Cisco Closing Flip - Shrewd?
In this widely quoted article by Electronic Products and Technology it is being said that Cisco's decision to close its Flip camcorder group was a shrewd decision. Other posts have called the decision courageous. Was it really? I don't think so. In my view it was simply time to come to terms with a bad investment decision and to cut their losses.
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Cisco is convinced (and I agree) that video is an increasingly important aspect of communications technology and human interaction. Cisco's TelePresence and its acquisition of Tanberg are prime examples of Cisco's innovation and vision relative to the market impact of video.
However, Cisco seemed to overlook the fact that video capabilities are integrated into many multi-function consumer devices. My camcorder has been in the closet for at least a couple of years. The video capabilities built into smartphones, point and shoot cameras, SLRs and tablets have made single-purpose consumer video recording devices obsolete.
While Cisco's insight, product development and marketing of products for enterprise is second to none, products like the Flip and ūmi suggest that the company can do a better job at gauging trends and demands in the consumer space.
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