Optical/IP Networks

Cisco Flips on Consumer Business

Cisco made some definitive moves Tuesday to help out its stagnant stock and bloated management structure by announcing the closure of its Flip video camera business, the "refocusing" of its home networking division and the integration of its "Umi" consumer video product into its Business TelePresence line.

Additionally, Cisco said it will figure out other uses for Eos -- its media hosting business -- within the company.

Cisco says these moves will result 550 job losses and charges against earnings that are "not expected to exceed $300 million during the third and fourth quarters of fiscal 2011."

While these moves aren't exactly a surprise, they do collectively show just how far flung Cisco has become over the years, drifting from its core infrastructure businesses to more consumer gadget businesses and services, where the likes of Sony Corp. (NYSE: SNE), Apple Inc. (Nasdaq: AAPL), D-Link Systems Inc. , Pace Micro Technology and others already have solid footing. We'll have more reporting and analysis on these moves over the next several days.

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— Phil Harvey, Editor-in-Chief, Light Reading

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