Read the memo explaining Cisco's new reorganization, as it combines key cloud and data center businesses and shuffles its leadership (CSCO)

Cisco CEO Chuck Robbins

Cisco is making key changes as part of an effort to make it more competitive in a changing enterprise tech landscape, highlighted by the rise of the cloud, according to an internal memo.
The changes, which were outlined in a memo from Executive Vice President David Goeckeler, highlights a heavier emphasis on its cloud strategy and on consolidating its efforts in the networking and data center markets.
Cisco is combining its enterprise networking and data center teams into one group to be led by Senior Vice President Scott Harrell. The tech giant is also creating "an expanded group" focused on the cloud, and is also reorganizing its service provider, hardware and silicon, and security development teams.
"While I know these updates may seem like a significant change, it's important to understand, this alignment will create new opportunities for driving synergies across domains and will strongly position the company against our competitors," Goeckeler said.
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Cisco is making key organizational changes in a bid to become more competitive in a changing tech landscape that is being transformed by the rapid rise of the cloud.

The changes, which were outlined in a memo from Executive Vice President David Goeckeler, highlights a heavier emphasis on its cloud strategy and on consolidating its efforts in the networking and data center markets.

"It's critical that we continue aligning our development process with the consumption motion our customers need as they begin to embark on a multi-domain approach," he said in the memo, which was reported on earlier by The Information and CRN.

Cisco is combining its enterprise networking and data center teams into one group to be led by Senior Vice President Scott Harrell. The tech giant is also creating "an expanded group" focused on cloud to be led by Senior Vice President Liz Centoni, who will continue to lead the company's Internet of Things business.

The company is also reorganizing its service provider, hardware and silicon, and security development teams.

"While I know these updates may seem like a significant change, it's important to understand, this alignment will create new opportunities for driving synergies across domains and will strongly position the company against our competitors," Goeckeler said.

Cisco emerged as a powerhouse as a leading provider of networking equipment, sometimes referred to as the plumbing used by businesses to set up private data centers. But the cloud has disrupted that market as it let businesses set up networks on web-based platforms like those run by Amazon, Microsoft and Google — and allowed them to scale down or even abandon in-house data centers.

Traditional enterprise tech players like Cisco are banking on two trends that could make them more significant players in this new world. One is the hybrid cloud in which businesses set up networks on web-based platforms while keeping huge chunks of their data and applications in private data centers. The other is multicloud, in which businesses set up networks on different cloud platforms and on in-house data centers.

Cisco is also adapting to other major trends, including AI and 5G. In a statement, the company said the changes "will better align our development process with our customers' needs as they transition to a multi-domain approach."

Read the full memo from Cisco Executive Vice President David Goeckeler below:

Team,

As I've mentioned before - through our multi-domain strategy, we're paving the path forward for our customers and the industry. Over the past several months, the progress you've made in integrating automation, analytics and security across domains is sending a strong message -Cisco is the company developing a new Internet that will push the boundaries of innovation. We aren't just talking about multi-domain architecture, we're the engineers actually building it.

Our customers and partners are in the early stages of understanding the outcomes a multi-domain architecture can drive and the business-critical capabilities they'll gain from deploying our new technologies. They're turning to Cisco to help them define their deployment strategies and as a result, we're learning more about how they want to consume our architecture.

It's critical that we continue aligning our development process with the consumption motion our customers need as they begin to embark on a multi-domain approach. Today, I'd like to share some organizational updates with you that will help us adapt to the market and put us on a path towards convergence for our customers and ourselves. The following changes are effective today:

Enterprise and Data Center Networking

In order to drive a cohesive, enterprise-wide networking strategy from user to the application, we're combining the Enterprise Networking and Data Center networking teams into one group led by SVP/GM, Scott Harrell. The networking technology and SP as a channel platforms -currently a part of Kip's Cloud Platforms and Solutions group -will also move to Scott's team.

Cloud Strategy and Compute

We're forming an expanded group focused on the cloud market that will drive Cisco's cloud strategy including our compute business. This group will be led by SVP/GM, Liz Centoni. Liz will continue to lead the IoT business as well and will continue collaborating closely with the Enterprise Networking team.

Kip Compton, who was previously leading the Cloud Platforms and Solutions Group, will take on a new role in the Networking and Security Business after the group's transition is completed. I want to thank Kip and his entire CPSG team for their outstanding work over the past several years. I look forward to a continued close collaboration with Kip as we drive NSB forward.

Service Provider

The network orchestration products -currently part of the Cloud Platforms and Solutions group will join the Service Provider Business, led by SVP/GM Jonathan Davidson. These technologies, however, will continue to be leveraged broadly across the portfolio.

Core Hardware Group

All hardware and silicon development for the expanded Enterprise Networking, Cloud & Compute businesses will move to the CHG group led by Ravikrishna Cherukuri, SVP of Core Hardware.

NSB Chief Technology & Architecture Office

After over six years leading CTAO of the Networking and Security Business, Dave Ward has decided to take on a new role inside the company. I'd like to thank him for his passion and dedication to driving innovation at Cisco and know he will bring this same commitment to his next role. Roland Acra has agreed to assume the CTAO position and continue working closely with me as part of my leadership team. I'm looking forward to the impact I know he will make in partnering with our customers as they face emerging challenges in a multi-domain world.

While I know these updates may seem like a significant change, it's important to understand, this alignment will create new opportunities for driving synergies across domains and will strongly position the company against our competitors.

As we move forward, I ask that everyone continue focusing on your projects and delivering the most innovative, highest quality technology in the industry. I'll also point out that we're not changing any projects or products as a result of this update. My point here is to ask that you please stay focused on your current projects!

Along with the rest of the NSB leadership team, we want to make sure your questions are answered and that you know what to expect as we rollout this structure over the coming weeks. We have two Ask Me Anything sessions scheduled today and tomorrow to discuss any topics you'd like us to cover. The Outlook invitations were sent out last week so if you don't have them on your calendars yet, check your inbox.

Thanks for all that you do and if you have questions, please join one of the sessions.

-David

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