Will Cisco Unload Linksys?
Why Cisco should keep the consumer networking segment despite declined earnings.
Although Cisco Systems (NASDAQ: CSCO) has not made any official statement, it is speculated that the company wants to sell two segments of its business: the consumer networking Linksys brand and WebEx. Author Samara Lynn, in her article on PC Mag, discusses the various reasons why the company should not give up on its consumer networking segment in spite of declined earnings and pressure from stockholders.
"Cisco reigns in the enterprise networking space and has for a long time. Undoubtedly Cisco's R&D department is tops when it comes to security, scalability and management of huge enterprise networks. That knowledge, incorporated with Linksys' solid track record in the consumer network space, makes for a company that has the capability of delivering business-class capabilities at an affordable price for consumers and the prosumer marketwhich often purchases home network products for business use.