Cisco Israel's R&D center in Netanya is facing a major strategic change. Cisco Systems Inc. (Nasdaq: CSCO), which has 500 employees in Israel, over 80% of whom work at the R&D center run by Boaz Maoz, has downsized its Israeli center.
Cisco Israel's workforce has shrunk from 700 in 2009-10, and top managers have left it one by one. Most joined the company through Cisco's acquisitions of Israeli companies between 2000 and 2005. In retrospect, these acquisitions failed to deliver the goods. In 2008, Cisco CEO John Chambers visited Israel, and for a moment it seemed that the history of the first half of the decade would be repeated.
The global economic crisis and strategic changes at Cisco put the company on a new path. It cut back operations, experienced managers at headquarters left, and it was clear that the Israeli R&D center, which was based on technologies relevant at the time of their acquisition, was waning. Six months ago, Yoav Samet moved to a senior position at Cisco's HQ in Silicon Valley. Samet, who was responsible for regional business development, was the last executive from that time. It cannot be ruled out that he was responsible for the NDS acquisition in his present capacity.
Now, maybe, there will be a turnaround. It should be made clear, Cisco is not acquiring an Israeli company. NDS has extensive operations in Israel, which play an important part in its success, and Cisco is well aware of this. A slew of new managers will join Cisco, which is looking for the right way to grow in the digital content world. These managers will bring with them new ideas about operations in Israel and investments to make here (investments that Cisco has never stopped making). It can be assumed that they will recommend possible acquisitions to Cisco. Maybe Cisco's new round will be more successful.
Published by Globes [online], Israel business news - www.globes-online.com - on March 15, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012