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Cisco's $16 Billion Consumer Opportunity Rests On Medianet Vision
Boston, MA - 16 April 2009 - Cisco's plans to become a major consumer technology brand rest as much on its Eos medianet business as its new Wireless Home Audio systems and Flip Video devices, according to, "Cisco's Consumer Strategy: Will the Network Transform the Digital Home?," the latest report from the Strategy Analytics Digital Consumer Practice.
"Cisco's strategy is to transform the consumer media and technology sectors by using the power of internet technologies to simplify the creation and distribution of content to connected devices," says David Mercer, Principal Analyst and the report's author. "The company's longer term success will also depend on its ability to combine organic growth with carefully targeted acquisitions over the next five years."
The report finds that Cisco has a good opportunity to reach annual revenues of $16 Billion from consumer-related businesses which will put the company in the same league as some of today's leading technology brands. Cisco already generates revenues in the region of $4 Billion in consumer-related sectors through its set-top box and home networking operations.
With a substantial cash pile to support further acquisitions, and with the traditional consumer electronics industry suffering from the global economic turmoil, Strategy Analytics concludes that it is much too soon to write off Cisco's chances of sustaining an assault on the market leaders over the coming years.
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