& cplSiteName &

Cisco's Farewell to Consumers

Craig Matsumoto
Valley Wonk
Craig Matsumoto
1/25/2013
50%
50%

Cisco Systems Inc.'s love affair with the consumer market is finally over, with the sale of Linksys to Belkin Corp., announced Thursday. (See Cisco Unloads Linksys Unit.) Cisco does have set-top boxes left, but that's a service-provider product line. And the company has vehemently defended set-tops against rumors of a possible sale, so I wouldn't expect any changes there. (See Cisco: 'We Love Set-Top Boxes'.) Flip, umi, Linksys and the whole vision of Cisco becoming a driving force in the home network and the electronic spine of your future living-room -- that's all done now. "In our opinion, Cisco has finally concluded that selling to consumers is not the same as selling to enterprises," writes analyst Simon Leopold of Raymond James Financial Inc. in a note published Friday morning. That's certainly true. And yet, I was willing to believe in Cisco invading the living room. I didn't think they'd necessarily win -- what I mean is that I could buy into the logic that said Cisco needed to take a shot at it. That's partly because every big company seemed to be playing up its importance to the future home network. Chips, software, boxes -- they all saw a chance to take a dominant position in a huge future market. Meanwhile, Cisco was still considering itself a hot-growth company, and it needed a wide-open area for expansion. The living room was a market on the verge of transition -- and Cisco just loves to talk about how it nails industry transitions. But a lot of the things Cisco wanted to push into our lives -- high-definition video, or continual access to workplace collaboration (think Cius) -- got absorbed into a stronger force: smartphones and tablets. Flip became superfluous. So did Cius, which isn't a consumer device but fell prey to the same trend. Even before that, I struggled to understand the logic behind the Flip. And umi, the home telepresence system, was an overshot -- an overpriced product engineered for an unnecessarily high level of video quality. (I do believe we'll all learn to live with low-quality video for casual uses, just as we put up with the lousy audio on cellphones.) Like a lot of romantic notions, the home network lost its glow as the day-to-day reality crept in. Cisco being in consumer markets felt like more and more of a mistake. Linksys's arrival predated all that, of course, but without the other pieces, and without a grand home-invasion scheme behind it, Linksys feels irrelevant. Something like Meraki -- enterprise-minded, software-focused -- seems more appropriate. More like Cisco acting its age, I suppose. For more

— Craig Matsumoto, Managing Editor, Light Reading

(5)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
1/28/2013 | 10:55:48 AM
re: Cisco's Farewell to Consumers
Right, it does appear that this alarm panel, like-áCisco's-áset-top boxes, will be distributed via-áservice provider rather than at retail... at least at this juncture. JB
myhui
50%
50%
myhui,
User Rank: Moderator
1/27/2013 | 5:30:22 PM
re: Cisco's Farewell to Consumers
Broadcom showed a UltraHD (4Kx2K resolution) TV set top box chip at 2013 CES.

http://www.broadcom.com/press/...

Cisco didn't compete in that segment, and it looks like they never will compete in that segment in the near future.
joanengebretson
50%
50%
joanengebretson,
User Rank: Light Beer
1/26/2013 | 11:27:28 PM
re: Cisco's Farewell to Consumers
Cisco did make one move into the consumer market recently. It's supplying the alarm panel for AT&T. But that's quite a competitive market so I doubt you'll see Cisco trying to sell that product beyond a few key customers like AT&T and maybe another telco or cable operator.
chuckj
50%
50%
chuckj,
User Rank: Light Sabre
1/26/2013 | 6:48:00 AM
re: Cisco's Farewell to Consumers
I hope they go back to their old professional logo, this cartoon stuff is to consumerish.
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
1/25/2013 | 10:34:10 PM
re: Cisco's Farewell to Consumers
Found it interesting that Jesper Anderson, Cisco's-á-áSVP and GM of the service provider video technology group, found it necessary to tweet a link today (https://twitter.com/jespand/st... to the Feb.2012-áCisco blog post by John Earnhardt-áthat Cisco remains committed to set-top boxes... guess Jesper-á figured the Linksys sale might cause some to wonder (again) if set-tops would remain part of the Cisco plan, so he might as well get out in front to quash such speculation.-á-áBut the old STB deployment model is certainly going away...-áthe industry is shifting to home gateways that feed small client boxes and IP-capable devices like tablets and PCs, so-áI do see Cisco concentrating on that gateway market from here on out. JB
Educational Resources
sponsor supplied content
Educational Resources Archive
More Blogs from Valley Wonk
Comcast joins Google in asking for a flexible-rate optical standard, rather than 400G or terabit, but that's easier said than done
Cisco, Juniper and other more traditional Interop speakers might get overshadowed by the forces of virtualization
The Open Networking Summit has climbed the hype curve, but the conference should cling to its roots as a techie discussion forum for software-defined networking
The coalition's chairman says all these companies plan to further the SDN cause and don't have a 'nefarious' angle
Big vendors are reportedly banding together to unify SDN's approach but is it more about steering the conversation?
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Interviews
Cox Clears $2B in Business Revenue

12|8|16   |     |   (0) comments


Cox's Jeff Breaux discusses how the third-largest US MSO will reach the $2 billion revenue mark this year and plans to hit $3 billion by 2021
LRTV Interviews
Can Cable Climb Upmarket?

12|7|16   |     |   (0) comments


Carol Wilson and Alan Breznick assess cable's prospects for winning more enterprises in a landscape rocked by corporate M&A activity.
Women in Comms Introduction Videos
TalkTalk Exec: Find Your North Star at Work

12|7|16   |   3:38   |   (1) comment


Women need to find their purpose, a professional North Star, and create a personal board for themselves, according to Alex Tempest, director of partners at TalkTalk Business.
LRTV Interviews
Verizon: Beware Unknown Unknowns

12|7|16   |   04:58   |   (0) comments


Chris Novak, director of the Verizon Enterprise Solutions Risk Team, explains that enterprises who don't conduct a thorough audit of their assets often leave some things unprotected because they don't know they exist. Many times these unprotected assets are part of corporate M&A activity but left unshielded they can become a hacker's playground, he tells Light ...
LRTV Interviews
ETSI's CTO Talks NFV, 5G & NGP

12|5|16   |   09:45   |   (0) comments


Adrian Scrase, CTO at standards body ETSI, talks about the various initiatives and specifications developments related to NFV, 5G and NGP (next-generation protocols) that will underpin next-gen networks.
Women in Comms Introduction Videos
Korn Ferry Consultant: How to Find, Cultivate & Be the Best Talent

11|30|16   |   4:10   |   (2) comments


Erin Callaghan, a managing consultant for Korn Ferry Futurestep, shares strategies for companies to improve how they recruit and for women to ensure they don't get lost in the pipeline.
LRTV Custom TV
We Can Make the World More Sustainable

11|29|16   |     |   (0) comments


GeSI is a global e-Sustainability Initiative organization bringing together 40 big multinational companies around the world. According to GeSI's report, information and communication technology can make the world more sustainable. Luis Neves, chairman of GeSI, shared with us his opinion at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
Finding a New Way to Engage Customers & Drive Revenue

11|29|16   |     |   (0) comments


Mobile revenues are declining. Digicel, a player in the Caribbean telecommunications/entertainment space, has found a new way to engage customers and drive revenue. John Quinn, CTO of Digicel, shared with us its story at Ultra-broadband Forum (UBBF2016)
LRTV Custom TV
Do You Really Need Gigabit Infrastructure?

11|29|16   |     |   (0) comments


Altibox is the biggest fiber-to-the-home (FTTH) player and the largest provider of video and TV in Norway. They started out with zero customers in 2002. Now they have close to half a million households and companies attached to their FTTH business. Nils Arne, CEO of Altibox shared with us their story and insight on 5G at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
BT’s Openreach Strategy & Its Updates in 2016

11|29|16   |     |   (0) comments


A lot of developments at Openreach this year in terms of strategy and planned investments. Peter Bell, CIO of Openreach BT, shared with us the updates of Openreach at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
ITU: The Broadband Is Our Future

11|29|16   |     |   (0) comments


At Ultra-broadband Forum, Houlin Zhao, Secretary General of ITU, discussed how important it is for countries, companies and everybody to be working together to help to build the broadband and digital economies (UBBF2016).
LRTV Custom TV
Tackling 5G in Dallas

11|28|16   |     |   (0) comments


Here are our highlights of the 5G North America show in Dallas, Texas with Light Reading's Dan Jones.
Upcoming Live Events
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Cable Nodes Becoming a Choke Point
Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 12/5/2016
WiCipedia: After-School Coding, Salary Probing & Pro-Parenthood Companies
Eryn Leavens, Special Features & Copy Editor, 12/2/2016
Consolidated Snaps Up Fairpoint for $1.5B
Iain Morris, News Editor, 12/5/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Animals with Phones
A Mobile Safari Click Here
Literally.
Latest Comment
Live Digital Audio

Even when there's a strong pipeline of female talent in the comms industry, it tends to leak all the way to the top. McKinsey & Company says women experience pipeline leakage at three primary points: being unable to enter, being stuck in the middle or being locked out of the top. Each pipeline pain point presents its own challenges, but also opportunities to stop the leak. Wireless operator Sprint is making a conscious effort to improve its own pipeline from new recruits to the C-suite, and it wants the rest of the industry to do the same. In this Women in Comms radio show, WiC Board Member and Sprint Vice President of Enterprise Sales Nelly Pitocco will give us her take on the industry's pipeline challenges. Pitocco, who joined Sprint in May and has spent 20 years in the comms industry, will also offer solutions, share how Sprint is tackling the challenge within its own organization and take your questions live on air.