How is this going to affect current satellite-based broadband providers?
Certainly, it has the potential to reduce costs. More importantly, the way the services are provided now will be different -- the router will be on board the satellite optimising use of the satellite constellation utilisation and the link to the broadband access points.
What led Cisco to create a group focused on defence and space?
We asked ourselves: "Where would we like to make an investment that would be a sustainable market and a growth market for us?" The Global Defence and Space group grew out of that over a period of two years.
The effort predates the telecom crash and is something John Chambers, our CEO, has been thinking about for quite some time now. In the areas of enterprise communication, we had a fairly good market penetration but in the area of C4I -- Command, Control, Communication, Computers and Intelligence -- in weapons and defence systems and in space -- we had basically zero percent market share. That's in a global market which will be worth $1.4tn over the next ten years.
What made Cisco want to move into an area with so little previous company expertise?
Commanding the launch of a weapons platform or talking to a satellite -- the fundamental requirements are basically the same as in any communications environment. We said: "Why haven't we been able to participate in this?" The answer is quite simple. A 19-inch rack mount box from Cisco doesn't fit very well on board a tank or a Humvee. The capabilities to support communications are there, the user demand is there: defence ministries around the world are asking: "How do we leverage commercial off-the-shelf kit to the greatest extent possible?"
So did you have any expertise in the defence area prior to two years ago?
We did in defence in enterprise communication but not in the weapons platforms or the C4I systems area.
What do you define as a weapons platform?
I'm more aware of the US systems than the UK but for example a Patriot missile battery or the Joint Strike Fighter.
Did September 11 affect your decision to target the defence industry more heavily?
I get that question every time I have a discussion and the frank answer is no. The frank answer is that we were looking at this well before that. But it absolutely helped catalyse the decision to move forward in this area.
Defence departments and ministries around the world are always looking to enhance their functionality. We have seen keen interest from MoD UK in the results of the recent launch. Space represents one of the first true macro areas of convergence. It's a convergence of technologies, missions, companies and frankly of countries. Armies today go to war as part of a coalition, they barely go to war alone, so everyone is looking at the need to do a better job of providing communications with troops.
