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."