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Cisco's Disastrous New Normal

Tyler Durden's picture





 

Back in November, when Cisco reported that instead of a 4% increase in revenues it would have an 8-10% collapse in sales (thank you NSA and Edward Snowden) we penned "Something Is Very Wrong With This Picture." And for those who hadn't seen the chart, we urge you to click on the hyperlink. Moments ago CSCO reported earnings, which just barely beat the already sharply downward revised estimates, but more importantly it provided guidance on what to expected in the next quarter. Well, instead of reporting it, here is a chart of how the Company's guidance looks now and relative to what Goldman was expecting CSCO would sell as recently as November. We like to call the new trendline: Cisco's disastrous new normal.

But that's not the worst news. The worst news, by far, was the following announcement from the conference call:

  • CISCO SEES 3Q ADDING DEBT TO FINANCE MATURING BONDS

In other words, issuing incremental debt to fund maturities. We hope, for its sake, that like all the developed world's insolvent governments who do just that, that CSCO stock also doubles as a reserve currency. Then again, judging by the market reaction after hours, the answer is no.

 

 


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Wed, 02/12/2014 - 17:54 | Link to Comment fonestar
fonestar's picture

What happens when you collaborate with NSA.

Wed, 02/12/2014 - 17:56 | Link to Comment derek_vineyard
derek_vineyard's picture

maybe their revenue is counted using the value of bitcoins?

Wed, 02/12/2014 - 18:01 | Link to Comment James_Cole
James_Cole's picture

Wait..you saying foreign business & .govs don't want to buy NSA 'enhanced' swag from CSCO? Nah, that's crazy. This is all an evil communist plot from China!

Wed, 02/12/2014 - 18:18 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Companies, buying back as many of their shares as they possibly can by selling as much debt in the form of low yield bonds (Thanks, Bernanke & Yellen!) as they can, and hiking dividends hand over fist, can't even beat their radically lowered earnings' targets.

Wed, 02/12/2014 - 18:22 | Link to Comment 0b1knob
0b1knob's picture

Routers have become a cheap commodity.   Like desktop computers.   The old profit margins are gone forever. Cisco meet Dell and Hewett Packard.  Remember Commodore?   Me neither.

Wed, 02/12/2014 - 18:29 | Link to Comment synergize
synergize's picture

As long as CSCO can sell that crappy debt to pension funds everything is A-OK! 

Hmmm thats why I took all my pension money out and manage it myself...

Wed, 02/12/2014 - 19:11 | Link to Comment UP Forester
UP Forester's picture

So, is this a belwether of digital-mining?

Wed, 02/12/2014 - 20:05 | Link to Comment booboo
booboo's picture

but you just did, and the only router worth a shit in this "new normal" is a Porter Cable, at least you can build a nice cabinet with it that will hold your whiskey.

Thu, 02/13/2014 - 03:16 | Link to Comment StychoKiller
StychoKiller's picture

Hear hear!  Let's hear it for Porter-Cable!

Wed, 02/12/2014 - 18:55 | Link to Comment Freddie
Freddie's picture

LOL!  Let's see.  I am a company that needs a router.  I can buy Cisco/NSA spy shit for a premium or buy cheaper Chinese routers without Spy Shit? 

Tough call.

Wed, 02/12/2014 - 21:37 | Link to Comment WonderDawg
WonderDawg's picture

What makes you think those Chinese routers don't have Spy Shit?

Wed, 02/12/2014 - 22:03 | Link to Comment kchrisc
kchrisc's picture

Soon you'll need three routers, one each from China, Europe and DC US. All with "spy shit" from their respective governments.

Thu, 02/13/2014 - 01:50 | Link to Comment A Nanny Moose
A Nanny Moose's picture

Encrypt, encrypt, encrypt.

Thu, 02/13/2014 - 03:19 | Link to Comment StychoKiller
StychoKiller's picture

Perhaps folks should modify them and turn them into ... wait for it... BATTLEBOTS!

Thu, 02/13/2014 - 04:41 | Link to Comment Freddie
Freddie's picture

Off course they do.  The Chinese are not (directly) violating my 4th Amendment Rights....that no longer exist. 

Wed, 02/12/2014 - 23:09 | Link to Comment Crash Overide
Crash Overide's picture

It will be intresting to see a Snowden list of hardware and software companies that have NSA backdoors built in kind of like what RSA did.

 

Just remember, Google is the NSA.

Wed, 02/12/2014 - 19:09 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

Bingo.

It's hitting both IBM and Cisco hard.  China doesn't want their hardware.  China sales projections are in freefall.  They will build their own.

Wed, 02/12/2014 - 19:21 | Link to Comment Freddie
Freddie's picture

CSCO has a bad reputation for arrogance but IBM is even worse.  IBM has always been an Uncle Sam company since old man Watson. Selling computers to the NWO/Nazis.  Same people.

IBM is even shittier to deal with.  IBM is like dealing with the US govt and the Mafia.  Just like General Electric.  These upstate NY companies are among the nastiest scum bags.

Years ago had a meeting where some dumb ass decided to call IBM consultants.  Their solutions was a billion dollars and laughable.  You could easily do the whole thing with PCs and some software.

I am not sure if upstate NY Corning and Xerox are the same way.  Poor Xerox got robbed blind by Steve Jobs and Bill Gates.

Wed, 02/12/2014 - 19:24 | Link to Comment pitz
pitz's picture

Both outfits have been infested with H-1B guest workers, while qualified American engineers beat on their doors, by the thousands, for the jobs. 

Wed, 02/12/2014 - 19:35 | Link to Comment Freddie
Freddie's picture

Yes.  Exactly.  They get in there and by the time the H-1B's are done - they control the place - almost no Americans get hired. 

Motorola became almost all Indian and it is one reason they fell apart.

Thu, 02/13/2014 - 03:04 | Link to Comment Clowns on Acid
Clowns on Acid's picture

Add, Juniper, and Citi to that profile....

Wed, 02/12/2014 - 21:42 | Link to Comment WonderDawg
WonderDawg's picture

I'm in the IT biz and I don't know of any American engineers that can't get jobs. They all have jobs if they're worth a shit, but there is no doubt the HIB infestation has brought down the market rate for their skills.

Wed, 02/12/2014 - 22:54 | Link to Comment ThroxxOfVron
ThroxxOfVron's picture

According to MicroSoft even the CEOs of tech giants are H1B hot swap-able.

Thu, 02/13/2014 - 01:13 | Link to Comment AGuy
AGuy's picture

"I'm in the IT biz and I don't know of any American engineers that can't get jobs"

Give it a couple years as foriegners stop buying all US made hardware and software because the NSA fiasco. CISCO and IBM may be the first to see sales plunge, but we'll see EMC, NetApp, Intel, MS,  etc also see significant sales declines. Then you see lots of American engineers that can't find jobs or working for salary that pays half of what they currently get paid. The US gov't has pissed everyone off, and it keeps on getting worse every day.

 

 

Thu, 02/13/2014 - 03:56 | Link to Comment nufio
nufio's picture

thank you!. This has been my experience as well. We interview tons of candidates (in one of the top 5 tech companies by market cap) and we hire anyone that meets the bar. In all these tech companies (ive worked in 2) its never managers that make the hire/no-hire decision its always the engineers themselves and I personally have never seen a bias towards h1b workers for hiring. if at all they are harder to hire in the US as they have restrictions on start dates etc. 

I am very suspicious of people who havent been able to find jobs in IT but are CS or engineering graduates. Of every 100 people I interview around 50% cannot write a program to reverse a string, 95 % cannot write an good dynamnic programming solution for anything. As I see it a lot of people have no business being in IT and shouldnt really expect to get a job because of a degree certificate.

But, the contractors throudh contracting comapanies are almost exclusively on L1 from india. But most of these are test/support roles, rarely dev. These are jobs that will probably be automated in 50 years.

Disclaimer: I used to be on an H1 B in the US but moved out.  

Thu, 02/13/2014 - 11:06 | Link to Comment pitz
pitz's picture

Asking those sorts of questions in an interview environment is highly innappropriate, for starters.  Its like taking a beef heart to a surgeon and asking them to carve up dinner before you even consider using their services!   And there is tons of talent that simply can't even get an interview because most tech firms worth working for (ie: pay something that resembles a living wage) are receiving hundreds, if not thousands of resumes. 

Also, in my experience, it is generally the HR people who make the hiring decisions.  Engineers are explicitly not trusted with the task of hiring.  That's why there's so many H-1B's in the system -- the HR clowns were just looking for cheap, not for the best talent. 

Thu, 02/13/2014 - 11:01 | Link to Comment pitz
pitz's picture

I know tons of engineers who are highly skilled, but their resumes aren't even given the basics of human consideration.  So they're sitting on the couch, while the foreigners are given the jobs.  "they all have jobs", nothing could be further from the truth. 

Thu, 02/13/2014 - 00:02 | Link to Comment kchrisc
kchrisc's picture

Several firms that had IT support contracts with IBM would call my firm in to actually provide the support. IBM was too incompetent and their people all had unintelligible accents. The local branch manager would get fed up, call us and then pay us out of discretionary accounts. The branch accountants would turn a blind eye, as we were maintaining their PCs as well.

At one firm they were required to use their piece of crap CRM SW. We installed another for very little and got them up a working. The funniest part was that we "shuffled" their email, as we called it, so that their use of another CRM was seamless and unnoticed.

IBM also wanted to install a multimillion dollar document management system for each branch. The plan stalled at corporate, but we used some off the shelf SW to do the same for the branch for a few grand.

Their “solution” for a off-site T1 connection was the funniest. After 3-months, we called a few vendors and got some bids and they were up in less than a week using relatively inexpensive SMB routers. LOL

 

Wed, 02/12/2014 - 18:05 | Link to Comment Prisoners_dilemna
Prisoners_dilemna's picture

I suppose that's possible but wouldn't the chart reflect a 6000% increase since Feb 2013?!?

 

Wed, 02/12/2014 - 18:00 | Link to Comment max2205
max2205's picture

And gs is proping it up....zzzzzz

Wed, 02/12/2014 - 18:34 | Link to Comment spastic_colon
spastic_colon's picture

along with the Naz comp....why is the comp up today when all of its largest cap weights were down?  and pls feel free to point out my stupidity.

Wed, 02/12/2014 - 18:56 | Link to Comment disabledvet
disabledvet's picture

market weighted index if i'm not mistaken (which would mean i am agreement with you...this is a big deal...

Wed, 02/12/2014 - 19:05 | Link to Comment spastic_colon
spastic_colon's picture

you are correct.....i tried to calc the comp spreadsheet but now my brain is sore....maybe Tyler has an explanation somewhere

Wed, 02/12/2014 - 19:39 | Link to Comment Freddie
Freddie's picture

I thought CSCO was okay until they announced earnings after the close and it got crushed in AH trading.

Wed, 02/12/2014 - 18:02 | Link to Comment Wile-E-Coyote
Wile-E-Coyote's picture

fonestar says FUCK the NSA, he told me to say that.

Wed, 02/12/2014 - 18:10 | Link to Comment whatthecurtains
whatthecurtains's picture

For Cisco yes, for AAPL, MSFT, GOOG, etc... it hasn't quite happened... yet.

Wed, 02/12/2014 - 18:14 | Link to Comment mbutler101
mbutler101's picture

I was thinking the same exact thing. Blowback is a bitch. Keep your 'secure' devices Cisco. Fuck you. Hope your shit continues to crater.

Wed, 02/12/2014 - 18:31 | Link to Comment augustusgloop
augustusgloop's picture

"this is what happens, larry, this is what happens larry, when you fuck a stranger in the ass."

Wed, 02/12/2014 - 19:51 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

Is this your Linksys, Larry?

Wed, 02/12/2014 - 18:55 | Link to Comment Freddie
Freddie's picture

F You SillyCon Valley spyshit companies. 

Have another fundraiser and dinner for you muslim NWO stooge.

Wed, 02/12/2014 - 22:24 | Link to Comment Yenbot
Yenbot's picture

My God FS, I actually UPVOTED you (self-loathing to begin in 5,4,3,2...) ROFL

Wed, 02/12/2014 - 17:52 | Link to Comment gbresnahan
gbresnahan's picture

"As soon as it warms up outside, I'm gonna buy me some routers"
- said no one ever.

Wed, 02/12/2014 - 17:59 | Link to Comment Stoploss
Stoploss's picture

LOL!!!

Wed, 02/12/2014 - 18:02 | Link to Comment Dr. Engali
Dr. Engali's picture

+1..... Lol..... There you go again blaming the weather.

Wed, 02/12/2014 - 19:07 | Link to Comment wallstreetapost...
wallstreetaposteriori's picture

Best comment I have seen all day!

Wed, 02/12/2014 - 22:58 | Link to Comment ThroxxOfVron
ThroxxOfVron's picture

Eating salted peanuts out of cans?

Wed, 02/12/2014 - 17:54 | Link to Comment Leaf of Tree
Leaf of Tree's picture

Go 'murika.

Wed, 02/12/2014 - 17:54 | Link to Comment HedgeAccordingly
HedgeAccordingly's picture

Tapir? – Fed Pres. Bullard to BTV: We have momentum for 2014, Expects inflation to accelerate toward 2% Target http://hedge.ly/1gv9Ro7

Wed, 02/12/2014 - 18:14 | Link to Comment JimS
JimS's picture

The "inflation to accelerate toward 2% Target" is an interesting line to point at. All the pundits, who "seem" to think "inflation" is sub-2%, never actually buy anything at stores that "normal" people shop. The CNBC crowd has "little' people shopping for them. All the products that 80+% of the population needs are going up sharply in price (i.e. propane etc.) If the FED keeps removing things from their CPI basket that "rise in price", the "stated" inflation rate can be kept at sub-2% for a fairly long time. Much the same as "money supply" growth-rates when velocity of money is near zero.

Wed, 02/12/2014 - 19:51 | Link to Comment ElvisDog
ElvisDog's picture

If you read between the lines, the purpose of the Bullard statement is to telegraph that the monthly taper will continue. The "accelerate toward 2%" is a goal-seeking excuse.

Wed, 02/12/2014 - 17:57 | Link to Comment Dr. Engali
Dr. Engali's picture

Hmmmmmm, maybe hopping in bed with Uncle Sam to spy on the world wasn't such a good idea after all. I hope all these mega firms pay a hefty price for their short term outlook and their treason.

Wed, 02/12/2014 - 17:56 | Link to Comment Jumbotron
Jumbotron's picture

Networking is a commodity.  And over priced proprietary technology which only gives an incremental margin of performance enhancement makes for a poor value.

Margin compression is a bitch.

Wed, 02/12/2014 - 18:23 | Link to Comment Leaf of Tree
Leaf of Tree's picture

For my small business DLink was always better than Cisco overpriced shit.

Wed, 02/12/2014 - 19:09 | Link to Comment NotApplicable
NotApplicable's picture

God forbid if you had to buy a freakin' maintenance contract. You'd be better off buying a spare unit.

Wed, 02/12/2014 - 22:54 | Link to Comment Jumbotron
Jumbotron's picture

I'm a Netgear and dd-wrt firmware guy.  99% percent of the performance and features.......and money left in my pocket.

Wed, 02/12/2014 - 17:56 | Link to Comment Flakmeister
Flakmeister's picture

Wow....

That is truly craptastic...

Wed, 02/12/2014 - 17:58 | Link to Comment eucalyptus
eucalyptus's picture

should've gotten out of csco at 25/26, but i was in at 14 (at that point their cash/share position was massive so it was a no brainer) but i'm glad i got out this week.

not sure why i stayed in for so long...the dividend wasn't bad.

Wed, 02/12/2014 - 19:54 | Link to Comment ElvisDog
ElvisDog's picture

The problem with looking at "cash hoards" is that you, the invididual investor will never see any of it. The cash hoards will be used to pay bonuses or buy back shares.

Wed, 02/12/2014 - 17:58 | Link to Comment assistedliving
assistedliving's picture

and HuaWei breathing done his neck.  what joy

Wed, 02/12/2014 - 17:58 | Link to Comment TheRideNeverEnds
TheRideNeverEnds's picture

Market doesn't care, bullish!

Wed, 02/12/2014 - 19:10 | Link to Comment NotApplicable
NotApplicable's picture

Ah yes, the "Honey Badger" Market.

Wed, 02/12/2014 - 18:02 | Link to Comment TheGreatOutdoors
TheGreatOutdoors's picture

B-b-b-but but my plan for getting out of long-term unemployment was Cisco certification!

Fuck!

Wed, 02/12/2014 - 21:04 | Link to Comment Caveman93
Caveman93's picture

I know what you mean! "Packet Tracer saved my ass from starvation!"

-That guy

1.3 million CCNA's ....rendered immediately useless overnight

Fuck vendor certs!

Wed, 02/12/2014 - 18:09 | Link to Comment pragmatic hobo
pragmatic hobo's picture

remember when csco earnings mattered?

Wed, 02/12/2014 - 18:08 | Link to Comment buzzsaw99
buzzsaw99's picture

do you see what happens larry?

Wed, 02/12/2014 - 18:12 | Link to Comment Bosch
Bosch's picture

Wait, why is everyone mocking Cisco here? 

At least they produce a product and make money at it.  Clearly the company that woefully sucks at their job here is Goldman not Cisco. 

Wed, 02/12/2014 - 18:22 | Link to Comment jcaz
jcaz's picture

Because a year from now,  GS will be making money- Cisco won't.

Wed, 02/12/2014 - 18:43 | Link to Comment Bosch
Bosch's picture

Stealing does not equal making. 

Wed, 02/12/2014 - 19:01 | Link to Comment NotApplicable
NotApplicable's picture

As long as "money = fed notes" it does.

Wed, 02/12/2014 - 18:32 | Link to Comment edotabin
edotabin's picture

Yeah but fuck 'em man. The Internet is about sharing knowledge, information and taking humanity to the next level. This Cisco thing was a huge misstep. It's good they got busted and I hope it costs them dearly.

Wed, 02/12/2014 - 19:10 | Link to Comment NotApplicable
NotApplicable's picture

I seriously doubt that any other manufacturers are outside of the NSA's (or some other agency's) clutches, as Greenspan's magic checkbook ensured they were all bought and paid for.

Wed, 02/12/2014 - 21:51 | Link to Comment WillyGroper
WillyGroper's picture

Me too.

But can you imagine the bounty on Snowden's head from all the corporates let alone uncle scam?

Wed, 02/12/2014 - 19:02 | Link to Comment seek
seek's picture

Cisco sold their customers out to government spies. They deserve to die. That is why we're mocking Cisco.

Wed, 02/12/2014 - 19:07 | Link to Comment Fukushima Sam
Fukushima Sam's picture

Cisco has copped a major attitude over the past ten years or so now and people are happy to see them taken down a few notches.  Here are some ways Cisco has pissed people off:

1. John Chambers and his attempt to expand the company into seemlingly dozens of "market adjacencies" made a lot of Cisco customers and partners into enemies.

2. Alienating of "partners" by not really treating them like partners.

3. Fucked-up subscription licensing schemes for technology that you prefer to only upgrade once in a blue moon, and which no one can understand anyway.

4. Too much hubris, bullying, etc.

5. TAC support, once the jewel of the US IT industry, is now a fucked-up joke with support engineers treating every case of any substance like a hot potato.

Wed, 02/12/2014 - 19:28 | Link to Comment pitz
pitz's picture

6.  Firing a good chunk of the American talent, and replacing them with H-1B guest workers.  In violation of, at least, the spirit of the law allowing for foreign guest workers.

Wed, 02/12/2014 - 20:40 | Link to Comment Its_the_economy...
Its_the_economy_stupid's picture

FUCK THESE SILCOM VALLEY ASSHOLES WITH THEIR PROMISES OF PROMOTING TECH IN GRADE SCHOOL WHILE BUYING h1-b WORKERS W CONGRESSIONAL BRIBES AND SCREWING usa COLLEGE GRADUATES CARRYING 100K DEBT.

FUCK'EM AND FUCK THE CONGRESSIONAL WHORES THAT ENABLE THEM

that is all

Wed, 02/12/2014 - 21:37 | Link to Comment Its_the_economy...
Its_the_economy_stupid's picture

and, by the way, fuck the down voting asshat that cowers from posting his own opinion

Wed, 02/12/2014 - 21:07 | Link to Comment Caveman93
Caveman93's picture

SDN will trump the CCNA and make them obsolete. 

Wed, 02/12/2014 - 23:00 | Link to Comment ThroxxOfVron
ThroxxOfVron's picture

Geldman and Cessco can't both suck?

Wed, 02/12/2014 - 18:17 | Link to Comment Bunga Bunga
Bunga Bunga's picture

.... but but but it comes with free NSApps

Wed, 02/12/2014 - 18:26 | Link to Comment imapedestrian
imapedestrian's picture

The NSA sucks...and you can record that in your files NSA...NSA sucks...

BTW...the NSA was run by a creepy satanist named Michael Aquino...gee,  wonder why they are doing what they are doing?

 

Wed, 02/12/2014 - 18:52 | Link to Comment SgtShaftoe
SgtShaftoe's picture

Don't forget the father of the TIA, John Poindexter:

He was convicted in April 1990 of multiple felonies as a result of his actions in the Iran–Contra affair, but his convictions were reversed on appeal in 1991.

More recently, he served a brief stint as the director of the DARPA Information Awareness Office for the George W. Bush administration. From January 2002 to August 2003, Poindexter served as the Director of the DARPA Information Awareness Office (IAO). The mission of the IAO was to imagine, develop, apply, integrate, demonstrate and transition information technologies, components, and prototype closed-loop information systems. This aimed to counter asymmetric threats (most notably, terrorist threats) by achieving total information awareness and thus aiding preemption; national security warning; and, national security decision making.

That motherfucker should be hung by his balls until they separate from his body, have them surgically reattached, then hung again, but it will never happen. 

Wed, 02/12/2014 - 19:09 | Link to Comment fuu
fuu's picture

Ah Iran-Contra, when Israel sold weapons to Iran in order to get better weapons from the US.

Wed, 02/12/2014 - 19:42 | Link to Comment seek
seek's picture

You left out the part about the CIA selling cocaine in the US to pay for them. (And a whole lot of politicians that benefitted directly and indirectly from this)

Wed, 02/12/2014 - 20:47 | Link to Comment fuu
fuu's picture

I always found the Israel/Iran connection more interesting than the CIA/drugs angle.

Wed, 02/12/2014 - 23:07 | Link to Comment ThroxxOfVron
ThroxxOfVron's picture

Why is everyone surprised to discover that occasionally Issac and Ishmael DO actually get together to snort a few rails and access the progress on their schemes to fuck over anglos...

Wed, 02/12/2014 - 18:45 | Link to Comment pashley1411
pashley1411's picture

I won't believe there is a lesson learned until the tech giants start to

1)  decamp from NSA-occupied-territory (Oceania?) to a real neutral jurisdiction (like where?)  or

2)  like the rest of us, start pushing back against Panem like their fiscal lives depended on it.

not holding my breath

 

Wed, 02/12/2014 - 18:52 | Link to Comment SgtShaftoe
SgtShaftoe's picture

In the future, all critical and secure networks will be protected by open-source equipment and code.  The US technology industry has lost all credibility and trust. 

Wed, 02/12/2014 - 19:13 | Link to Comment NotApplicable
NotApplicable's picture

Never happen on the hardware side.

How many billion does it cost to setup a chip factory in a slave-labor state again?

Wed, 02/12/2014 - 19:49 | Link to Comment SgtShaftoe
SgtShaftoe's picture

It's already starting to happen with phones.  Enter the firefox phone. 

Wed, 02/12/2014 - 19:07 | Link to Comment Freddie
Freddie's picture

Oh you have never been to SillyCon Valley, Sand Hill Road, and the whole shithole.   Everything is Stanford this or that and if you did not go to Stanford then you are not shit.  Stanford has been in bed with MIC and the spy state for decades.  Ditto The Rand Corp down in Santa Monica.  All MIC/spy state whores. 

These people will never move out of there.  They will just hold another fund raiser for Obama.  They are all parasites on Uncle Sam too. Oracle is one of the biggest hogs at the taxpayer trough.

 

Wed, 02/12/2014 - 19:16 | Link to Comment NotApplicable
NotApplicable's picture

But... but... Larry Ellison was gonna give free Oracle software to Uncle Sugar in order to make a national ID database!

I mean, is there anything more patriotic and freedom-loving than that?

Wed, 02/12/2014 - 18:51 | Link to Comment Son of Captain Nemo
Son of Captain Nemo's picture

Perhaps we can get Bud Konheim and John Chambers together on MSNBC the next time to tell us why all those outsourced manufacturing jobs of their networking gear to Asia over the last 17 years is working out so well?

Well done Cisco.  Palo Alto thanks you!

Wed, 02/12/2014 - 19:05 | Link to Comment Son of Captain Nemo
Son of Captain Nemo's picture

Oh and almost forgot. 

Everyone you sell that "networking gear" to ain't happy because the coder(s) don't speak english as a first language and require translations in Urdu and Hindi, and the NSA is losing it's grip and "backdoor" because you follow all of their orders too much!

Wed, 02/12/2014 - 18:53 | Link to Comment BullyBearish
BullyBearish's picture

Chambers is so over anything bad happening to Cisco...

Wed, 02/12/2014 - 18:58 | Link to Comment Jack Burton
Jack Burton's picture

Consequences are a bitch. American Technology companies accepted the US Government's friendly invitation to collaborate on making US produced software and hardware simple spy tools of the NSA. This seemed a perfect match, willing technology companies who tend to feast off of government spending on their products could ensure a friendly customer at contract time. All they need do is be true American patriots and make their products into secret spy machines, a very easy task in the present state of digital electronics and code writting. Our industry stepped up to assist the government in making all American technology of any type, a branch of the NSA. Nobody saw any problem, all was well.

Along come Snowden and blows the whole thing to kngdom come, simply by telling AMericans the truth, a simple thing, a bit of truth. It seemed bad for public relations, but that would pass quickly with good PR. US tech would be sold in it's billions to tech hungry Chinese and other world consumers of America's high tech. But something happened that nobody could see coming, the world realized that any American tech product was a spy, a spy whose job was to transmit every function of the software and hardware directly to the USA spy machine. Industry especially would be running it's business as if the NSA was sitting with a terminal connected to every key stroke a business made. Including government business, and all forms of other business. American corporations would know every advance and business plan in China, India, Russia, Brazil, Australia, Canada, everywhere, nobody was spared.

Now is it any surprise that American software and hardware would quickly be shunned by the world? Were you running business in Europe, China or South America, would you want everything you do on instant display at your American competitiors offices, in real time? Because that is how this works, you are transparent to NSA and all the USG friends in business in real time. Are you a trader in Brazil, how do you like Goldman tracking every computer key stroke in real time in your business support computer systems?

Only a god damned fucking fool would purchase anything coming from America, Britain, Canada, Israel, Australia or New Zealand, because each bit of tech is totally integrated into NSA 100% spy coverage. For me, I would not care if US tech got crushed, you get what you deserve.

Wed, 02/12/2014 - 19:14 | Link to Comment Freddie
Freddie's picture

+100

I hope they get crushed - all of them. Thank you Snowden.  I hope the Russians clone a better FaceBook which I do not use.  I so want other no spy shit countries and companies to nuke these MF'ers. 

Yes as you said - big American companies able to spy on other companies around the world.  It has been going on for decades with Echelon and before that.

F them, Silicon Valley and Stanford U who spawned most of them.

Thu, 02/13/2014 - 10:22 | Link to Comment Son of Captain Nemo
Son of Captain Nemo's picture

This is what will break the cycle if they're serious.  Can no longer be under the IETF alone any longer because of it's cozy relationship with the DARPA/NSA crowd.

Having said that.  It will also take the dismemberment of the EU entirely and going back to their old economies.

And with that... We'll believe it when we see it!

http://rinf.com/alt-news/editorials/eu-commission-time-end-us-domination-internet/

Wed, 02/12/2014 - 19:06 | Link to Comment NotApplicable
NotApplicable's picture

Gee, it seems like just yesterday that Cisco had so much "cayash" that they were loaning it out to their customers to buy their products.

I guess that didn't work out too well, huh?

Wed, 02/12/2014 - 19:18 | Link to Comment Son of Captain Nemo
Son of Captain Nemo's picture

You're dating yourself and are my vintage.

Boy those were the good ol' days weren't they? Before "Big Bernie" went off to a federal prison for Salomon Brothers crimes, and Worldcum was still a $300 billion concern who's balance sheet was based entirely on misleading growth and false profits... The predecessor and prototype of every Fortune 500 Corporation we have today! ...

 

Wed, 02/12/2014 - 19:22 | Link to Comment NotApplicable
NotApplicable's picture

Poor Bernie... so misunderstood... er... I mean so not a club member.

I do remember thinking that we had reached "Peak Cisco" back when Chambers announced they were financing customers in order to prevent falling sales.

Wed, 02/12/2014 - 19:59 | Link to Comment Son of Captain Nemo
Son of Captain Nemo's picture

Kiss of death.

I remember working with Cisco IOS as a young engineer in the early 90's and I had nothing but positive to say about them.  Their hardware and OS code was consistent and for the most part stable and they had good Tech support.  Then Chambers went off the reservation when he wasn't the only game in town anymore with the likes of Juniper (ex-Cisco) that made it's debut in the mid-90's and actually did a better job at the hardware and stable OS for big internet traffic routing. 

The trouble with Chambers is he divorced himself from the bottom line when he saw the profit.  And just like Motorola vs. Intel he abandoned the "stability" of sound engineering 1) and marketing 2) and went with the Intel approach which was the reverse order.

I look at Cisco IOS from late 90's and beyond as nothing less than a "harry eyeball" that compounded there troubles by sending the jobs to Asia where the labor is 1/5 to 1/8 the price to build it here, but the management of the product is toast.  When you buy Cisco IOS you buy every service protocol and standard in the mix and no shaping for those customers that require consistent, reliable and stable performance on a set of protocols they need to have.  Code releases are haphazard and not planned well and organized like the early days of it's better past.

Thanks for the memories.

Wed, 02/12/2014 - 19:28 | Link to Comment pitz
pitz's picture

How much longer till the flush is applied to the many other Silicon Valley turds? 

Wed, 02/12/2014 - 19:12 | Link to Comment Dave Thomas
Dave Thomas's picture

PFSense is the way to go niqqas!

Wed, 02/12/2014 - 19:14 | Link to Comment Ungaro
Ungaro's picture

Well, you CAN defend yourself against the NSA spybots. I use an unbreakable, mutating-key encryption software like Cryptogra.ph with a one-time pad for all private communication and my sensitive data, which I store (encrypted) on an external device (USB HDD or SSD) that I never connect while I have an active network connection, Cryprogra.ph will send you the Premier version for the Standard product price (less that $20 vs. $200) if you mention ZeroHedge in the order comments.

Wed, 02/12/2014 - 19:56 | Link to Comment SgtShaftoe
SgtShaftoe's picture

A one time pad in electronic encryption is either a lie or it won't work easily or properly.  There's nothing wrong with good secure encryption algorithms that exist.  However, snake oil encryption could potentially get you killed.  Unbelievable encryption all right, because it's fucking bullshit! 

Encryption algorithms need to be tested for decades to be trusted.  Twofish, and others that have been vetted openly can be trusted.  Snowden also makes the statement that good encryption works, and the NSA can't break it. 

Unbreakable, mutating key, dilithium crystal resistant, fairy-dust powered encoder ring encryption...  Seriously what the fuck are you even talking about?  I'd be willing to bet money there's nothing but a Ceasar cypher under the hood in your mythical encryption talisman. 

Whoever uses it will watch it Xor, Xor, Xor, and oops, he's dead...  Thanks for playing!

 

 

Wed, 02/12/2014 - 23:16 | Link to Comment ThroxxOfVron
ThroxxOfVron's picture

"Unbreakable, mutating key, dilithium crystal resistant, fairy-dust powered encoder ring encryption... "

Well, Daaaym, Sarge; You talked Me into it.  

Lets get a freeze on and call in the reserves...

Thu, 02/13/2014 - 00:59 | Link to Comment SgtShaftoe
SgtShaftoe's picture

These fucking vipers piss me off.  There's perfectly decent encryption available for free like Truecrypt, GnuPG, and others.  Their implementations are also very vetted and vulnerabilities found and fixed.   There was even a recent problem with the commercial version of PGP where you could set the computer clock to a specific time and date where the entire volume was decrypted, and that was COMMERCIAL strong tested algorithm encryption software, but they broke it while trying to make it more managable and user friendly.  Encryption is easy to fuck up completely to the point of being useless when done incorrectly, or a mistake like the above is made.  The commercial version of  PGP has been fixed since then, but still...

Every person who claims to use a one time pad in computer based encryption is completely full of shit, or the product would be so unusable to be completely useless.  The website for this software looks like it was built by a 5 year old, and I'm sure the code is of equal quality. 

Wed, 02/12/2014 - 19:24 | Link to Comment pitz
pitz's picture

Cisco had an awesome opportunity to dominate the "telepresence" segment.  But they overpriced their gear by an order of magnitude and scared most of its potential customer base off.  And their arrogant attempts at pushing proprietary lock-in on customers have backfired.  Lots of organizations out there basically will only use Cisco gear for 'edge' applications where peers require it. 

Wed, 02/12/2014 - 19:54 | Link to Comment WTFisThat
WTFisThat's picture

Our new generation of Cisco equipment comes with a free backup and live packet inspection so you will never have to worry about that.

Long live Cisco /not

Wed, 02/12/2014 - 20:47 | Link to Comment imapedestrian
imapedestrian's picture

Again, the NSA, led by Michael Aquino developed a protocol called Mind Wars, which will allow the CIA or NSA to directly control your thoughts and emotions, your sub-conscious...through radiowaves...so...not only can the NSA listen and watch you...they may also be able to influence your behavior through the propragation of radiowaves from Cisco equipment.

There is an interview where he confirms this...he is retired, but says that Mind Wars is real and should only be used under the strictest protocol and ethics...something those guys are not too good at.

http://disinfo.com/2013/09/devils-advocate-interview-dr-michael-aquino/

Straight from the horses...or goats mouth.

Wed, 02/12/2014 - 21:16 | Link to Comment The Shodge
The Shodge's picture

Well, I guess the chance that cisco routers are equipped with NSA backdoors must be somewhere between 99.9 and 99.999%. And they're probably produced in China, so the Chinese will have added some backdoors as well. Hell, I wouldn't be surprised if these routers are so infested with backdoors that you have to remove one to add one of your own. And even if that is all not the case, who would believe it?

Wed, 02/12/2014 - 22:08 | Link to Comment mrmister
mrmister's picture

Every Cisco product comes with a free backdoor. You don't get a key. Betting against CISCO is a bet against liberty. Terrorists. :)

Wed, 02/12/2014 - 22:10 | Link to Comment Notarocketscientist
Notarocketscientist's picture

Since CISCO routers are sponsored by the NSA --- and we are providing the content ----  should we not get free routers?

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