To: Jan Crawley who wrote (89924 ) 1/6/2000 12:53:00 AM From: Glenn D. Rudolph Read Replies (1) | Respond to of 164684
PALO ALTO, Calif., Jan. 6 (Reuters) - Cisco Systems Inc. CSCO.O, the world's biggest maker of equipment that helps to power the Internet, on Thursday is expected to announce a new product that will create home networks linking together personal computers, printers, faxes and other devices. The move, along with an agreement to work with Sun Microsystems Inc. SUNW.O -- the developer of the Java programming language -- to set standards for home networking, and an announcement with Whirlpool Corp. WHR.N to develop appliances that link to the Internet, is the latest in Cisco's strategy for entering the consumer market. "This is really a natural extension of our Internet leadership" in big business and large networks, said Kristine Stewart, head of marketing for Cisco's consumer business. Cisco started its consumer business last year with the introduction of cable modems and said it sold more than 250,000 of the devices in 1999. Since then, however, analysts have begun to wonder what its latest moves might be in a market that could grow to $8 billion by 2002, according to market researcher Cahners In-Stat Group. Called the Cisco Internet Home Gateway, San Jose, Calif.-based Cisco will sell the device to service providers such as phone and cable companies, who will then issue them to consumers in much the same way they now do cable set-top boxes. The device routes both phone calls, data and video traffic over standard telephone wiring and jacks in homes. Cisco has been aggressively targeting the so-called service provider space, traditionally dominated by telecommunications equipment makers such as Lucent Technologies Inc. and Nortel Networks of Canada. Now, though, the worlds of high-technology and telephones are colliding as a result of the Internet. The devices will allow for unlimited connections throughout the home, Cisco, said. It will use the Home Phoneline Network Alliance, or HPNA, protocol and will transmit data at up to 10 megabits per second, allowing for viewing video smoothly. While some, such as Intel Corp.'s INTC.O Chairman Andrew Grove, has pooh-poohed the idea of the Internet-enabled refrigerator, Cisco has grand plans for such an item. Whirlpool and Cisco will work together to make a refrigerator that has an integrated bar code scanner, and when a family member runs an empty carton of milk by the scanner, it a replacement will be added to the shopping list. Whirlpool and Cisco also have plans for a stove that has an Internet browser built into it, allowing for recipes to be downloaded and the stove to set itself automatically to the right temperature. Cisco plans to make the announcements at the Consumer Electronics Show in Las Vegas. REUTERS Rtr 00:02 01-06-00