Telecommunications carriers can play a major role in the transformation of companies into virtual organizations that outsource all but their own expert capabilities, Cisco Systems Inc. President and Chief Executive Officer John Chambers said here Wednesday in a keynote address at the Supercomm conference.
Chambers revisited a favorite theme, the productivity gains that can come from use of the Internet, and assured the audience at this annual carrier-related trade show that corporations will turn to service providers that can offer services they value.
New waves of Internet activities such as Web-based customer care, virtual manufacturing (the outsourcing of manufacturing processes to third parties), and eventually Internet-based video training will keep lowering companies' cost for producing the same amount of product or service, and most companies haven't even completed the early stages of those developments, Chambers said.
Companies are looking outside their organization for everything but their own core competencies, and carriers can help them make that transition. To do that, they have to look beyond the voice and data transport function they have relied on traditionally, Chambers said.
Chambers also echoed calls by other speakers here for a national government policy to promote the availability of broadband connections to the Internet.
"When I originally entered this industry, I thought the further away government was, the better, and I was wrong," Chambers said. "If you don't drive broadband as a national priority, we're going to be left behind in terms of our ability to leverage the applications, not just for work but for our health, for changing the way we live and play and learn."
Chambers called for government leaders to view the goal of an affordable broadband connection to every home and business as an initiative "like putting a person on the moon." The Technet organization, a group of more than 300 IT and other executives of which Chambers is a member, has called for such an initiative. A key to success will be cooperation between business and government, and consistent policy, he said.
Supercomm continues through Thursday.