the rise in cybercrime, consumers need to become more aware of the need for phone security” concluded Mr. Bradley. “Not only will this frustrate hackers and other cybercriminals, but also ensure that consumers can have a safe mobile experience.”

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I wrote about mobile apps stealing PII here and here.

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Cisco’s Tablets Are Doing So Well, They’re Planning At Least Two More Models For Next Year

Cisco Cius tabletThe Cisco Cius tablet for enterprises sounded like a hard sell when Cisco introduced it. But the company is apparently proving experts wrong, including me (I wrote about the Cius here and here) because Cisco‘s (CSCO) tablets are doing well enough that the company plans to release two new form factors next year, including a 10-inch version according to the BusinessInsider

Product manager Chuck Fontana told the BusinessInsider that 1,000 companies have already bought the tablet, He wouldn’t share device unit sales, but some deployments are in the hundreds, and one company plans to buy 1,500 for its mobile sales force. The tablets are sold as part of a broader communications package and include Cisco’s teleconferencing and collaboration services.

But underneath they’re straight Google (GOOG) Android tablets and can run any Android app. To prevent employees from downloading malware-infested or low-quality apps, Cisco has rolled out a custom app store called AppHQ, where every app is vetted.

The BusinessInsider says the Cius is an interesting demonstration of how the relative openness of Android versus iOS is helping it gain traction in surprising places. Cisco didn’t go to quite the lengths that Amazon (AMZN) did with the Kindle Fire, where it basically forked Android and created a custom OS. But Android is open enough that Cisco could build its own app store and ship it with its own apps front and center.

That couldn’t have worked with the iPad, where Apple (AAPL) controls the experience.

So would Cisco consider offering a Windows tablet instead once Microsoft (MSFT) Windows 8 comes out?  “No,” said Fontana, “we’re not looking to do anything from a Windows perspective. Our core approach remains on Android.

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People Are Losing Interest In The Microsoft Tablet, And It’s Not Even Out Yet

Microsoft TabletApple‘s (AAPL) iPad has already taken about 11% of the PC market, and by the time Microsoft (MSFT) and its partners get around to releasing a real competitor next year, it may be too late according to a new study from Forrester Research (FORR) in the BusinessInsider.

Near the beginning of 2011 according to the article Forrester surveyed 3,835 consumers who were considering buying a tablet. When asked which operating system they’d like on it, 48% said Windows, well ahead of iOS (16%) and Google’s (GOOG) Android (9%). The second most popular choice was “undecided” with 16%.

In September, Forrester asked the same question of a different group of 2,229 consumers. This time, iOS came in number one with 28% of the vote. Windows had only 25%, and Android was at 18%. A whole 24% were still undecided.

Overall, interest in Windows tablets dropped 21 percentage points in six months.

The BusinessInsider says the study is probably a bit skewed but says the data shows a real perception shift: consumers are thinking of tablets more like smartphones and less like PCs. That perception could carry through to the next time they’re thinking of buying a new computing device.

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

Cisco CEO Talks Cash at Tech Dinner

Cisco CEO Talks Cash at Tech DinnerSometimes my view from the Bach Seat is just so right….

The BusinessInsider reports that former Apple (AAPL) CEO Steve Jobs told his biographer Walter Isaacson what really went on when the tech titans supped with President Barack Obama earlier this year.

repatriation tax holiday that would allow major corporations to avoid tax payments on overseas profitsWhile the tech titans were slated to discuss America’s economy and what could be done to create more jobs in the U.S. according to Mr. Isaacson, Google‘s (GOOG) Eric Schmidt, then Yahoo (YHOO) chief Carol Bartz, and Oracle‘s (ORCL) Larry Ellison and Cisco (CSCO) CEO John Chambers annoyed Obama. The business leaders seemed more concerned with boosting their own company instead of America’s economy. Mr.Isaacson focuses on Cisco’s Chambers as an example:

Cisco's (CSCO) John Chambers annoyed President Obama“Chambers, for example, pushed a proposal for a repatriation tax holiday that would allow major corporations to avoid tax payments on overseas profits if they brought them back to the United States for investment during a certain period. The President was annoyed, and so was Facebooks’s Mark Zuckerberg, who turned to Valerie Jarrett, sitting to his right, and whispered, “We should be talking about what’s important to the country. Why is he just talking about what’s good for him?

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I noted Cisco’s John Chambers’ editorial in the WSJ calling for a tax holiday last year.

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

Staff End Runs Security

When I am reclining in my Bach Seat, contemplating sharing tech services, my mind wanders to the consumerization of IT. The iPads have made an official beachhead and Skype has made it inside the perimeter. So I should not feel alone being concerned about security according to recent reports from Trend Micro and Cisco (CSCO).

employees bypass security roadblocks to engage in social networkingHelp Net Security reports that despite more workplaces regulating social networking site access, employees bypass security roadblocks to engage in social networking. The research by Trend Micro says that employees are finding ways around security roadblocks, making social networking a way of office life around the world. Trend Micro’s 2010 corporate end-user survey, found that globally, social networking at the workplace steadily rose from 19 percent in 2008 to 24 percent in 2010.

The survey also found that laptop users are much more likely than desktop users to visit social networking sites. Globally, social networking usage via laptops went up by 8 percent from 2008 to 2010. In the U.S., it increased by 10 percent In 2010, 29 percent of laptop users versus 18 percent of desktop users surveyed said they frequented these sites at work.

social networking is one of their organization's three greatest security risksThe survey also found that laptop users who can connect to the Internet outside of the company network are more likely to share confidential information via instant messenger, Webmail, and social media applications than those who are always connected to a company’s network.

A 2010 Cisco survey, which looked at the security impact of personal gadgets and social networking in the workplace, found that employees are consistently (Cisco’s words) finding ways around security policies. 68 percent of those surveyed by Cisco said that employees use unsupported social networking applications. Heavy use of unsupported collaboration, P2P, and cloud applications were also reported. More than half said social networking is one of their organization’s three greatest security risks. More than a third reported that their company lost data or experienced a breach because of employees using unsupported devices.

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So why is Facebook such a problem for enterprises? For one, it is a huge time waster. Datacenter Knowledge reports that Facebook users spend a total of more than 16 billion minutes on social networking site Facebook per day. Facebook VP of Technical Operations Jonathan Heiliger stated that 3 billion photos are uploaded to Facebook each month and users view more than 1 million photos every second during a presentation at the Velocity 2010 conference

The more popular the social network, the more effective social networks become as malware distribution platforms. KOOBFACE, the “largest Web 2.0 botnet,” controls and commands compromised machines globally. This demonstrates the scale of the threat and emphasizes the need to educate users and implement strong policies.

Trend Micro says that trying to just prevent users from accessing social networks from work could potentially increase the risk to an organization as users look for ways around computer security possibly increasing the chance of exposure to security threats. The lesson, in Cisco’s view, is that you better find the technologies–and resources–to support personal devices and applications because they will be used regardless. “The best strategic approach is to focus less on restricting usage and more on effective solutions to ensure highly secure, responsible use,” said Fred Kost, Cisco’s director of security solutions.

Call me old-school but it seems that employees have always learned to work within reasonable company boundaries. Another option for those organizations that need web 2.0 in the organization should take a look at Palo Alto Networks who have developed a firewall that can block the wasteful parts of social media and leave some parts of the web 2.0 app accessible.

Consumer technologies evolve faster than the IT department budget, and it could be a constant game of catch-up trying to accommodate the latest rogue gadgets and widgets. Ultimately, rogue IT use is not so much a failure of technology, but a failure of policy and policy enforcement.

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

Cisco to Cut 11,500 Workers

Cisco to Cut 11,500 Workers Cisco‘s (CSCO) two consecutive under-performing quarters finally prompted CEO John Chambers to take action. One of the first actions Cisco will undertake during reorganization is to sell a set-top box manufacturing plant in Juarez, Mexico. FierceEnterpriseCommunications reports that Cisco will sell the plant to Foxconn Technology Group, The plant has about 5,000 workers who likely will remain as employees of Terry Gou according to FierceEnterpriseCommunications.

Cisco logoIn addition, the embattled CEO vowed $1 billion in cuts this year to Cisco’s expenses. Mr. Chambers announced plans to cut its workforce by 11,500. Cisco said about 975, or 15 percent, would be executives with job titles of vice president or above. A Cisco spokesperson said the employee reductions announced would be enough to reach the $1 billion cost-cutting target Chambers set in May.

Foxconn logoGleacher & Co. analyst Brian Marshall told FierceEnterpriseCommunications that the staff reductions were a good first step for Cisco, but he added that the remaining questions, e.g. how Cisco would fix the top line and drive revenue growth and product innovations, need answers.

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I wrote about Foxxcom’s expansion into the Americas here. This also looks like another step in the de-consumerization of the Cisco product line.

 

Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.