Cisco CEO says Prime Minister 'really gets the importance of technology'

John Chambers also predicts the 'connected economy' will deliver unprecedented increases in productivity

In a keynote speech at Cisco Live this morning, CEO John Chambers praised Prime Minister David Cameron's approach to broadband rollout, describing him as "someone who understands the importance of the technology".

"I met with the Prime Minister last night and he was talking about the power of information technology. Compared with the rest of Europe and on a considerably tough budget, he really gets the importance," Chambers said.

Chambers went on to explain that Cisco sees massive opportunities in Europe.

"We have been through a tough couple of years, but I believe we are coming through this. What you are beginning to see is a very highly skilled workforce on a massive scale," he said.

"But if we don't figure out how to use this on a competitive basis then we will be left behind."

Chambers pointed out that some economists expect productivity in Europe to grow at two to three per cent a year, and that this is something that has not been seen before in the developed world.

"Broadband, 3G, 4G and collaboration are enabling this productivity. What we are seeing is the move from an information economy to a connected economy," he said.

"If you don't have broadband at an affordable price for everyone you won't achieve growth. But also broadband alone won't do it, you need the innovation as well.

"Business leaders in Europe are becoming more optimistic. This optimism usually means in the next two or three quarters capital will be spent, and the two or three quarters after that they will start hiring."

Chambers predicted that the spread of high-speed broadband would be accompanied by a massive rise in video traffic across all sectors, adding that by 2014 "90 per cent of consumer internet traffic will be video - and video will have increased sevenfold by then".