Cisco quits Moscow

Networking titan to shutter Russia and Belarus presence, after previously stopping operations


Cisco has decided it's time to leave Russia and Belarus, almost four months after stopping operations in response to Russia's illegal invasion of Ukraine.

The networking giant announced it would halt operations in Russia and Belarus "for the foreseeable future" on March 3 this year.

A June 23 update suggests Cisco sees no future in either nation.

China and Russia vs USA

Russia, China warn US its cyber support of Ukraine has consequences

READ MORE

"We have now made the decision to begin an orderly wind-down of our business in Russia and Belarus," the statement reads.

The company also promises to "communicate directly with customers, partners, and vendors to settle our financial matters, including refunding prepaid service and software arrangements, to the extent permissible under applicable laws and regulations."

A spokesperson told The Register the company "remains committed to using all its resources to help our employees, the institutions and people of Ukraine, and our customers and partners during this challenging time."

The Register asked if the decision means Cisco's cloud-hosted products won't be available within Russia and Belarus, if remote support services will also be impacted, and if Russian users will be denied access to other online tools like software downloads.

Cisco told us it has nothing more to say beyond its published remarks.

Cisco has already told investors that its earlier decision to stop operations in Russia cost it $200 million in Q3 alone. Quitting the country entirely will add up to real pain: Cisco's annual revenue run rate to April 30, 2022, was $51.6 billion. If we assume quitting Russia costs $800 million a year, Cisco is surrendering about 1.6 percent of annual revenue – but avoiding regulatory blowback and perhaps gaining the respect of many.

Cisco's actions might appear a little late, but the company is not the only major tech player to have escalated its response to the illegal invasion. Microsoft, for example, this week geo-blocked Russia from the section of its website dedicated to installation of Windows 10 and 11. ®


Other stories you might like

  • Cisco warns of security holes in its security appliances
    Bugs potentially useful for rogue insiders, admin account hijackers

    Cisco has alerted customers to another four vulnerabilities in its products, including a high-severity flaw in its email and web security appliances. 

    The networking giant has issued a patch for that bug, tracked as CVE-2022-20664. The flaw is present in the web management interface of Cisco's Secure Email and Web Manager and Email Security Appliance in both the virtual and hardware appliances. Some earlier versions of both products, we note, have reached end of life, and so the manufacturer won't release fixes; it instead told customers to migrate to a newer version and dump the old.

    This bug received a 7.7 out of 10 CVSS severity score, and Cisco noted that its security team is not aware of any in-the-wild exploitation, so far. That said, given the speed of reverse engineering, that day is likely to come. 

    Continue reading
  • Taiwan bans exports of chips faster than 25MHz to Russia, Belarus
    Doom it is, then, Putin

    Taiwan's government has enacted a strict ban on the export of computer chips and chip-making equipment to Russia and Belarus, a move that will make it even harder for the two countries to access modern processors following export bans from other countries.

    The island nation is the world's largest advanced chip manufacturing hub, so the export ban carried out by Taiwan's Ministry of Economic Affairs, reported last week, will make it more difficult for Russia and Belarus to find chips for a variety of electronics, including computers, phones and TVs.

    Russia has already been scrambling to replace x86 processors from Intel and AMD that it can no longer access because of export bans by the US and other countries. This has prompted Russia to source x86-compatible chips from China for laptops that will be considerably slower than most modern systems. The country is also switching to servers using its homegrown Elbrus processors, which Russia's largest bank has found to be inadequate for multiple reasons.

    Continue reading
  • HP turns back on $1b in annual sales by quitting Russia and Belarus
    Revenue hit for HP far larger than many tech providers post-pullout but PC, print giant stays course

    PC and printer giant HP Inc. is boldly but belatedly turning its back on Russia and Belarus due to the continued conflict in Ukraine.

    HP was among the first wave of tech companies to suspend shipments to the countries soon after Russia invaded its neighbor on February 24, but now the company's president and CEO Enrique Lores is making the move more permanent.

    "Considering the COVID environment and long-term outlook for Russia, we have decided to stop our Russia activity and have begun the process of fully winding down our operations," he said on a Q2 earnings call with analysts.

    Continue reading

Biting the hand that feeds IT © 1998–2022