Cisco CEO Mulls Apple, Microsoft Relationships

Can Cisco Systems (CSCO) cooperate and compete with both Microsoft Corp. (MSFT) and Apple Inc. (AAPL)? That was one of the key questions Cisco CEO John Chambers faced during a question-and-answer session with me and other members of the press on July 24.

Chambers is clearly working overtime to determine if (or how) Cisco can work more closely with Microsoft, even as Cisco increasingly competes with the software giant in the unified communications market. “We try [to partner] with Microsoft,” said Chambers. “[Microsoft CEO] Steve [Ballmer] and I have similar views of customers. If we can generate more top- and bottom-line growth rather than colliding across the board, we’ll work together.”

However, Chambers conceded that partnering with Microsoft in a win-win fashion can be difficult. “No one has done that model well and I don’t want to mislead you on that. We’ll see if it will work.”

Chambers stated back in April that Cisco had a “three-year lead” on Microsoft in the unified communications space. But during the July 24 session, Chambers downplayed industry rivalries.

Rather than focusing on competitors, Chambers said he preferred to focus on market transitions—such as the move to unified communications. By taking some early risk and timing transitions correctly, Cisco has continually beaten competitors to new and emerging market opportunities, Chambers insisted.

Meanwhile, hope for a potential iPhone partnership between Apple and Cisco appears to be fading. “I like what [Apple is] doing, loading up networks” with video content that requires Cisco’s infrastructure, Chambers noted.

But when it comes to working with Cisco and other technology companies, Chambers indicated that Apple’s nature “isn’t to partner.”

Chambers sounded optimistic about the company’s prospects during the interview session. However, he asked all members of the press to note that his statements should not be considered an indicator -- positive or negative -- of Cisco’s current financial performance. The company’s current quarter ends Saturday, July 28.

Chambers participated in the Q&A as part of the company's Networkers Live conference held this week in Anaheim, California.

Disclosure: none