9 thoughts on “The ugly, dog-eat-dog world of data center startups”

  1. Executives leaving a pre-IPO startup does not bode well for their future. Any names (that is how senior were these executives)?

  2. I wonder how they calculate that $2m. Does that include 5 years salary (I gather they do 5 year vesting)? Are they handing out 100k CSCO shares to engineers (CSCO is at $20), or is it less, with an assumed stock price of $X in 5 years?

    If I were one of the “Left Behind” engineers at Cisco, I’d be pretty ticked off, given that what I’ve got to look forward to is cleaning up the code that gets spun in while nibbling on a handful of RSUs.

    BTW, it’s Insieme, not Insiemi.

  3. Hi Om,

    What’s the big deal here?

    Why do I ask?

    Well, on April 8, 2008 Cisco announced it was purchasing the remaining 20% of Nuova Systems it didn’t already own for $678 million.

    Cisco’s adjusted stock price closed at $23.61 on April 8, 2008 giving Cisco a stock market cap of $127.16 billion.

    4-entire years later on March 30, 2012 Cisco’s adjusted stock price closed at $21.15 giving Cisco a stock market cap of a whopping $113.91 billion.

    Since acquiring Nuova Systems, Cisco’s stockholders have lost -$13.25 billion of their wealth, which is now allowing Cisco CEO John Chambers to financially reward Mario Mazzola, Prem Jain, and Luca Cafiero once more.

    Again, what’s the big deal here?


    Brad Reese

  4. I feel sorry for those engineer joes who are left behind in Cisco, well, if they can not innovate in house, what do you expect JC to do?

    1. It is just one big fraud… after all what else can be expected from a sales guy that JC is. He obviously doesn’t know how to make break through technology, he however knows how to sell it!

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