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Cisco axes Flip camera

Cisco is trimming its consumer business in an effort to refocus itself. The Flip is a casualty of the company's new direction

Cisco axes Flip camera
Though facing tough competition from video-capable smartphones, the Flip has a strong fan base

Networking titan Cisco Systems has killed the ‘Flip' camera two years after it reportedly spent US $590 million on acquiring Pure Digital Technologies, the company behind the Flip.

According to website Businessinsider Cisco sent out a release stating, "Cisco will close down its Flip business and support current FlipShare customers and partners with a transition plan". 

Businessinsider also reported that Cisco CEO John Chambers sent out a memo saying that the company had lost its focus by trying to attack too many different businesses. To slim down the company and refocus itself, Chambers decided to scale down the company's consumer business which included the Flip.

Cisco's release stated the following:

As part of the company's comprehensive plan to align its operations, Cisco today announced that it will exit aspects of its consumer businesses and realign the remaining consumer business to support four of its five key company priorities -- core routing, switching and services; collaboration; architectures; and video. As part of its plan, Cisco will:

1) Close down its Flip business and support current FlipShare customers and partners with a transition plan.

2) Refocus Cisco's Home Networking business for greater profitability and connection to the company's core networking infrastructure as the network expands into a video platform in the home. These industry-leading products will continue to be available through retail channels.

3) Integrate Cisco umi into the company's Business TelePresence product line and operate through an enterprise and service provider go-to-market model, consistent with existing business TelePresence efforts.

4) Assess core video technology integration of Cisco's Eos media solutions business or other market opportunities for this business.

An estimated 550 jobs could potentially be chopped by the fourth quarter of fiscal 2011 due to the changes.

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