BETA
This is a BETA experience. You may opt-out by clicking here

More From Forbes

Edit Story

Top Tech Execs: John Chambers

This article is more than 10 years old.

For a guy with no training in technology, John Chambers John Chambers is having an extraordinary impact on the digital economy.

In fact, the 51-year-old chief executive of Cisco Systems has virtually defined how business gets done in the Internet age. Using an acquisition strategy that would have made a Roman emperor blush, he has collected an arsenal of products in every area of networking, from routers to optics.

In the process, Chambers, with his boyish grin and southern twang, has built Cisco into the mother of all Internet companies. In the five years since he took the reins in San Jose, Calif., Cisco's annual revenue has gone from $1.2 billion to $18.9 billion. And even though its stock has slumped with the rest of the market this year, it still boasts a gain of more than 1,000% since 1995.

As seems to be the case with all great CEOs--from General Electric's Jack Welch to IBM's Lou Gerstner--Chambers has infused his company with his own personal philosophy, which filters down to become the marching orders for the masses. In Chambers' case, the doctrine is simply "Keep the customer satisfied."

"John is obsessed with making customers successful," says Howard Charney, senior vice president of customer relations. "He would turn heaven and Earth for them."

Chambers, who holds an M.B.A. from Indiana University and a law degree from West Virginia University, spent eight years at Wang Laboratories and six years at IBM before joining Cisco in 1991 as head of sales and operations. In 1995, he succeeded John Morgridge John Morgridge as CEO just as the Internet was leaping out of the starting blocks.

Cisco began as a maker of routers--devices that manage the way information moves through a corporate network. Chambers expanded its vistas to include networking products for everything from voice to broadband. Like a master builder, he fashioned his empire by gobbling up smaller competitors and promising startups. During his reign, 66 companies have given up their independence to become part of Cisco's stable.

Until Cisco came along, the conventional thinking was that growing by acquisition was an iffy proposition loaded with pitfalls. Chambers has not only proved them wrong, but he's inspired a wave of similar activity from other technology companies. Even giant chipmaker Intel has gotten into the acquisition game in a big way.

Chambers is known as a demanding leader, but one who is willing to take chances. Not every acquisition or new product is going to fly, says Charney, "but there's this cultural imperative that we'd rather try and get eight out of ten."

Having shown what it takes to forge an Internet powerhouse, Chambers is now imparting some of that wisdom to other aspiring executives. "In the end, the only sustainable advantages in the Internet economy may be your speed, your ability to attract talent and your ability to associate brand with a competitive differentiation," he told a recent gathering of business types.

"The industrial revolution was about economies of scale," Chambers says. "The Internet revolution will be about economies of skill, and how you empower people."

Of course, it also helps if you have John Chambers at the helm.

See:

Forbes.com Presents: Top Tech Execs 2000

Top Tech Execs: Hawkins, Dubinsky

Top Tech Execs: Larry Ellison

Top Tech Execs: Keith Krach

Top Tech Execs: Scott Kriens

Top Tech Execs: Henry Nicholas

Top Tech Execs: Eugene Polistuk

Top Tech Execs: John Roth

Top Tech Execs: Mike Ruettgers

Top Tech Execs: Tom Siebel