1984–1995 Cisco Systems was founded in December 1984 by
Sandy Lerner, along with her husband
Leonard Bosack. Lerner was the director of computer facilities for the
Stanford University Graduate School of Business. Bosack was in charge of the
Stanford University computer science department's computers. Cisco's initial product has roots in Stanford University's campus technology. In the early 1980s, students and staff at Stanford, including Bosack, used technology on the campus to link all of the school's computer systems to talk to one another, creating a box that functioned as a multi-protocol router called the "Blue Box". The Blue Box used circuitry made by
Andy Bechtolsheim, and software that was originally written at Stanford by research engineer
William Yeager. In 1985, Bosack and Stanford employee Kirk Lougheed began a project to formally network Stanford's campus. In 1988,
John Morgridge was appointed CEO. The name "Cisco" was derived from the city name
San Francisco, which is why the company's engineers insisted on using the lower case "cisco" in its early years. The logo is a stylized depiction of the two towers of the
Golden Gate Bridge. On February 16, 1990, Cisco Systems went public with a market capitalization of $224 million, and was listed on the
NASDAQ stock exchange. On August 28, 1990, Lerner was fired. Upon hearing the news, her husband Bosack resigned in protest. Although Cisco was not the first company to develop and sell dedicated network nodes, it was one of the first to sell commercially successful routers supporting multiple network protocols. Classical, CPU-based architecture of early Cisco devices coupled with flexibility of operating system
IOS allowed for keeping up with evolving technology needs by means of frequent software upgrades. Some popular models of that time (such as
Cisco 2500) managed to stay in production for almost a decade virtually unchanged. The company was quick to capture the emerging service provider environment, entering the SP market with product lines such as Cisco 7000 and Cisco 8500. Between 1992 and 1994, Cisco acquired several companies in
Ethernet switching, such as
Kalpana, Grand Junction and most notably,
Mario Mazzola's Crescendo Communications, which together formed the
Catalyst business unit. At the time, the company envisioned
layer 3 routing and
layer 2 (
Ethernet,
Token Ring) switching as complementary functions of different intelligence and architecture—the former was slow and complex, the latter was fast but simple. This philosophy dominated the company's product lines throughout the 1990s.
1996–2005: Internet and silicon intelligence in 2010, who was the CEO between 1995 and 2015 The
Internet Protocol (IP) became widely adopted in the mid-to-late 1990s. Cisco introduced products ranging from modem access shelves (AS5200) to core
GSR routers, making them a major player in the market. In July 2014, with a market cap of about US$129 billion, it was still one of the most valuable companies. The perceived complexity of programming routing functions in silicon led to the formation of several startups determined to find new ways to process IP and
MPLS packets entirely in hardware and blur boundaries between routing and switching. One of them,
Juniper Networks, shipped its first product in 1999 and by 2000 chipped away about 30% from Cisco SP Market share. In response, Cisco later developed homegrown
ASICs and fast processing cards for GSR routers and
Catalyst 6500 switches. In 2004, Cisco also started the migration to new high-end hardware
CRS-1 and software architecture
IOS XR.
2006–2012: The Human Network and California Gov.
Arnold Schwarzenegger at Cisco, 2010 As part of a rebranding campaign in 2006, Cisco Systems adopted the shortened name "Cisco" and created "The Human Network" advertising campaign. These efforts were meant to make Cisco a "household" brand—a strategy designed to support the low-end Linksys products and future consumer products. Throughout the mid-2000s, Cisco also built a significant presence in India, establishing its Globalization Centre East in
Bangalore for $1 billion. Cisco also expanded into new markets by acquisition, including its 2009 purchase of mobile specialist
Starent Networks for $2.9 billion. Cisco continued to be challenged by both domestic competitors
Alcatel-Lucent,
Juniper Networks, and an overseas competitor
Huawei. Due to lower-than-expected profit in 2011, Cisco reduced annual expenses by $1 billion. The company cut around 3,000 employees with an early-retirement program who accepted a buyout and planned to eliminate as many as 10,000 jobs (around 14 percent of the 73,400 total employees before curtailment). During the 2011 analyst call, Cisco's CEO John Chambers called out several competitors by name, including Juniper and HP. On July 24, 2012, Cisco received approval from the
EU to acquire NDS (a TV software developer) for US$5 billion. In 2013, Cisco sold its Linksys home-router unit to Belkin International Inc., signaling a shift to sales to businesses rather than consumers.
2013–present , former Cisco CEO
John Chambers and Cisco Senior Director of Innovation
Helder Antunes, during the 2011 presidential visit to the US On July 23, 2013, Cisco Systems announced a definitive agreement to acquire
Sourcefire for $2.7 billion. On August 14, 2013, Cisco Systems announced it would cut 4,000 jobs from its workforce, which was roughly 6%, starting in 2014. At the end of 2013, Cisco announced poor revenue due to depressed sales in emerging markets, caused by economic uncertainty and by fears of the
National Security Agency planting backdoors in its products. In April 2014, Cisco announced funding for early-stage firms to focus on the Internet of Things. The investment fund was allocated to investments in IoT accelerators and startups such as The Alchemist Accelerator, Ayla Networks and
EVRYTHNG. Later that year, the company announced it was laying off another 6,000 workers or 8% of its global workforce, as part of a second restructuring. On November 4, 2014, Cisco announced an investment in
Stratoscale. On May 4, 2015, Cisco announced
CEO and Chairman
John Chambers would step down as CEO on July 26, 2015, but remain chairman.
Chuck Robbins, senior vice president of worldwide sales & operations and 17-year Cisco veteran, was announced as the next CEO. On July 23, 2015, Cisco announced the divestiture of its television set-top-box and
cable modem business to
Technicolor SA for $600 million, a division originally formed by Cisco's $6.9 billion purchase of
Scientific Atlanta. The deal came as part of Cisco's gradual exit from the consumer market, and as part of an effort by Cisco's new leadership to focus on cloud-based products in enterprise segments. Cisco indicated that it would still collaborate with Technicolor on video products. On November 19, 2015, Cisco, alongside
ARM Holdings,
Dell,
Intel,
Microsoft and
Princeton University, founded the
OpenFog Consortium, to promote interests and development in
fog computing. In January 2016, Cisco invested in VeloCloud, a software-defined WAN (SD-WAN) start-up with a cloud offering for configuring and optimizing branch office networks. Cisco contributed to VeloCloud's $27 million Series C round, led by March Capital Partners. In February 2017, Cisco launched a cloud-based secure internet gateway, called Cisco Umbrella, to provide safe internet access to users who do not use their corporate networks or VPNs to connect to remote data centers. Immediately after reporting its fourth-quarter earnings for 2017, Cisco's price-per-share value jumped by over 7%, while its
earnings per share ratio increased from 60 to 61 cents per share, due in part to Cisco's outperformance of analyst expectations. In September 2017, Chambers announced that he would step down from the executive chairman role at the end of his term on the board in December 2017. On December 11, 2017, Robbins was elected to succeed Chambers as executive chairman while retaining his role as CEO, and Chambers was given the title of "Chairman Emeritus". Reuters reported that "Cisco Systems Inc's (CSCO.O) product revenue in
Russia grew 20 percent in 2017, ahead of Cisco's technology product revenue growth in the other so-called BRIC countries of
Brazil,
China and
India." As of 2017, Cisco Systems shares were mainly held by institutional investors, including
The Vanguard Group,
BlackRock, and
State Street Corporation.) On May 1, 2018, Cisco Systems agreed to buy AI-driven business intelligence startup Accompany for $270 million. As of June 2018, Cisco Systems ranked 444th on Forbes Global 2000 list, with $221.3 billion market cap. In 2019, Cisco acquired CloudCherry, a customer experience management company, and Voicea, an artificial intelligence company. In 2019, Cisco also introduced the "Silicon One"
ASIC chip with the G100 model reaching a speed of 25.6 Tbit/s. The Silicon One competes against the Tomahawk series by
Broadcom the
Nvidia Spectrum, the
Marvell Teralynx and the
Intel Tofino. In 2023, the Silicon One G200 will offer a speed of 51.2 Tbit/sec. 's President
Ilham Aliyev in Davos, Switzerland in January 2023 In March 2020, SVP and GM of Enterprise Networking David Goeckeler left to become CEO of
Western Digital. and was replaced by Todd Nightingale, head of
Cisco Meraki. In August 2020, Cisco announced the creation of a new 130,000 square feet Midwest headquarters in
Chicago at the
Old Chicago Main Post Office accommodating 1,200 employees. Cisco maintains over 200 corporate offices in more than 80 countries. In October 2022, Cisco announced a partnership adding the Microsoft Teams app to its meeting devices. Cisco completely curtailed sales of its equipment in Russia after the
2022 Russian invasion of Ukraine, and completely discontinued service for already-sold devices. In April 2023, it became known that the company had destroyed equipment, spare parts, and even vehicles and office furniture worth 1.86 billion rubles (about $23 million) due to the impossibility of re-exporting. In February 2023, Cisco also wrote off the debt of the Russian mobile operator
MTS in the amount of 1.234 billion rubles. As expected, these are unpaid amounts for previous equipment deliveries. In 2023, Cisco announced plans to begin manufacturing equipment in India. On February 15, 2024, Cisco announced it would lay off more than 4,000 employees, or 5% of its global workforce, and lowered its annual revenue forecast due to economic challenges and reduced demand from telecom and cable service providers. In March 2024, Cisco Systems received unconditional EU antitrust approval for its $28 billion bid for cybersecurity firm
Splunk. On April 24, 2024, Chuck Robbins, CEO of Cisco, met with
Pope Francis and signed the Rome Call for AI ethics at the Vatican, endorsing the document's principles for responsible and ethical AI use. On August 14, 2024, Cisco announced it would lay off another 7% of employees as part of an effort to consolidate its networking, security, and collaboration teams. At the same time, it announced $10.3 billion in profit for the fiscal year. In October 2024 Cisco consolidated its corporate offices in the Bay Area and moved its main headquarters to the former Splunk office on the south side of
Santana Row in San Jose. On August 13, 2025, Cisco announced it would eliminate 221 positions across its Milpitas and San Francisco offices. At the same time, the company announced an 8% increase in revenue for the fiscal year. == Financials ==