Facebook IPO: CEOs See Silicon Valley Upside
"From a Silicon Valley standpoint, the success of a company like that in the tech space and the social network space plays very well," Frank Calderoni, the Cisco(CSCO) CFO, told TheStreet. "As it pertains to the economy and jobs, that's important."
According to its S-1 filing with the Securities and Exchange Commission , Facebook had 3,539 employees at the end of March, up from 2,431 at the end of the same period last year. The Menlo Park, Calif.-based firm has also ramped up spending on infrastructure needed to support its more than 900 million users. Facebook's cost of revenue in the first quarter of 2012 increased $110 million, or 66%, year over year, thanks largely to expanding data center operations.
Calderoni told TheStreet that Facebook is a customer of Cisco. "Their success helps both of us," he said. "With their business, they drive a tremendous amount of traffic through networks -- we want to see them be successful, and we will do whatever we can to help them achieve that."
Facebook plays its technology cards close to its chest, although storage specialist Fusion-io(FIO) , which sells Solid State Disk (SSD) technology, is a known supplier. Additionally, data center specialist Equinix(EQIX) is said to work with the newly-public company.
Bob Hammer, the CEO of storage specialist CommVault(CVLT) , says that Facebook's growth is felt right across the U.S. tech sector. "It impacts all of tech," he told TheStreet. "Information that's coming off of Facebook will have relevance to any company."
Businesses, he added, are increasingly looking to apply data analytics and business intelligence software to social networking information.
TheStreet will be live-blogging Facebook's IPO, starting at 8AM ET on Friday:
Software and services company Syncapse is set to ride the Facebook wave, according to CEO Michael Scissons, who sees the IPO as a positive. "It brings more attention to our market," he said. "We offer software and services that make marketers successful on social media - for example, if a brand has 100 Facebook pages and 20 Twitter pages, they use our software to manage customer relationships."
For Ken Xie, the CEO of security specialist Fortinet(FTNT) , Facebook's offering marks an important milestone for Silicon Valley.
"The IPO validates that the Internet is entering into a new stage of connecting everybody together," he said, but warned that Facebook's growth also brings fresh challenges for the tech giant. "There's a risk of a social engineering attack - Facebook holds a lot of information today, and that can be a target."