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Cisco Diversifies Again as Chambers Discusses Rivals

May 19, 2009
by Ben Worthen
Reporter, The Wall Street Journal

Ben Worthen

Cisco (CSCO) on Monday announced an initiative to sell high-tech gear to utilities, a market the company says could be a $20 billion-a-year market by 2014.

Political junkies may have heard the term “smart grid,” which is one of the areas that the Obama administration has targeted with its stimulus package. The government is committing billions to facilitate building a next-generation electrical grid that’s more energy efficient.

Cisco looks at all this talk about green and sees, well, green. In order to improve their networks, utilities will need to buy routers and switches and other gear that Cisco just happens to sell. Cisco introduced energy-management software in January, and it will no doubt come out with other products that it will package together for utility companies.

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