The first business cuts Cisco Systems have announced, and the Flip video camera is one of the first things to go.
Cisco said Tuesday it will leave parts of the business of consumer electronics, and that strategically realigns its business to focus on five main areas: routing, switching and services, collaboration, architectures, and video. One of the first victims of this business plan was the Flip Video, Pure Digital Cisco bought two years ago for U.S. $ 590 million.
Cisco said in a press release that “support existing customers FlipShare and is associated with a transition plan.” But the company will stop selling the small video camera. Instead, Cisco plans to refocus its consumer business in home networking technologies such as Linksys, Cisco and integrate Umi home video conferencing product in their business offering telepresence.
“We are making key moves, aimed at aligning their operations to support our strategy of network-centric platform,” said CEO John Chambers said in a statement. “As we move forward, our consumer efforts will focus on how we help our enterprise customers and service providers to optimize and expand their offerings to consumers and help ensure network capacity to meet the offerings.”
Cisco’s decision to shutter the Flip video company should not be a surprise. The company bought Pure Digital video cameras and high definition is becoming standard on mobile devices. Today, smart phones like the iPhone, offers high-definition video and ease the burden of video directly to social networking sites like Facebook and YouTube.
Last week, Salas posted a blog on the internal Web site the company acknowledges that the company has “disappointed and confused our investors to our employees.” And he promised to get back on track Cisco. Salas said that “we will take bold steps and we will take tough decisions.”
The Flip video business is not the only leader who is on site. Cisco also said it will close the Eos media business solutions and the use of technology in other parts of the business. Eos’s business was directed at entertainment companies. It was a set of technologies and development platform that helped bands and record labels to create Web sites.
The head of this division, Dan Scheinman Twitter announced on Tuesday that will leave Cisco after more than a decade in the business. Previously, he led Cisco’s Scheinman and acquisitions helped the company acquire more than 40 companies, including Lynksys and Scientific Atlantic.
In his tweet Scheinman Eos said it had achieved technically, but was still years away from economic success.