TEL AVIV--John Chambers, chief executive of network equipment maker Cisco Systems, said on Tuesday service providers will continue to upgrade and build out their networks for a decade.Speaking at a news conference here, Chambers said every major service provider is in discussions over whether the next generation of networks will be based on Internet Protocol. These networks will handle data sharing, voice, video, and wireless off common architectures and open standards.
"I see this generation of build-out going for a decade," he said. "Video loads are what is driving this and it isn't just video entertainment or YouTube-type activities or the ability to do very sophisticated video conferencing."
"As long as a country or geography has at least two or three major service providers who are moving at the same time you are going to see them continuing to build out networks," he said.
"We clearly bet on this, not in the last year or two. We bet going back six, seven years ago when we put almost 50 percent of our R'D investment in service providers," he added.
Chambers was in Israel to donate $2.5 million for two projects aimed at economic development.
Cisco, the top provider of routers and switches that direct Internet traffic, has been one of the most active multinational companies in Israel the past decade, buying nine technology firms for more than $1 billion.
"I'm going to continue to acquire companies here," he said, noting Cisco has bought more companies than in any other location other than the United States. "I think you are going to continue to see us being very proactive in this country. We see a lot of innovation occurring here across everything."
Chambers said Cisco has invested in 16 Israeli companies along with venture capitalists.
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