It is amazing that a company's stock could grow by 100,000 per cent to a market value of more than US$500 billion within 10 years.

Cisco Systems, with CEO John Chambers at the helm, has become the world's most valuable company. It surpassed the software giant Microsoft this year.

It is a prime beneficiary of the soaring development of the Internet economy worldwide.

"The Internet is driving a global economy that is creating unprecedented opportunities for countries, companies and individuals around the world," said Chambers, who also serves as president of Cisco Systems.

He said the rise of the Internet economy can be tied to an emerging "Internet ecosystem," a new business model for Internet-connected businesses that serve Internet-connected customers.

"Since Internet ecosystems are open, they encourage new members to participate and foster a collaborative relationship among members," said Chambers.

However, for Internet system providers such as Cisco, more Internet players coming in means more equipment sales and more profits.

The worldwide Internet explosion has allowed Cisco's revenues to soar from US$1.3 billion in 1994 to US$12.2 billion last year.

Chambers said the Internet economy is affecting businesses and governments on a global scale.

"Business leaders recognize the strategic role that the Internet plays in their company's ability to survive and compete in the new century."

He said that in the Internet revolution, the fast will beat the slow and the pressures of survival will drive the Internet economy.

In the next five years, Chambers predicts, all communications prices will become cheaper and the transmission of voice and data will be free of charge.

"Business operation speeds and the obtaining and retaining of quality employees will become two key factors if Internet companies are to triumph in the coming five years," Chambers told a CEO & CIO Forum in Beijing last week.

In anticipation of China's huge Internet market potential and steady growth in demand, Cisco has moved rapidly to invest here.

In 1998, Chambers announced in Beijing the investment of millions of US dollars in establishing Cisco Sytems (China) Company, including a network technology lab. The company spent US$6 million last year to open a technology support centre in China.

"We have a long-term commitment to China's market, and that's why we are also focusing on educational investments," said Chambers.

The company has established more than 30 Cisco Learning Institutes in China. Another 30 are expected to be added in China's western areas.

"We are heeding the Chinese Government's call to develop the distant western areas where related education and trainings are critically needed," said Chambers.
(business weekly)