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Cisco to Pack Retail Shelves
Complex router maker enters consumer electronics market next to Panasonic, Bose.
January 16, 2006
Cisco Systems, the networking giant known for complex products that require a high level of expertise to operate, is getting ready to enter the consumer electronics market with products such as radios, telephones, and home theater devices.
According to the Financial Times, Cisco is making this quantum leap because the Internet has become the common denominator among these previously stand-alone devices. Cisco’s routers account for a significant piece of the Internet backbone.
Cisco already has a presence in consumer electronics retail outlets through Linksys, its home networking device arm. Cisco acquired the device maker for $500 million during 2003.
But Cisco is looking for a bigger profile in the consumer market. One of the company’s executives believes the company has a number of advantages over traditional consumer electronics companies such as Sony, Bose, and Panasonic.
According to Charles Giancarlo, the head of the company’s Linksys home networking division, Cisco’s relationship with portal companies such as Google and Yahoo gives it a leg up on traditional consumer electronics firms.
Set with Set-tops
But Cisco’s announced intention to purchase Scientific-Atlanta, the second-largest set-top box maker in the United States, could be almost as crucial in a consumer electronics push. The purchase of Scientific-Atlanta, if it gets past its regulatory hurdles, would give Cisco a primary position in the home: near the TV set.
With the set-top box as a conduit, the company has access to what is arguably the centerpiece of home entertainment.
Cisco said during November it had reached a deal to purchase Scientific-Atlanta for $6.9 billion in cash. It was the largest deal ever done by San Jose, California-based Cisco since it acquired Cerent in 1999 for $7.3 billion.
Cisco is not the only large U.S. networking firm that sees the linkages between the Internet and the consumer market. Less than two weeks ago, Verizon Communications, the second-largest telecommunications carrier in the U.S., said it would add its brand name to home networking products that would be carried by a number of nationwide retail outlets.
Verizon packages devices such as modems, routers, and other products as part of its DSL services, but the company markets the products under their original manufacturers’ brand names.
During the spring Verizon plans to sell an array of home-networking equipment made by the low-cost manufacturer Belkin under the Verizon brand name.
Complex router maker enters consumer electronics market next to Panasonic, Bose.
January 16, 2006
Cisco Systems, the networking giant known for complex products that require a high level of expertise to operate, is getting ready to enter the consumer electronics market with products such as radios, telephones, and home theater devices.
According to the Financial Times, Cisco is making this quantum leap because the Internet has become the common denominator among these previously stand-alone devices. Cisco’s routers account for a significant piece of the Internet backbone.
Cisco already has a presence in consumer electronics retail outlets through Linksys, its home networking device arm. Cisco acquired the device maker for $500 million during 2003.
But Cisco is looking for a bigger profile in the consumer market. One of the company’s executives believes the company has a number of advantages over traditional consumer electronics companies such as Sony, Bose, and Panasonic.
According to Charles Giancarlo, the head of the company’s Linksys home networking division, Cisco’s relationship with portal companies such as Google and Yahoo gives it a leg up on traditional consumer electronics firms.
Set with Set-tops
But Cisco’s announced intention to purchase Scientific-Atlanta, the second-largest set-top box maker in the United States, could be almost as crucial in a consumer electronics push. The purchase of Scientific-Atlanta, if it gets past its regulatory hurdles, would give Cisco a primary position in the home: near the TV set.
With the set-top box as a conduit, the company has access to what is arguably the centerpiece of home entertainment.
Cisco said during November it had reached a deal to purchase Scientific-Atlanta for $6.9 billion in cash. It was the largest deal ever done by San Jose, California-based Cisco since it acquired Cerent in 1999 for $7.3 billion.
Cisco is not the only large U.S. networking firm that sees the linkages between the Internet and the consumer market. Less than two weeks ago, Verizon Communications, the second-largest telecommunications carrier in the U.S., said it would add its brand name to home networking products that would be carried by a number of nationwide retail outlets.
Verizon packages devices such as modems, routers, and other products as part of its DSL services, but the company markets the products under their original manufacturers’ brand names.
During the spring Verizon plans to sell an array of home-networking equipment made by the low-cost manufacturer Belkin under the Verizon brand name.
Dr. Mordrid
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