Cisco reportedly has hired Barclays to find a buyer for its Linksys business.
Cisco bought Linksys back in 2003 to get into the consumer networking business and the firm has put out some good products, most notably the WRT54G wireless router that was a favourite with technology savvy punters. Now Cisco is looking to offload Linksys as it continues to pull back from the consumer networking market.
Cisco has been cutting jobs and products such as the Flip video camera, as it wants to get back to the high margin enterprise networking business. Back in 2003, Cisco paid $500m for Linksys and got access to an established business that focused on producing consumer network equipment.
A decade later, it is being reported that Cisco will be lucky to get its $500m back. Cisco has been pulling out of its failed attempt to get into the consumer market and is now focusing on flogging both network infrastructure hardware and servers, though it is widely expected to be hit hard as software defined networks become more popular.
Unlike Cisco’s core enterprise business, Linksys products typically have low margins, and with its parent firm’s slowing sales growth, it is not surprising Cisco wants to offload it. Bloomberg’s sources said Cisco might find interest in buying Linksys from television makers, though they wouldn’t provide any more details.
Huawei has replied to US rival Cisco after the networking firm made allegations about the Chinese company relating to a lawsuit between the two firms.
The case dates back to 2003 and relates to the alleged theft of source code by Huawei from Cisco for use in its networking products. The case was settled confidentially out of court.
Cisco complained about what it saw as a willful distortion of the facts of the case after Huawei’s chief representative in the US, Charles Ding, claimed the outcome was that Cisco stood down over its allegations.
In response, Cisco released excerpts from a report by an independent analyst that was used to form the basis of a settlement, which Cisco said proved Huawei had used its source code in its products.
However, in a statement sent to The INQUIRER, Huawei said it was “disappointed with the continued rhetoric from Cisco” and claimed there was no basis to its argument.
“With respect to the lawsuit which took place about 10 years ago, the fact is the court dismissed the case, upon a joint stipulation of the parties, after the neutral expert’s review. This shows Cisco’s present allegations have no merit,” it said.
Furthermore, the firm also said it didn’t believe Cisco had the right to report elements of the review.
“We don’t think Ding violated the agreement between Cisco and Huawei, which had a negotiated confidentiality provision in it,” it said. “Cisco’s general counsel’s selective and misleading cropping of a confidential report from the Neutral Expert may have violated that provision.”
Huawei added that it would consider releasing more information on the case, though, in an effort to paint a more complete picture of the case.
“However, since Cisco has put selected snippets into the public domain, the truth may require that more than carefully selected quotes be put in the public record. Huawei is exploring the best way to accomplish that goal,” it said.
The enthusiastic backer of Enron and serial over charger of mortgage payers, JPMorgan Chase has just splashed out on a new $500 million data center.
CEO Jamie Dimon announced the move which practically everyone in the IT industry finds a bit strange. While Chase is the US’s largest bank, the new facilities are a little big by anyone’s standard. It is about the same about of money that Google and Microsoft in their largest data centres for their cloud networks.
Dimon cited the figure as one of the advantages of being a big size. It can afford to invest cash in this way. Size lets Chase build a $500 million data centre that speeds up transactions and invest billions of dollars in products like ATMs and apps that allow your iPhone to deposit cheques, he enthused.
JPMorgan Chase operates two large data centres in Delaware and a 400,000 square foot facility. It also acquired data centres in its deals for distressed rivals Bear Stearns and Washington Mutual in the early days of the 2008 financial crisis. So why it needs a huge new one is anyone’s guess.
Network equipment maker Cisco Systems said on Monday that it plans to eliminate about 1,300 jobs as part of ongoing efforts to restructure the company.
“We are performing a focused set of limited restructurings that will collectively impact approximately 2 percent of our global employee population,” the company said in an emailed statement.
These actions are part of a continuous process to simplify the company and assess the economic environment in certain parts of the world, it said.
Cisco had 65,223 employees at the end of its fiscal third quarter, according to its website.
Cisco last year started a plan to cut expenses by $1 billion in an effort to make the company leaner and more efficient.
Marvell has shed some light on its new Avastar 88W8897 802.11ac low power WiFi chip. In addition to up to 867Mbps of WiFi transfer throughput, the new chip also integrates Bluetooth 4.0, near field communications (NFC) as well as Wi-Fi certified Miracast and integrated location engine. Aimed at notebooks, ultrabooks, tablets, gaming consoles and smart TVs, the new Avastar 88W8897 is expected to show up in various devices around this time next year.
The implementation of 802.11ac standard and Bluetooth 4.0 in the same chip is not something that we have not seen so far, but with NFC, it is certainly becomes a quite interesting chip. As noted, the new Avastar 88W8897 will feature 867Mbps of transfer throughput which is not as fast as we are other chip manufacturers but still faster than 802.11n. Marvell reckons that 802.11ac is still young but should become a big thing as of next year.
Marvell also claims that the Avastar 88W8897 SoC offers the highest level of integration available enabling a rest of bill of materials footprint reduction of 40 to 50 percent and cost reduction of 75 percent when combined to previous wireless solutions. The Wi-Fi certified Miracast, expected to be certified later this year, 802.11ac transfer speeds and Marvell’s dynamic rapid channel switching (DRCS) technology will allow users to stream video from a smaller device like tablet to a larger display while simultaneously surfing the net without losing the connection in 2.4GHz. The last, but not least, is the integrated location engine that enables accurate indoor positioning by implementing 802.11v time of flight protocol inside the hardware.
Cisco released an API at the Interop 2012 Conference this week for its branch routers designed to enable third-party developers to write applications to beef up the security of phone calls over the router network.
The Cisco UC Gateway Services API is a Web-based programming interface that allows customers and developers access to call information over a Cisco ISR G2 router at the edge of a voice network, such as signaling and media. This information can be used to detect and help prevent malicious activity such as social engineering and identity theft scams, contact center account takeover fraud, unauthorized network and service use, and denial-of-service attacks.
Applications written to the API can then apply appropriate action to terminate, redirect or record the call.
Cisco, citing data from the Communications Fraud Control Association, says global telecom fraud losses are estimated to be $40 billion annually.
Comcast has begun the production rollout of its new IPv6 service, with 100 customers upgraded in San Francisco’s East Bay in one week.
IPv6 is an upgrade to the Internet’s main communications protocol, which is called IPv4. IPv6 features an expanded addressing scheme that can support billions of devices connected directly to the Internet at faster speeds and lower cost than IPv4, which is running out of addresses.
Comcast began an IPv6 trial 18 months ago and is a leader in the deployment of IPv6-based services among U.S. ISPs.
The production rollout began on Oct. 31. It offers customers “native dual-stack service,” which means Comcast is supporting both IPv6 and IPv4 services.
The initial subscribers of Comcast’s production-quality IPv6 service have stand-alone computers running Microsoft Windows 7, Windows Vista or Apple Mac OS X that are connected directly to a Comcast cable modem. Comcast plans to support IPv6 for customers with home routers at a later date.
Cisco announced improvements to its video product line Thursday to make it easier for businesses to create and share video, including a free app coming soon for iPhone and iPad devices.
The free app will make Cisco’s existing Show and Share software available for iPad and iPhone in late October through the Apple App Store, Cisco officials stated via a Webcast earlier this week.
Show and Share is Cisco’s video-sharing software, which allows users to search and watch videos as well as record and upload their own videos. That software has been available on other hardware, but until now not for the iPhone and iPad.
Also, Cisco said it is integrating its existing Show and Share with its Media Experience Engines 3500 and itsTelePresence Content Server, although it didn’t yet name the products that will provide the integration. Also, a new software release of the 3500 allows it to support Flash, H.264 and Windows Media formats.
An existing software tool called Pulse Video Analytics will soon allow searches of video content by keyword or speaker in the Cisco Show and Share product.
Cisco has slashed its forecast revenue increase by more than half, while rumours circulate about the possible departure of its long-serving CEO.
Cisco previously expected to increase revenues by 12 to 17 per cent over the next three years, but it has revised this figure downwards to a much smaller five to seven per cent, according to the BBC. It expects profits, however, to be seven to nine per cent for this three year period, which is a healthy profit forecast for a company that has been struggling in the recent economic climate.
Cisco’s original optimistic outlook appears to have been founded on an overall view that the global economy would recover quickly, a view that is swiftly changing as many fear another dip into recession, particularly with the debt crisis in Europe. This negative outlook has likely had a strong impact on Cisco’s forecast, resulting in its far more modest growth expectations.
Cisco has also had some problems of its own to work out over recent months. In July it announed that it would axe as many as 15 per cent of its workforce, or 11,500 people, in addition to selling a Mexican set-top box factory to Foxconn. It also abandoned its Flip video camera business, with the loss of 550 jobs.
In April the company’s CEO, John Chambers publicly acknowledged that Cisco had lost its way, with fiscal third quarter profit down a massive 18 per cent. He called for a refocusing on areas in which the company is highly successful, such as networking, servers and cloud provisioning.
Broadband speeds on average are within 80 percent of what major Internet service providers advertise, an appreciable increase from two years ago, according to a government study.
The Federal Communications Commission studied cable, DSL and fiber-to-the-home services at 13 top U.S. broadband providers.
The FCC found Verizon Communications Inc’s fiber network was best at meeting or exceeding advertised maximum download speeds, while Cablevision Systems Corp came in last place.
Overall, the numbers were a big boost from 2009, when data indicated download speeds were often about half of Internet service providers’ (ISP) maximum advertised speeds.
“Most major ISPs are providing service close to what they’re advertising. This represents a significant improvement over the findings from two years ago when we first shined a light on this issue,” FCC Chairman Julius Genachowski said, unveiling the study’s findings at a Best Buy Co store in the District of Columbia.
During peak consumer usage hours when networks are busiest, actual download speeds varied from 114 percent to 54 percent of advertised speed among the different ISPs, the FCC said.
The complete findings of the report, its raw data and an FCC-prepared guide for consumers will be made available online. The FCC says the data will help consumers decide which Internet speed, service and provider best meet their needs.
“This report pretty well dispels the myth … that there’s a huge gap between advertised and actual speeds, and in fact we do pretty well here in the United States,” said Richard Bennett, a senior fellow at the Information Technology and Innovation Foundation.
Not everyone was impressed with the study’s findings.