Cisco Suffering From Cheap Technology
Cisco left with the basics keeping it afloat.
Cisco (NASDAQ: CSCO) is suffering at the hands of new products the consumer can either use for free or at rock-bottom prices, reports author Douglas A. McIntyre on Wall St. With so many once promising business ventures under the belt of John Chambers , CEO of Cisco, cheap technology has taken its toll and left the company very little to show for his diversification beyond his enterprise router, storage and switch businesses.
"Cisco purchased video conference firm WebEx in 2006 for $3.2 billion. The low-end WebEx products for small business and home use sell for $49.99. Cisco's home umi video commerce products sells for $599.99. These products compete with free services like Skype video. WebEx and Ciscos other home video solutions also face many free competitors. Even smartphones can be used for two-way video communication.