Cisco and others wary of spending in global telecom and Internet sector, says report

Telecom Lead America: There’s no respite for telecom and
Internet gear providers from the harsh economy. Leading vendors like Cisco have
expressed their concerns over the sluggish growth of the markets worldwide.


A recent report from Profit Confidential, a financial
newsletter, analyzes the current market scenario by comparing the performances
of leading providers like Cisco.


According to Michael Lombardi, lead contributor to Profit
Confidential, Cisco’s outlook for 2012 reveals a very nervous business sector
unwilling to spend on Internet gear and a weaker global economic environment.


Despite the fact that Cisco reported good earnings, the company has sounded the alarm
bell and expressed their unwillingness to spend much in this challenging
economy. The company is uncertain about its earnings outlook in Asia going
forward. Cisco also noted that weak government spending in the U.S. and
in Europe was
also an issue that was going to persist in 2012, according to Lombardi.


Cisco noted that the European debt crisis not only
meant weaker consumer and business spending in Europe, but it is also
preventing large corporations from spending here in the U.S. and in Asia
because of the perception of a coming global economic slowdown,” says Lombardi.


Due to Cisco and other technology firms’ weak
earnings outlook, the expectations for Internet technology spending growth
worldwide has been slashed by Lombardi and many forecasters and analysts for
the remainder of 2012.


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