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Cisco’s Consumer Strategy: Media Holds Key To Success

by David Mercer | 4月 09, 2009

Much of the commentary around Cisco’s push into consumer devices has focused on its wireless audio system, home media hub and, most recently, the newly acquired Flip Video business. But as we discuss in our new report published today - Cisco's Consumer Strategy: Will the Network Transform the Digital Home?  – the company’s long term success is likely to depend as much, if not more, on the less high profile media strategy as on its forays into consumer electronics. Cisco’s Media Solutions Group (MSG) was formed more than two years ago but only came out into the open at the beginning of this year. Its objective is to sell the benefits of network-based internet media delivery platforms to content owners. It claims to save content owners from a great deal of the pain usually associated with establishing and maintaining content-focused websites. Critically, it also intends to be synergetic with Cisco’s consumer devices so that problems associated with content re-purposing and re-formatting across multiple devices, something which is a real cost concern to media companies, can be minimised. MSG’s core offer is the Eos platform, and you can see it in action at allseanpaul.com. Our report finds that Cisco has a good opportunity of reaching annual revenues from consumer activities that will put the company in a league similar to some of today’s leading technology brands. It will surprise some that the company already does business in the region of $4bn in consumer related sectors through its set-top box and home networking operations. With a substantial cash pile to support further acquisitions, and with the rest of the consumer electronics industry suffering from the global economic turmoil, it is much too soon to write off Cisco’s chances of sustaining an assault on the market leaders over the coming years. Twitter: twitter.com/DavidMercer_SA Client Reading: Cisco's Consumer Strategy: Will the Network Transform the Digital Home? Add to Technorati Favorites Buzz up!vote now submit to reddit
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