Cisco is a multinational technology company based in America. It is involved in developing, manufacturing and selling of telecommunications equipment as well as networking hardware. The company also offers other high-technology products and services. Let’s find out how much is the net worth of Cisco in 2019.
Cisco Systems was founded by Leonard Bosack and his wife Lerner in December of the year 1984. The founder was then in charge of the Computer Science Department at Stanford University. Bosack together with Kirk Lougheed who was also a worker at Stanford worked on Cisco’s first product while still at the University. They modified software from the University and adapted it as the foundation for Cisco IOS.
Bosack and Lougheed were forced to resign from the university in 1986. They were then joined by other six members that made the early Cisco team. Bill Graves was the first CEO of Cisco. Bosack and his wife Lerner left the company in August 1990 after Lerner was fired and he resigned in protest. The couple took their 70% of the company’s shares which amounted to $170 Million.
Cisco may not have been the first company to develop and sell networking hardware, but they were for sure the first to commercialize successful gadgets supporting multiple networks. Their products were perfect and withstood the test of time, and the company even spread further to service provision.
The company later in 1992 to 1994 bought various Ethernet switching companies which acted as catalyst business unit. With the adoption of internet protocol in the 90s, Cisco was not left behind, and they provided products like GSR routers and modem access shelves. The company later in 1998 gave this provision to Cisco de facto. The company became highly valuable, and by 2000 it had a market capitalization of over $500 billion.
Cisco established its significant presence in India in the mid-2000s. It had a plan of 20% of its leaders to be based there, and they established a Globalization Centre for $1billion in Bangalore. It however encountered challenges from both domestic and overseas competitors. This led to lower returns, and many employees were laid off on early retirement program.
From then the company dropped further in the years to come, and more thousands of employees were laid off, and the share prices also dropped. The company’s shares rose again in 2017 after their quarterly earnings report were released. The shares jumped by 7%.
Net Worth and Earnings
The company was ranked position 444 as of June 2018 on the Forbes Global 2000 list. It has a net worth of over $222 Billion. This was, however, a drop from what the company used to be worth in the early 2000s. Its wealth is from the sale of its products and services over the years.
Cisco system is today a leading company in networking and IT. The founders of the company had a great vision, and they moved well with technology flow and made their company a name to reckon with. As the saying goes that the future is in technology, we can for sure say that the future is in Cisco Systems.