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Is Cisco's lunch about to be eaten by innovative startups?

Even though Cisco paid News Corp $5 billion in cash last month, yesterday an important News Corp subsidiary deployed Skype technology instead of Cisco TelePresence.

Fri, 8/24/12 - 9:53pm    View comments

Earlier this month I blogged:

Why are Cisco's TelePresence sales in decline?

Subsequently, the poor results of Cisco's Q4'FY12 TelePresence sales confirmed my blog's thesis:

"It appears Cisco has missed the market transition in videoconferencing. Cisco and Polycom are no longer the competition in videoconferencing, the competition are the innovative startups."

Then this week Ben Worthen of The Wall Street Journal further confirmed my above thesis:

Start-Ups Emerge as Tech Vendors of Choice

"Mr. Blanchette is one of many CIOs who are now shifting more of their spending to smaller tech providers. Many of these executives, who hold the purse strings to their company's tech budgets, said smaller companies are now quicker to embrace new computing models, have products that are easier to deploy and tend to respond better to customers than the giants."

Last month Cisco closed its $5 billion cash purchase of the News Corp subsidiary, NDS.

Meanwhile yesterday News Corp subsidiary, The Wall Street Journal, featured the below video which deployed Skype technology.

I mean, it can't be good news for Cisco (no pun intended) when it just paid News Corp $5 billion in cash and now an important News Corp subsidiary is deploying Skype technology instead of Cisco TelePresence.

View the Wall Street Journal - Skype video:

Related story:

Cisco's 2Q12 videoconferencing revenue dropped -23.7% year-over-year
 

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