& 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?
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, September 14, 1:00PM EDT
What Is Agile?
Kent J. McDonald, Product Owner, Agile Alliance
UPCOMING COURSE SCHEDULE
Friday, September 16, 1:00PM EDT
How to Implement Agile
Alan Bateman, Director, Agile Transformation
Wednesday, September 21, 1:00PM EDT
What Is DevOps?
Colin Kincaid, CTO, Service Provider, Cisco
Friday, September 23, 1:00PM EDT
How to Implement DevOps
,
in association with:
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 Custom TV
F5 Virtual Network Function Integrations With Partner Orchestration Platform

8|24|16   |   6:38   |   (0) comments


F5's Kishore Patnam, product manager for F5's service provider solutions, discusses why service providers are moving towards virtualization and how his clients are utilizing F5's solutions.
Between the CEOs
CEO Chat: Intel's Alexis Black Bjorlin

8|17|16   |   06:23   |   (0) comments


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.
Telecom Innovators Video Showcase
Accelerating Telecom Digital Transformation With Nominum DNS

8|1|16   |   12:04   |   (0) comments


Light Reading's Steve Saunders gets an update from Nominum CEO Gary Messiana on how his company is helping carriers on the digital transformation journey.
LRTV Custom TV
Reinventing Operations for a Virtual, Software-Defined World

7|28|16   |   5:23   |   (0) comments


Heavy Reading Senior Analyst Jim Hodges speaks with Accenture's Larry Socher and Matt Anderson about what service providers must do to transform their business to get the benefits of SDN and NFV including: leveraging DevOps, introducing real-time OSS and implementing analytics.
Women in Comms Introduction Videos
Fujitsu Sales Leader Shares Lessons Learned

7|27|16   |   5:12   |   (1) comment


As Fujitsu's only female sales leader, Annie Bogue knows the importance of asking for what you want, being flexible (she's been relocated five times), keeping a meticulous calendar, 'leaning in,' working harder than everyone else around you, being aware and more.
Telecom Innovators Video Showcase
VeEX Test & Measurement Solutions

7|25|16   |   08:57   |   (0) comments


Cyrille Morelle, president and CEO of VeEX Inc., talks test and measurement with Light Reading's Steve Saunders at BCE 2016. This includes innovative products such as VeSion Cloud-Based platform for network monitoring; MTTplus Modular Test platform for Access, Business, Carrier Ethernet, Transport and Core services; and OPX-BOX+ for Fiber Optics.
LRTV Custom TV
VeEX: Live From BCE 2016

7|25|16   |   03:20   |   (0) comments


VeEX's Senior Director of Business Development, Perry Romano, explains how VeEX provides tools to help install, maintain, monitor and manage network infrastructure efficiently and effectively. The portfolio of products on display include the RXT-6000, MTTplus and TX300s.
LRTV Custom TV
Real-Time Telemetry & Analytics for Intelligent SDN Orchestration

7|25|16   |   03:09   |   (0) comments


Packet Design CEO Scott Sherwood discusses how real-time network telemetry and analytics are enabling a new breed of SDN orchestration applications.
From the Founder
The Russo Report: Driving Disruption

7|25|16   |   07:44   |   (2) comments


In the first episode of a four-part series, Light Reading Founder and CEO Steve Saunders and Calix President and CEO Carl Russo drive around town discussing the disruptive mega-changes in the communications industry and where hope lies for service providers to meet the escalating demands of the cloud.
LRTV Custom TV
NetScout: Maximizing Enterprise Cloud for Digital Transformation

7|20|16   |   04:53   |   (0) comments


Light Reading Editor Mitch Wagner talks to NetScout CMO Jim McNiel about maximizing the benefits of enterprise cloud and digital transformation while minimizing potential pitfalls with a proper monitoring and instrumentation strategy.
Women in Comms Introduction Videos
Ciena's VP Offers a Career Crash Course

7|20|16   |   4:14   |   (2) comments


How did Ciena's Vice President of Sales, Angela Finn, carve out her career path? Simple, she tells WiC. She stayed true to her company, customers and principles. She shares her advice for women on how to be authentic and credible, as well as for companies that want to make a real change to their culture and practices.
LRTV Custom TV
NFV in 2016: Part 2 – Climbing the Virtualization Maturity Curve

7|19|16   |   06:56   |   (0) comments


Many of the initial use case implementations are single-vendor and self-contained. The industry is still climbing the virtualization maturity curve, needing further clarity and stability in the NFV infrastructure (NFVi) and greater availability and choice of virtualized network functions (VNFs). Interoperability between NFVis and VNFs from different vendors ...
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Five of the Top 10 most targeted countries in Check Point Software Technologies' global Malware & Threat Index for Q1 2016 are in Africa.
Hot Topics
Cisco Developing 'Monica' Digital Assistant
Mitch Wagner, West Coast Bureau Chief, Light Reading, 8/22/2016
'Most Wanted' Kobi Comes Home
Ray Le Maistre, Editor-in-chief, 8/23/2016
Rocket Fiber Lights Up Detroit With Gigabit
Elizabeth Miller Coyne, Managing Editor, 8/22/2016
Arista Banned From Importing Products – Cisco
Mitch Wagner, West Coast Bureau Chief, Light Reading, 8/23/2016
How the Padres Hit an IoT Home Run
Mitch Wagner, West Coast Bureau Chief, Light Reading, 8/25/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
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.
There's no question that, come 2020, 5G technology will turn the world's conception of what mobile networking is on its head. Within the world of 5G development, Dr. ...
Animals with Phones
Live Digital Audio

Bridging the tech skills gap is a major challenge for service providers and suppliers alike today – and the challenge is two-fold when it comes to increasing the number of women in the comms space. Level 3 Communications has made it a priority to overcome both challenges by implementing several unique programs focused on building the right candidates from within – in addition to filling the funnel by supporting STEM and other education programs. During this radio show, you’ll learn about these programs from Mary Beth McGrath, SVP of Global Talent Management at Level 3, and the best ways to bridge your own skills gap so that you are motivated and equipped for change. Plus you’ll have the chance to ask Mary Beth your questions live on the air.