Cisco nixes big deals in 2009

John Chambers has scotched speculation that Cisco is interested in making large acquisitions this year.

John Chambers has scotched speculation that Cisco is interested in making large acquisitions this year.

Speaking at a Goldman Sachs technology conference in the US, Chambers knocked back suggestions that Cisco was interested in picking up large-scale buys to support its burgeoning consumer operation, after being linked to Research in Motion.

Rumours have also been circulating that Cisco was open to acquiring VMware, or possibly the virtualisation virtuoso's parent, EMC, as part of its much-heralded push into the data centre.

Scott Fletcher, chief executive at Cisco Gold Partner ANS Group, told MicroScope that a tie-up between Cisco and VMware would have been fantastic for business.

"Cisco announcing its strategy for data centres is a positive for us because we also have that server and virtualisation history," he said.

This is the second time in six months that John Chambers has had to quash links between Cisco and VMware, but talk surrounding the two firms stubbornly refuses to go away. Cisco already holds a small stake in VMware.

Meanwhile there was bad news for over 200 employees at the firm's California headquarters yesterday as Cisco made a small round of job cuts that is understood to extend across its global operations.

Chambers had previously pledged that he would do everything in his power to avoid making redundancies as a direct result of the recession, but after Cisco revealed its sales and profits both dipped during the previous quarter he admitted to the possibility and said 2,000 jobs at Cisco were at risk.

"If business continues to change dramatically we will obviously do what is necessary to bring our expense structure in line with revenue. If that is the case, lay offs could be necessary as they have been one time in the past," he said at the start of February.

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