You have to love the headline Cisco Systems Inc. put on the press release announcing the resignation of the executive favored by many to succeed long-time CEO John Chambers: "Cisco evolves senior technology leadership team."

But behind the spin surrounding the departure of Charles Giancarlo, Cisco's 50-year-old chief development officer and a founding father of the company's vaunted M&A strategy, the news could mark a significant change in the way Cisco decides which companies to buy.

Giancarlo, who played a key role in the company's strategic moves, will join private equity firm Silver Lake on January 1. Replacing him at Cisco will be a seven-person team responsible for the networking giant's product, engineering and technology strategies. The panel's composition hasn't been disclosed yet, and whether it speed or slows Cisco's decision-making process is yet to be seen.

What's certain is that removing Giancarlo from Cisco's finely tuned M&A engine will have an impact, at least in the short term, on the company. Quite simply, he laid the foundation for the way Cisco does deals. Giancarlo, who joined the company in 1994 when it bought Ethernet switching specialist Kalpana Inc., founded the company's business development organization and developed its M&A methodology. He also was key to many of Cisco's tech initiatives, many of which resulted in some major business lines.

Exactly how this departure will affect Cisco isn't exactly clear, but we're betting that in time we'll see some differences. As Chambers put it in a statement: "We will transition from a company that is driven from command and control to one that is built on teamwork and collaboration."

That can be a good thing in developing great networking gear. But it's often not a plus, and indeed can act as a hindrance, in speedy and effective dealmaking. — Olaf de Senerpont Domis

See Dec. 20 press release from Silver Lake
See Dec. 20 press release from Cisco

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