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Cisco's Networking Academy program teaches hundreds of thousands of students worldwide the skills needed to build, design and maintain, networks -- improving their career prospects while filling the global demand for networking professionals.
But they do add up, increasing the demand for networking gear.
It benefited from "demand for networking products in conjunction with the rapid growth of the Internet, which will likely continue in the foreseeable future," Mr. Oelschlager said.
Because demand for networking products is booming, the acquired companies have a common goal of getting product out the door fast.
To reverse this trend, Cisco ordered piles of components, in particular the customised parts that themselves have a long lead time, even though there were already signs of a slowdown.So when demand for networking gear dropped dramatically in mid-December, Cisco was particularly vulnerable.
In a conference call with analysts, Mr. Vestberg said that modest levels of global demand for networking gear had changed little over the past year, as many operators chose to upgrade existing networks rather than build new ones, which weighs on Ericsson's profit.
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Mr. Vestberg said demand for mobile networking equipment remained strong globally during the quarter, especially in Russia, China, Brazil and India.
Increased demand for wireless networking equipment helped companies like Lucent Technologies, Motorola, Nortel Networks and Nokia achieve solid earnings and revenue growth for the last quarter of 2003 and sent stock prices soaring.
3Com, based in Marlborough, Mass., said yesterday that its loss had widened in the first quarter of fiscal 2004 because of weak demand for its networking products.
A report on Wednesday warned of slowing demand for optical networking equipment, whose producers are among the most highly valued in the Nasdaq index.
Carriers can also take comfort that newcomers like Cisco, which rode business demand for data networking and the Internet boom, are increasingly focused on the carriers' need to migrate from networks originally designed for voice traffic to delivery systems dominated by data and bandwidth-hungry applications like video.
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