In a move to grapple the slouching demand for its networking equipment, Cisco Systems Inc. is holding talks with phone and cable carriers over products and services that allow users to conduct videoconferences via their television sets.
Besides video chats, consumers can also exchange messages and leave videos for friends through this offering, said Ned Hooper, head of the consumer business at Cisco.
Built on Cisco’s TelePresence corporate-videoconferencing system, the new product will hit the market within the next 12 months.
In its pursuit, Cisco is expected to face challenges from services such as EBay Inc.’s Skype and competitions from consumer brands such as Apple Inc., which offers videoconferencing through its iChat service, and Google Inc., whose Gmail program includes video chat.
Cisco is increasingly making way into the consumer market, starting with the taking over of Pure Digital Technologies Inc., maker of the Flip video camera, for $590 million in May, with the intention of using its software to enlarge in the market for home-networking gear, camcorders and video applications.
“There’s a big opportunity for us. You will start to see very big growth numbers on top of the base consumer business we report every quarter,” added Hooper. |