Cisco's market cap is $90 billion once taking out net cash. Even in the worst year of the financial crisis Cisco had $9 billion in free cash flow. Free cash flow is projected to grow to $13 billion by 2013. That leaves a lot of room for error.
I believe we are entering a weak economic environment but the inventory and overbuilding issues that were pervasive during the last recession will be less of an issue this time around as companies stayed disciplined. I especially like that Cisco has been a consistent buyer of their own shares. When the market is falling it is nice to have a buyer of last resort and Cisco should outperform, even if the market does poorly.