Does anyone know if NOVL is working with CSCO (or SUNW) on this new development, or with other companies in this growth area?
TIA, QuadK
Friday January 8 2:05 AM ET
Cisco Unveils Networking Strategy For Consumers
By Duncan Martell
PALO ALTO, Calif. (Reuters) - Cisco Systems Inc. (Nasdaq:CSCO - news), the largest maker of gear
that links computers in networks, Thursday unveiled its plans to tap the nascent market for home
networking equipment, which could link everything from TV sets to furnaces into an integrated household
system.
The networking giant will first work with service providers to establish high-speed Internet connections
into the home. This so-called ''last mile'' has been a stubborn bottleneck precluding the rapid adoption of
movies-on-demand and other services that call for fat data pipes into the home.
The company also announced plans to build a high-speed network with General Instrument Corp.
(NYSE:GIC - news) for AT&T Corp. (NYSE:T - news) and customers of cable television giant
Tele-Communications Inc. (Nasdaq:LBTYA - news), which AT&T plans to acquire. The network will use
existing cable lines.
The system will offer customers the ability to watch television, send and receive faxes, surf the World
Wide Web and talk on the telephone.
Cisco will license its technology to consumer electronics companies such as Japan's Sony Corp.
(NYSE:SNE - news) and Hitachi Ltd (NYSE:HIT - news). to speed the development of gizmos that are
connected to a network. Analysts foresee such developments as networked toys that will ''know'' their
owners. Home owners may soon be able to water their lawns by remote, they say.
''This next wave focuses on consumers and enabling high-speed access to the home,'' said Robba
Benjamin of Cisco, who is heading up its consumer line of business.
Forecasts by market researcher Wedbush-Morgan see the home networking market increasing to $4 billion
by 2002, while market research firm Forrester Research is forecasting the networked toy market will rise
to $2 billion by 2002.
While Cisco is well known among large companies, and 80 percent of Internet traffic is carried using
Cisco gear, the company is not nearly as visible in consumers' minds. But Cisco has already launched an
aggressive advertising campaign and will ''co-brand'' cable modems and other devices similar to Intel
Corp. (Nasdaq:INTC - news)'s ''Intel Inside'' campaign.
''Our awareness with consumers is still fairly low,'' Benjamin said, adding that the pact with AT&T will
offer all-in-one Internet phone and television service over cable lines when complete.
San Jose, Calif.-based Cisco, with $8.46 billion in fiscal 1998 revenue and net income of $1.88 billion, is
the company that surged to a stock market value of $100 billion faster than any other. |
