The relentless pace of Cisco Systems' acquisitions between 1993 and 2000 ground to a halt in 2001, with Cisco buying only two businesses that year. Market conditions may have shed light on cracks in its acquisition methodology, but the most profound change, according to CEO John Chambers, was the decision to acquire companies at a later stage of product development than previously. This B case includes a brief update on the company and financials up to July 2002.