Cisco Seeks Buyer For Linksys Unit

Cisco has stated this week that it will no longer service its previously discontinued video conferencing UMI Telepresence gear. UMI customers received a message that Cisco will permanently end UMI service on Jan 31, 2013. 

Cisco's UMI Telepresence solution enabled video conferencing in high definition from plasma TVs in a home office, and was introduced a few years ago. However, within six months of the product being introduced, Cisco stated that it would withdraw the UMI and the flip camera it came with.

It has emerged that as of January 31,2013, the Cisco UMI service will be discontinued, but users can utilize the service until that time. Users can request compensation from the “refund” program, and videos saved on its website can be downloaded. Those users who have paid fees beyond the end date will receive an automatic refund.

MarketWatch, a financial site, stated on Monday that Barclays PLC (a banking group) has been employed in the quest to find a buyer for the Linksys unit. It is expected that Cisco will lose $500 million due to the purchase price decreasing since 2003.

It can be argued that the acquisition of Linksys was imperative to the small business strategy of Cisco over several years, and that the latter company procured around $100 million with the small business unit through its own building in Milpitas, California.

The high-end Cisco phones and low-end solution for small businesses were recognized as the gold standard for larger customers, and this is true particularly of Linksys. Routers, switches and other IT infrastructure products also come as part of the Linksys brand.

Furthermore, MarketWatch's announcement does raise questions about the small business strategy of Cisco and how it intends to progress from this incident. (CY) Link