Light Reading
Several former Cisco and Scientific-Atlanta engineers have formed iNovo Broadband to take on the giants of the set-top market

Ex-Cisco Execs Form Cable Set-Top Startup

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
6/1/2012
50%
50%

Some former Cisco Systems Inc. (Nasdaq: CSCO) and Scientific-Atlanta employees have gotten the band back together to create iNovo Broadband Inc. , a startup angling to become a new source for cable set-tops, cable modems and other consumer premises equipment (CPE).

If operators buy in, iNovo would set the stage for fresh competition against cable's incumbent set-top suppliers, especially Cisco, Motorola Mobility LLC and Pace plc .

A startup's lower overhead and lack of an installed base will let Duluth., Ga.-based iNovo provide CPE gear "at a very competitive price," said CEO Jack Miller, during an interview at The Cable Show last week in Boston.

Miller worked for Scientific-Atlanta for nine years before starting N2 Broadband, a video-on-demand (VoD) backoffice vendor that was sold to Tandberg Television in 2004 for $118 million and is now part of Ericsson AB (Nasdaq: ERIC)'s video product lineup. He and Himanshu Parikh, iNovo's CTO and a former VP and GM at Cisco/Scientific-Atlanta, are the principal founders of iNovo, and they began assembling their team about a year ago.

Most of the iNovo team also hailed from Cisco/Scientific-Atlanta and is comprised of cable vets who have not just designed, managed and sold cable CPE, but have also managed relationships with manufacturers such as Foxconn Electronics Inc. , Askey Inc. and Unihan Corp.

Ajith Nair, iNovo's VP of engineering, helped develop SA's first set-top box and was the main hardware architect for eight generations of boxes. Doug Woodhead, the company's principal engineer, directed the ASIC development group at Cisco/S-A. And Benny Hsu, iNovo VP of manufacturing partners, once managed the offshore, high volume manufacturing relationships for Cisco's home networking business unit.

"We have all the disciplines and experience needed to compete in the CPE business," Miller said.

Shaking things up
iNovo arrives amid a cable set-top shakeup. Google (Nasdaq: GOOG) acquired Motorola Mobility, and Panasonic Corp. (NYSE: PC) recently exited the domestic cable set-top business. Cisco recently sold its set-top box factory to Foxconn but keeps saying that it remains fully committed to the set-top box market. (See Google Closes $12.5B Motorola Deal , Will Moto Go Back to the Future?, Foxconn Buys Cisco's Set-Top Factory , Panasonic Exits US Cable Set-Top Biz and Why Cisco Wants Out of Set-Tops (Or Not).)

"There's a lot of turmoil in the market," Miller said, and iNovo took advantage of it as Cisco scaled back its operations on Sugarloaf Parkway in Lawrenceville, Ga. "There were some very good people available."

Miller thinks iNovo has the institutional knowledge and technical know-how to take MSO-defined CPE specifications through the hardware integration and building phases by shepherding that work through the manufacturers -- expertise that cable operators don't have.

iNovo got off the ground last November, has already shipped one product to a customer for evaluation and hopes to notch its first deployment deals before the end of 2012, Miller said. He's mum on which product is being evaluated, but the company lists a sizable lineup of CPE categories it's pursuing, including standard- and high-def digital transport adapters (DTA), IP-based set-tops, Docsis modems and gateways, and indoor and outdoor Wi-Fi access points.

The company has raised more than $1.5 million in seed financing and has begun to pursue an "A" round targeting about $10 million.

iNovo is also looking for "strategic investment from MSOs," Miller said. That's a path he's travelled before. Time Warner Cable Inc. (NYSE: TWC) participated in N2 Broadband's A round and deployed N2's OpenStream, a VoD backoffice system that let operators use video pumps from multiple vendors and played a big role in dropping costs to about $100 per stream from $300 in less than three years.

— Jeff Baumgartner, Site Editor, Light Reading Cable

(5)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Pete Baldwin
50%
50%
Pete Baldwin,
User Rank: Light Beer
12/5/2012 | 5:31:23 PM
re: Ex-Cisco Execs Form Cable Set-Top Startup


I certainly appreciate iNovo's credentials, but... weren't set-top boxes supposed to go away?


I'm only half kidding. These guys sound capable of doing good stuff, but this could also be a recipe for a commodity-box contender.

AESerm
50%
50%
AESerm,
User Rank: Light Beer
12/5/2012 | 5:31:21 PM
re: Ex-Cisco Execs Form Cable Set-Top Startup


And margins here will, of course, be thinner than in a software-centric business like n2Broadband.

gconnery
50%
50%
gconnery,
User Rank: Light Sabre
12/5/2012 | 5:31:20 PM
re: Ex-Cisco Execs Form Cable Set-Top Startup


Yeah, I don't get why somebody would enter this business now.  The business is already in decline as margins have been reduced to nothing even for the major players.  Samsung has a chance because they're fully integrated, but these guys are either going to have to use commodity silicon (at high prices because of their low volume) or develop their own ASIC (on $1.5M... hah, they'll be out of business before they get it done, VCs don't have the stomach for ASIC development anymore) which will take forever.


And the whole innovation thing?  Please, Motorola and Cisco had lots of good ideas for innovations.  But the cable companies don't want any of that.  They want the cheapest possible set top and they want it to be a commodity at multiple vendors built to THEIR specifications.


These guys are going to have their heads handed to them.

Soupafly
50%
50%
Soupafly,
User Rank: Light Sabre
12/5/2012 | 5:31:18 PM
re: Ex-Cisco Execs Form Cable Set-Top Startup


I think your all missing the point.


These guys are using a "virtual company" model to create a set of competitive platforms. They are not saying they are going to build silicon themselves or design and build a ene-to-end integrated platform including components.


It seems from the piece and quick read of the website that they are going to work with the chinese & global ODM/OEM and Silicon communities to define, spec, manufacture & build a box thats targetted & relevant to the MSO community.


My Impression of the Key ingredients they offer are;


1) Expertise in "anchor customer" acquisition & execution.


2) Platform depth & breadth encompassing the silicon, hardware & software layer reqs.


3) Domain Expertise; These guys KNOW this industry. They have contacts & credibility to burn.


My key concern is whether they can consistently add value over various generations of their platform?


Fail to do that and what you guys predict will happen quickly. They will enter a battle to the bottom "war" of attrition. Very few exit such battles, fewer still with no bruising.


OR; They could be planning to exit the business by that point, hence the VC cash for a spin-out / in vehicle to a vertical or horizontal integration player.


Time will tell...


SF

Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 5:31:13 PM
re: Ex-Cisco Execs Form Cable Set-Top Startup


Although iNovo has someone in-house with lots of ASIC expertise, I didn't get the impression that they'll be making chips, particularly now that cable's got a variety of sources now for those components, including Broadcom, Marvell, Entropic (thanks to the purchase of Trident's assets), and Sigma Designs, to name just a few. But it will be interesting to see if they can indeed bring these MSO-specified products to market for less than the incumbent suppliers. It stands to alter the business model a bit if they can pull it off. And while the long-term of the STB is in doubt as more of that functionality becomes virtual inside connected devices, i still think the death of the STB is still a ways out.  The nearer term question is whether suppliers like Cisco and Motorola really want to stick it out in that market, or if the market conditions make this a great opportunity for a much smaller company like iNovo, with the relationships and the know-how,  to step in and be successful. JB


 

Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Interviews
The New Wave of IP + Optical Integration

11|21|14   |   04:29   |   (7) comments


At the Alcatel-Lucent Technology Symposium, Heavy Reading senior analyst Sterling Perrin talks about how SDN has reshaped the discussion around packet and optical integration.
LRTV Huawei Video Resource Center
Huawei Highlights at BBWF 2014

11|20|14   |   3:40   |   (1) comment


Broadband World Forum is one of the world's largest telecoms, media and technology events with over 7,800 senior executives from across the globe converging on Amsterdam every year to identify the Next Big Thing. BBWF is an exciting place to meet the entire industry under one roof and identify the latest in network innovation, service optimization and customer ...
LRTV Huawei Video Resource Center
How Will BCMS Stimulate Margin for Broadband Operators?

11|19|14   |   6:52   |   (0) comments


In BBWF 2014, Liu Shuqing emphasizes the value of FMC 2.0 based full service experience by throwing light on the BCMS solution. The underlying principle of this innovative technique is to create network robustness and driving network from connection oriented to ACE – BAND oriented infrastructure, in which applications, cloud, and user experiences will be an asset ...
LRTV Huawei Video Resource Center
SingleFAN3.0: Better Connected Experience

11|19|14   |   3:06   |   (1) comment


At the BBWF 2014, David Hu, the VP of Huawei Access Network Product Line, talked about the future of access networks – SingleFAN3.0: faster broadband, wider coverage, and smarter connection.
LRTV Interviews
Basil Alwan Interview: The Road to Cloud

11|19|14   |   09:09   |   (0) comments


Alcatel-Lucent's head of IP and Transport talks about the migration towards a web-like networking environment, the impact of the cloud, SDN and NFV, and the yet-to-be-announced FP4 chip.
LRTV Documentaries
FairPoint Makes a Fair Point About Analytics

11|19|14   |   1:56   |   (1) comment


The US-based communication service provider gets to grips with advanced analytics, tackling data and breaking down the silos within its own business.
LRTV Documentaries
Analytics Lets C Spire Get to Know Subs

11|19|14   |   3:01   |   (2) comments


It's all about the data for US operator C Spire as it uses analytics to personalize its customer service down to individual subscribers.
LRTV Interviews
Nuage Branches Out With SDN: CEO Interview

11|17|14   |   9:32   |   (0) comments


Sunil Khandekar, CEO of Alcatel-Lucent's SDN-focused unit Nuage Networks, talks about the opportunities and challenges of breaking out of the data center into wide-area networks.
Light Reedy
Telecom Analytics Grows Up

11|14|14   |   1:15   |   (4) comments


The big data analytics debate has moved on from a year ago, with some experts suggesting it's no longer a technology challenge.
LRTV Huawei Video Resource Center
Huawei Compass

11|14|14   |   3:17   |   (1) comment


At OpenStack Summit 2014, Shuo Yang, Huawei Principal Cloud Infrastructure Architect introduced Huawei Compass, the software tool for solving customers' problems on the journey of OpenStack Cloud.
LRTV Huawei Video Resource Center
Huawei's Cloud Strategy in European Region

11|14|14   |   2:56   |   (1) comment


At OpenStack Summit 2014, Dr. Gotz, CTO of Huawei IT in European Region introduced Huawei's cloud strategy in European region.
LRTV Huawei Video Resource Center
Huawei's Contribution on OpenStack

11|14|14   |   5:58   |   (0) comments


At OpenStack Summit 2014, Dennis Gu, Huawei Chief Architect of Cloud Computing introduced the relationship between OpenStack and cloud computing, and Huawei's contribution on OpenStack.
Upcoming Live Events
December 2, 2014, New York City
December 3, 2014, New York City
December 8-10, 2014, Reykjavik, Iceland
February 12, 2015, Atlanta, GA
April 14, 2015, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
Hot Topics
Bell Labs Chief Slams 'Toy' Networks
Robert Clark, 11/19/2014
$38.3M: Ain't That a Kik in the SMS
Sarah Reedy, Senior Editor, 11/20/2014
Do You Have a 2020 Vision?
Dennis Mendyk, Vice President of Research, Heavy Reading, 11/21/2014
The New Wave of IP + Optical Integration
Ray Le Maistre, Editor-in-chief, 11/21/2014
Google, AT&T, BT Unite on Network Data Models
Carol Wilson, Editor-at-large, 11/20/2014
Like Us on Facebook
Twitter Feed