Mobile Tech Today

CIO Today Network Sites:   Top Tech News  |   CIO Today   |   Mobile Tech Today   |   Data Storage Today
News & Product Reviews for Mobile Tech Users
Neustar, Inc.
Protect your website & network
using real-time information & analysis

www.neustar.biz
Wednesday, April 16th 
Real-time info services with Neustar
Trending Topics:   Security Heartbleed Big Data Cloud Computing Windows XP Data Centers OS X Mavericks
Home
Laptops & Tablets
Mobile Phones
Mobile Gadgets
Mobile Apps
BYOD & MDM
iPad
Mobile Industry News
Wireless Connectivity
Wireless Security
GPS & Maps
MTT Press Releases
 
Free Newsletters
Top CIO News
 
Mobile Tech Today
 

Wireless Connectivity

Cisco Sells Off Linksys Home Network Unit to Belkin

Cisco Sells Off Linksys Home Network Unit to Belkin
January 25, 2013 11:03AM

Bookmark and Share
With the purchase of Linksys, Belkin will own about 30 percent of the U.S. retail home and small-business networking market. And the Linksys brand won't die out. Belkin plans to keep it alive and even offer support for Linksys products sold under Cisco's watch. In other words, Belkin will honor all valid warranties on current and future Linksys product sales.

APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.

Cisco is selling its Home Networking Business unit to Belkin. The line includes the Linksys brand, and the acquisition includes Cisco employees. Financial terms of the deal were not disclosed.

Belkin's motives for purchasing Cisco's Home Networking Business unit are clear. Chet Pipkin, CEO of Belkin, put it this way: "Belkin's ultimate goal is to be the global leader in the connected home and wireless networking space, and this acquisition is an important step to realizing that vision."

After the transaction closes, Belkin will own about 30 percent of the U.S. retail home and small-business networking market. And the Linksys brand won't die out. Belkin plans to keep it alive and even offer support for Linksys products sold under Cisco's watch. In other words, Belkin will honor all valid warranties on current and future Linksys product sales.

Leveraging the Network

Pipkin acknowledged Linksys for its pioneering work in wireless connectivity and its strong brand. Of course, Linksys did some of that work pre-Cisco. Cisco purchased Linksys in 2003 for $500 million. Cisco made heavy investments after the acquisition.

In fact, just days ago, Cisco announced the expansion of the Linksys Smart Wi-Fi portfolio with three new 802.11ac powered Smart Wi-Fi routers, a new compact 802.11ac USB adapter, new features and new Smart Wi-Fi apps. Cisco announced a new cloud platform for Linksys last summer and got the developer community involved in designing apps and services for Linksys last spring.

Belkin and Cisco are developing a strategic relationship that includes retail distribution, strategic marketing and products for the service provider market. Pipkin expects Belkin to create new opportunities for consumers, distribution partners and resellers, and promises to have the strongest retail presence in the U.S. networking marketplace.

"Belkin also will have access to a large installed base that will be able to upgrade their networking environment to take advantage of new technologies in the smartphone, tablet, notebook and home automation arenas," he said. "Additionally, Linksys will enhance Belkin's capabilities to meet the needs of the service provider space and small-business users."

Cisco's Timing Good

Zeus Kerravala, principal analyst at ZK Research, told us he's not surprised that Cisco would sell off Linksys, given Cisco's stated intention to stick to its core business. Linksys, he said, stuck out like a sore thumb.

"Cisco likes to sell architecturally -- that means multiple products make up the solution -- and even the set-top box is part of the cable architecture, but Linksys isn't really part of anything," Kerravala said.

Although Kerravala understood Cisco's reasoning for buying Linksys in 2003 -- there was plenty of debate 10 years ago about how the home network would be built, and talk about PCs being at the center of home entertainment systems -- the reality is that many assets are moving to the cloud. The only role the Linksys router plays right now is one of connectivity.

"Linksys is rapidly becoming a commodity. From Cisco's standpoint the timing was good. They still have a large share and a premium product," Kerravala said. "But I don't think that would have lasted forever, especially for a company that de-emphasized the consumer business. So it was time to move along and it served its purpose and now the company is heading in a different direction."

The transaction is subject to various standard closing conditions and is expected to close in March.

Tell Us What You Think
Comment:

Name:



 Wireless Connectivity
1. FireChat Ignites New Way To Talk
2. Will Google Offer a Wireless Service?
3. EU Panel Approves Net Neutrality Rules
4. Avaya Ends Network Waiting Game
5. HP Rolls Out New SDN Products




 Most Popular Articles
1. Will Satya Nadella Launch an Office for iPad?
2. Google Unveils Android Wear for Smart Watches
3. Microsoft Targets Evernote with Free OneNote, New Mac Version
4. HP Rolls Out New Software-Defined Network Products
5. Smartphone Kill Switch Could Save Users $2.6B a Year


Have an informed opinion on this story?
Send a Letter to the Editor.
We want to know what you think.
Send us your Feedback.

 Related Topics  Latest News & Special Reports

  Amazon 3D Smartphone Pics Leaked
  Zebra Buys Motorola Enterprise Biz
  Google's Modular Phone Set for January
  CTIA Caves, Offers Kill Switch Plan
  Motorola Sells Enterprise Biz to Zebra

 Technology Marketplace

Business Intelligence
Get real-time, cloud-based information services with Neustar.
 
Cloud Computing
BMC's I.T. solutions unleash the power of your business
Next Generation Data Center Is Here! Vblock™ Systems from VCE
 
Contact Centers
HP delivers the future of the contact center with HP Qfiniti 10.
 
Data Storage
Next Generation Data Center Is Here! Vblock™ Systems from VCE
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
Barium Ferrite (BaFe) is the future of tape.
 
Enterprise Hardware
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
Barium Ferrite (BaFe) is the future of tape.
 
Enterprise I.T.
BMC's I.T. solutions unleash the power of your business
 
Hardware
Protect your network with APC Smart-UPS battery backup
 
Network Security
Protect your network with APC Smart-UPS battery backup
 

Network Security Spotlight
IBM Offers Security, Disaster Recovery as SoftLayer Service
New disaster recovery and security services for SoftLayer clients are being added by IBM. Big Blue said the new capabilities will speed cloud adoption by alleviating concern over business continuity.
 
How To Beat the Heartbleed Bug
Heartbleed headlines continue as IT admins scramble for answers no one has. Early reports of stolen personal data, including 900 social insurance numbers in Canada, are starting to trickle in.
 
After Heartbleed, OpenSSL Calls for More Support
The president of the OpenSSL Foundation says more support is needed from companies and governments that use its software so that it can better spot and fix flawed pieces of code such as Heartbleed.
 

Enterprise Hardware Spotlight
Vaio Fit 11A Battery Danger Forces Recall by Sony
Using a Sony Vaio Fit 11A laptop? It's time to send it back to Sony. In fact, Sony is encouraging people to stop using the laptop after several reports of its Panasonic battery overheating.
 
Continued Drop in Global PC Shipments Slows
Worldwide shipments of PCs fell during the first three months of the year, but the global slump in PC demand may be easing, with a considerable slowdown from last year's drops.
 
Google Glass Finds a Home in Medical Education, Practice
Google Glass may find its first markets in verticals in which hands-free access to data is a boon. Medicine is among the most prominent of those, as seen in a number of Glass experiments under way.
 

Mobile Technology Spotlight
Amazon 3D Smartphone Pics Leaked
E-commerce giant Amazon is reportedly set to launch a smartphone after years of development. Photos of the phone, which may feature a unique 3D interface, were leaked by tech pub BGR.
 
Zebra Tech Buys Motorola Enterprise for $3.45B
Weeks after Lenovo bought Motorola Mobility’s assets from Google for $2.91 million, Zebra Technologies is throwing down $3.45 billion for Motorola’s Enterprise business in an all-cash deal.
 
CTIA Caves, Volunteers Kill Switch Plan
After bucking against the concept of a smartphone kill switch, the CTIA just announced the “Smartphone Anti-Theft Voluntary Commitment” to thwart smartphone thefts in the U.S.
 

Navigation
Mobile Tech Today
Home/Top News | Laptops & Tablets | Mobile Phones | Mobile Gadgets | Mobile Apps | BYOD & MDM | iPad
Mobile Industry News | Wireless Connectivity | Wireless Security | GPS & Maps | MTT Press Releases
Also visit these Enterprise Technology Sites
Top Tech News | CIO Today | Mobile Tech Today | Data Storage Today

Services:
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About CIO Today Network | How To Contact Us | Article Reprints | Services for PR Pros (In partnership with NewsFactor) | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 Mobile Tech Today. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.