Table: Where Cisco Plans to Grow


Cisco's Spin: With more voice traffic over the Internet, Cisco (CSCO ) believes this market can account for $10 billion in Cisco sales in five years.

Skeptics View: Cisco is well-positioned, but its projections are overblown. Companies and carriers will likely stick with their existing networks for the foreseeable future because of the downturn in capital spending.


Cisco's Spin: Cisco already boasts about 20% of the office market, expected to grow to $3.2 billion from $1 billion by 2005. Cisco expects this business to be a billion-plus opportunity soon.

Skeptics View: Lots of entrenched competitors are already in the business, making it difficult if not impossible to dominate the market as it does in other core areas.


Cisco's Spin: Cisco believes it can grab a 10% to 30% share of this fast-growing market for data storage in coming years. Analysts say the current size of the market is $4 billion.

Skeptics View: Another billion-dollar business for Cisco? It's a stretch until the networking giant rounds out its still limited range of storage-networking products.


Cisco's Spin: Cisco sold about $520 million in local fiber-optic networking gear in 2001, according to analysts, down from $740 million in 2000, but believes it is well-positioned for an eventual upturn.

Skeptics View: Depressed telecom spending has badly crunched the business. It will take a long time to come back, and Cisco hasn't gained share.

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