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Lincroft, NJ
reply to telcodad

Re: [STB] Cisco thinking of getting out of the set-top box busin

In a recent interview with the The Atlanta Journal-Constitution, Cisco CEO John Chambers said that they still have “a huge commitment to video”:

Cisco won’t drop video, says CEO
The Atlanta Journal-Constitution - March 24, 2012

"Six years after Cisco Systems bought Scientific Atlanta, high-tech giant Cisco says its metro Atlanta acquisition is critical to its efforts to profit off the rising tide of video streaming around the globe.

Cisco has “a huge commitment to video,” John Chambers, Cisco’s longtime CEO and chairman, said in a telephone interview recently after talking to about 1,000 Cisco employees near its Lawrenceville operation, which designs set-top boxes and related devices for cable TV service. The devices are manufactured outside the U.S.

Chambers said video-related traffic is growing exponentially and is expected to account for 91 percent of Internet data flow within three years. Cisco’s Lawrenceville unit will design much of the hardware and software that handles that traffic.

To play a central role in that growing business, Cisco has been reaching beyond the set-top box business into other software and hardware pieces of an ever-expanding range of cable, telephone and wireless networks. The goal: to supply many pieces of intelligent networks that allow people and businesses to view television and other types of video where ever they happen to be, whether in their homes, commuting or on vacation or business trips.

“This isn’t [about] set-top boxes. It’s how you bring video into the home, into wherever,” said Chambers. “This is right now our sweet spot for where we want to go.”

That is a very different message from what folks at the former Scientific Atlanta operation have been hearing in recent months.

Rumors have swirled that San Jose, Calif.-based Cisco may want to sell all or part of the operation, now called Cisco’s Service Provider Video Technology Group. Several news stories recently speculated that Cisco wants to shed relatively slow-growing, less profitable businesses such as set-top boxes.

Cisco is currently the second-largest producer of the devices, which tune, decode and in some cases store cable TV shows for later viewing."