Cisco Rumored To Be Selling Linksys
New submitter drdread66 writes "Cisco seems to be giving up on another technology acquisition. Hot on the heels of a full writedown for shuttering Flip Video, Cisco is now looking at another potentially huge loss from unloading Linksys."
It was a brand dilution problem and confused SME's into assuming that they had the Cisco Enterprise grade equipment when Linksys are just toys.
The Cicsco purchase of Linksys was closely mirrored by the EMC purchase of Iomega. Will EMC look to unload Iomega now? Anyone wanting to buy one would likely be interested in the other.
I'm glad they're suffering. They deserve to suffer for their decision to force their evil cloud firmware on people.
Linksys produced some decent gear prior to the acquisition. After Cisco bought the company, the default answer for any sort of serious trouble with SOHO gear became "oh, I see you're referring to our Linksys brand; if you're serious about small office or branch office communications, you need to upgrade to our HOLY SHIT THAT'S EXPENSIVE Cisco brand gear instead." This applied nearly universally to cases where a prior generation piece of Linksys gear had performed quite well in the same role. Here's to hoping the brand can get back to its roots instead of serving as a loss leader for more expensive gear.
Write failed: Broken pipe
How's that cloudy, autoupdatey, monitorey thing workin for ya?
We bought Linksys products without question for years, and enjoyed implemented great mini-features like site-to-site vpn or protocol filtering, forwarding, masking etc for all of our clients.
As soon as they became a Cisco product, the quality, engineering and overall security of the products became questionable, and we started moving our soho/consumers to other brands, even though we liked them even less.
I simply could not see any good coming out of selling hardware which would monitor our clients behavior without their explicit consent.
When the foot seeks the place of the head, the line is crossed. Know your place. Keep your place. Be a shoe.
I work for a large enterprise. We "should" be buying more expensive gear. However...
We had a series of small conference rooms that often hosted meetings requiring WIFI access to one of our "play" networks that's isolated from most everything else. We bought a couple of the SMB Linksys/Cisco wireless access points. I believe they were about $500 each. We immediately had problems with them dropping connections, even with small numbers of users. A call to Cisco resulted in "um...you're at megacorp? Buy our enterprise gear. With your discount, surely you can "upgrade" for only a few thousand". And that was that. There was little effort put into solving the problem other than trying to shoo us into buying more expensive equipment. We ultimately punted them all, returned them for a full refund, and are now using access points from Asus that cost us less than 1/2 of the price and work flawlessly.
Lesson learned.
They totally screwed up this acquisition from beginning to end. Back when they bought Linksys, it was a highly competitive brand in its market segmenet. Now it's a joke, with poor quality hardware by the standard of other home networking gear, overpriced, and features total nonsense like cloud-based router configuration that nobody sane asked for. Cisco's answer to all this is "oh, you just need to spend 5x more on Cisco gear instead."
Why would I do that in my house, Cisco? I'll just buy from the competition instead and wind up with a negative view of your entire brand. I don't know if Linksys has any talent left in the company after how badly Cisco has screwed it up, but I hope they can recover once they're put under competent management. I still have fond memories of the old WRT54, which worked so well for so many years.
-- "So they told me that using the download page to download something was not something they anticipated." - Bill Gates
All the people here on /. should know that most recent-ish 'Linksys' gear is supported by aftermarket firmware; DD-WRT and Tomato among others. Granted, a lot of people might not know the difference, but they run much much better than the shit that ships on them.
Hell, I'm still using a WRT54G from forever ago, and it's been online almost constantly (barring my tweaking and futzing up the install occasionally) since mid-2005. No slow-downs, no hiccups (not counting misconfigurations), etc, etc. And this is old old MIPS with 16MB RAM, guys. You know in the newer (WRT120N was mentioned above) hardware should at the very least perform as well as previous products, if not better. But it doesn't. Flash your firmware, and see the difference. Seriously. I'm sure if they cam pre-installed with something like Tomato, out-of-the-box, Linksys wouldn't have this weird brand identity crisis. But of course, Cisco and open-source are at polar opposites of the world, it seems. Also, WTF Slashdot? It's 2012, please get a WYSIWYG editor, instead of arcane HTML formatting and such. Line breaks.
with my reading-fu, but I SWEAR I first parsed that as 'Cisco rumoured to be selling Kidneys'.. I mean, they really stooped low this time..
I used to work for a company that was bought by Cisco: Tandberg.
They cancelled all the high-end Tandberg projects because they were in competition with the products they had developed internally, despite Tandberg's products being vastly superior.
Cisco's products are crap but they want to brand themselves as quality, and they want all their acquisitions to serve the low-end market.
As a result all of the founders and star employees left the company. Several of them used the money they got from the IPO to make new companies in the same sector.
Whoever you were talking to.. you got screwed.. why spend $500 a piece for Linksys branded Cisco equipment, when you could have picked up Cisco Aeronet 2600's (or the equiv back whenever), for around $600, and that is not even the lower end of the Aeronet range...
I came, I conquered, I coredumped
I thought, "Man, they really are in trouble."
Peace is easy to achieve, just surrender. Liberty is much harder get/keep.
From reading people's stories, it sounds like Cisco succeeded in every way. Linksys' made high-end consumer grade networking equipment. Cisco made enterprise grade networking equipment. Linksys posed two risks to Cisco: One is that Linksys could move into Cisco's territory if they started making enterprise grade equipment. The other is that enterprise users might find that Linksys equipment would be good enough in some cases, eating into Cisco's sales.
Rather than risk that, Cisco bought Linksys and ran them into the ground to increase the size of the gap between their enterprise grade equipment and the nearest competitor. If they succeed in selling the company off, they not only succeeded but they recoup a part of their investment. And if Linksys' brand is soiled then even a good buyer with good management will be stuck.
It sounds like it was a good plan.