The company has announced a realignment of its business operations that will result in it scaling back its consumer facing divisions. The Flip, which was a red-hot item just a couple of years ago, is the highest profile casualty of the move. Also being cut is the company’s Eos media solutions business.
The decision to stop selling the small HD video cameras comes as Cisco instead plans to focus on home networking products (like Linksys routers).
“We are making key, targeted moves as we align operations in support of our network-centric platform strategy,” said CEO John Chambers in a statement. “As we move forward, our consumer efforts will focus on how we help our enterprise and service provider customers optimize and expand their offerings for consumers, and help ensure the network’s ability to deliver on those offerings.”
The Flip is ultimately a victim of the iPhone. While Flip was a must-have item two and three years ago, the inclusion of high quality video recording on smart phones has become so commonplace that the standalone camera had no room to grow.
The shutter of the Eos media solutions business, which was a backend tool for media and entertainment companies to quickly and easily build sites and social network homes for artists and projects, was considered a technical success, but struggled financially.
The division had a relationship with Warner Music as well as the Travel Channel, All Access Today and 10th St. Entertainment, but its mission was not in line with Cisco’s primary focus.
Dan Scheinman, a 10-year Cisco vet who ran Eos, announced via Twitter that he would be leaving the company. He previously was in charge of Cisco’s acquisition arm, leading the buyout of companies including Linksys and Scientific Atlanta.