Cisco Systems CEO John Chambers says his company is deploying a heavy push into the consumer electronics sector. Get ready for DVD players and set top boxes with a network flair only Cisco can deliver. The question now is - will Cisco Systems name or one of its acquisitions grace the face plate of its upcoming household gadgets? Consumers will probably see all of the above so Cisco’s CE push could be a mixed bag of varying quality products.
After an impressive third quarter results that saw sales jump 21%, Chambers remains guarded about upcoming sales growth calling for 16% this quarter and a long term target of only 10% to 15%. These grounded projections sent Cisco’s stock on a short term lapse.
Linksys and Scientific Atlanta
Cisco is no longer a stranger to the consumer electronics market, having purchased two relatively strong names in that market in the last few years.
Anyone who has bought some budget networking gear by Linksys or held captive by local cable operators and forced to endure a set top box by Scientific Atlanta knows neither name is synonymous with quality. However Cisco Systems own branded networking gear is among the elite in the industry. You won’t see Cisco’s name pulling dubious consumer plays like releasing products that claim the Draft N specification before its time.
According to Chambers Cisco is intent on stepping well beyond cable boxes with PVR and wireless routers.
One of the interesting directions Cisco wants to take is to blend set top box functions with products that do multiple jobs in one device. Take a TV cable box, built in PVR with the ability to not only connect to the Internet, wireless of course, but also act as a router and distribute your household wi-fi hotspot. You get automatic cool points just for contemplating such a device. Now throw in a DVD player and the ability to interact with online content distributors such as iTunes, YouTube, MSN.
The only thing we can hope for now is that when these hot new devices come down the pipe they’re build in the tradition of Cisco, not what we’ve seen from the likes of Linksys or Scientific Atlanta. As an owner of one of Scientific Atlanta’s latest and deeply troubled HD-PVR-Cable boxes, the name doesn’t instill confidence. If the sexy new devices bears the Cisco they’re sure to have air of respect on store shelves. Don’t start on Linksys! My household network has gone through Linksys routers like cake a birthday party. I currently use a non-Linksys competitor that has worked with relative stability for months.