Light Reading

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
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?
Flash Poll
From The Founder
The New IP is actually bigger even than business. Like another hugely important tech that Light Reading is digging into right now, the New IP has the potential to change the world by fundamentally advancing what it is possible for people to achieve with communications.
LRTV Huawei Video Resource Center
The Power of Five Convergences in OceanStor OS

3|4|15   |   6:24   |   (0) comments


OceanStor OS is Huawei's brand-new storage operating system. While inheriting the consistent high stability, reliability and performance from the company's previous storage products, OceanStor OS abounds in new converged storage features. Specifically, the new storage operating system achieves "five convergences" to lift storage convergence to a higher level.
LRTV Huawei Video Resource Center
4K Brings Extreme Video Experience

3|4|15   |   8:10   |   (0) comments


4K video is a hot topic in the video industry. It will certainly bring an extreme video experience to end users. At the same time, however, it will also pose a big challenge to operators. Check out this Huawei 4K experts' discussion about how operators can achieve success in 4K video service.
LRTV Interviews
DT's Virtualization Vision for Europe

3|4|15   |   10:23   |   (0) comments


Light Reading CEO Steve Saunders talks virtualization, cloudification and standards with Deutsche Telekom's Axel Clauberg at Mobile World Congress.
LRTV Custom TV
ZTE's Wireline at MWC 2015

3|4|15   |   6:35   |   (0) comments


Light Reading speaks with Jane Chen, ZTE's Senior VP of Wireline Business, about innovations in her product line at Mobile World Congress.
LRTV Custom TV
ZTE at MWC 2015

3|4|15   |   4:24   |   (0) comments


Dr. Dick Chen of ZTE USA gives Light Reading an overview of what's new at ZTE's pavilion at Mobile World Congress 2015.
LRTV Interviews
Ericsson CEO Talks Telco Data Center Tech

3|4|15   |   05:45   |   (0) comments


At Mobile World Congress, Ericsson CEO Hans Vestberg discusses telco data center technology, business models, small cells and more.
Between the CEOs
EXCLUSIVE: Cisco's Chambers on Reinvention

3|3|15   |   8:24   |   (1) comment


Light Reading CEO Steve Saunders talks transformation and virtualization – including Light Reading's independent testing of the vendor's virtualization solutions – with Cisco CEO John Chambers at Mobile World Congress in Barcelona.
LRTV Documentaries
The Three Cs of MWC15

3|2|15   |   2:33   |   (1) comment


My visit to this year's Mobile World Congress is going to dominated by three Cs – cloud, cells and coffee.
LRTV Huawei Video Resource Center
Huawei Shares Its Vision of the Future of Mobile Networks Innovations

2|26|15   |   2:30   |   (0) comments


Mobile broadband is changing our lives. It's reshaping the Internet, industry, and society. It allows us to freely connect with one another anytime, anywhere. At this year's Mobile World Congress, Huawei will share its latest insights and newest ideas and technologies that will shape the future of MBB. They will showcase their end-to-end MBB solutions that will ...
LRTV Huawei Video Resource Center
Accelerate Digitizing, Boost Digital Business

2|26|15   |   6:14   |   (0) comments


A new digital revolution is leading us to a better connected world. Together with millions of digital partners, Huawei will help CSPs to build their digital service ecosystem and aggregate a wide variety of digital services. In this video, we find out how Huawei is going to help CSPs implement digital operations.
LRTV Huawei Video Resource Center
The Secret Recipe to Enabling Hyper-Growth Industries

2|26|15   |   3:38   |   (0) comments


With a number of successful cases on network capability exposure, Huawei is going to share the secret recipe to enabling hyper-growth markets with a step-by-step approach.
LRTV Documentaries
BTE 2015 Is Bigger & Even Better

2|25|15   |   03:13   |   (4) comments


This year's Big Telecom Event (BTE) in Chicago is going to provide more opportunities than ever for networking, getting to grips with key industry challenges and opportunities and, equally as important, having some fun.
Upcoming Live Events
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
All Upcoming Live Events
Infographics
Net neutrality, broadband services and the current outlook on data consumption, as presented by the New Jersey Institute of Technology.
Hot Topics
Internet Pioneers Decry Title II Rules
Carol Wilson, Editor-at-large, 3/2/2015
Wheeler: We'll Enforce Title II 'Case-By-Case'
Sarah Thomas, Editorial Operations Director, 3/3/2015
New CenturyLink CTO in Major Overhaul
Carol Wilson, Editor-at-large, 3/4/2015
Verizon Takes Radio Dot to Detroit, VoLTE Overseas
Sarah Thomas, Editorial Operations Director, 2/27/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Check out Light Reading's interview with Jay Samit, the newly appointed CEO of publicly traded SeaChange International Inc. With a resume that includes Sony, EMI, and Universal, Samit brings a reputation as an entrepreneur and a disruptor to his new role at the video solutions company. Hear what he had to say about the opportunities in video, as well as the outlook for cable, telco, OTT and mobile service providers.