Cisco CEO Warns Obama To Rein In NSA Or Face Collapse Of Trust In US Technology (And Cisco Sales)

Now the real world implications of NSA mischief are hurting US sales and jobs.

Zero Hedge
By Tyler Durden
18 May 2014

Back in November, Cisco stock cratered after the company was forced to reset its future revenue guidance when as a result of crashing Chinese sales, it became clear that some $2 billion in quarterly revenue had been wiped away from the previous trendline.

Since then, Cisco has managed to regain some of the lost market value as investors have readjusted to what now appears to be a far slower growth rate for the company (a few days ago it reported $11.55 billion in revenue, $1 billion less than firms such as Goldman has expected it would reported as recently as 6 months ago).

However, one question remained - what was it that caused the collapse in sales, and especially those targeting the Chinese market.

For a long time, the most likely speculated reason for the Chinese revulsion against Cisco and its peers were the factual revelations by Edward Snowden detailing the NSA illicit espionage activities, and the role of corporations such as Cisco in them.

Today, this speculation is confirmed, following news that none other than Cisco CEO John Chambers has written a letter to Obama, "warning of a collapse of trust in US technology after evidence emerged showing the National Security Agency breaking into his company’s equipment."

As the Financial Times reports having seen a letter from the CSCO executive, John Chambers called for “standards of conduct” to rein in government surveillance so that national security objectives do not interfere with the US’s leading position in the global technology market.

read more

No comments:

Post a Comment