Cisco is right to overhaul its consumer business

Opinion

Cisco is right to overhaul its consumer business

I am hugely pleased to see that Cisco is finally taking action over its struggling consumer businesses.

It today announced a major restructure that will see some lines axed and others, such as Linksys and home telepresence solution umi, realigned with Cisco's service provider offerings.

Although the loss of the Flip video camera lines is sad - I own one and it's really a great little gadget - and the loss of 550 jobs worldwide is not to be taken lightly, I think Cisco has absolutely done the right thing here.

Cisco is not a consumer company and it should not have tried to be.

It had no idea how to approach the market, as I wrote in February, it was becoming distracted from its core business and the market was beginning to punish it for this.

From what we know at this point in time, the refreshed strategy seems to hang on aligning the consumer technologies with the more business-focused units, meaning that in future it will be service providers and carriers providing Cisco consumer technology into the home.

I think and hope that this realignment will pay off.

Cisco partners should welcome the vendor's renewed commitment to its switching and routing business, and I am sure they will.

This was first published in April 2011

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