Cisco Video Thrust Telegraphs Bandwidth-Bandit Strategy

Thursday Jan 7th 2010 by Staff

Cisco's plan to sell videoconferencing equipment to consumers will also drive up bandwidth demand, and that will increase demand for Cisco's networking products.

InformationWeek: Cisco CEO John Chambers truly has treated the recession as an opportunity, expanding the company's business beyond networking into the server market. Now the company has unveiled plans to expand into the consumer video-conferencing market. This move means the company will not only sell video equipment, it will also drive up demand for increased bandwidth, which in turn will drive up demand for Cisco's networking products. According to a company press release:

"At CES, Cisco will also share its vision and progress toward developing an entirely new category of video communication, called home telepresence, which uses a consumer's existing HDTV and broadband connection to deliver a unique natural video communication experience from the comfort of a living room. Cisco will enter U.S. home telepresence field trials this spring, with Verizon as an early partner. Home telepresence field trials in France will start later in 2010, with France Telecom as Cisco's early partner."

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