The Dumb Flip?

2:10 PM -- SAN DIEGO -- OFC/NFOEC 2009 -- Surya Panditi doesn't run the part of Cisco Systems Inc. (Nasdaq: CSCO) that's going to own the Flip cameras. But he did drop a hint as to how Cisco might handle the products after the acquisition of Pure Digital Technologies Inc. (See Cisco's Latest Buy: Flippin' Sweet.)

Panditi was giving the morning keynote at the The Optical Society (OSA) Executive Forum, a pre-OFC/NFOEC conference. And in talking about the creation of new services, he said the necessary smarts need to reside in the network.

"Any concept of intelligence in the endpoints doesn't scale," he said. "You have to be able to provide intelligence in the network in order to be able to provide all these services."

He wasn't talking about Pure Digital there, but the point -- one Cisco has made repeatedly over the years -- might be applicable. There's a temptation, given something as flashy as an iPhone, to turn the phone into the center of the universe.

In that sense, Cisco wouldn't want to turn the Flip into another iPhone. It might highly network the cameras; that would be my guess as to why Cisco would bother acquiring the company in the first place. But moving the service creation smarts into the cameras doesn't sound like part of the plan.

— Craig Matsumoto, West Coast Editor, Light Reading

NorthernRights 12/5/2012 | 4:08:22 PM
re: The Dumb Flip? It's just a typical case of a Cisco executive (Ned Hooper) failing in his effort to spur Cisco's consumer revenues. So what do you do "John, I think we need to buy this company Pure Digital." At about a price/sales ratio of 7 times, it is too expensive. It's just a matter of time before the next iPhone has capability to capture and record and upload HD video which will render the Flip camera obsolete. Believe me, Cisco has no "grand vision" here! They just have too much cash and some executives want to spend it to cover their arse!
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