Cisco’s incoming CEO Chuck Robbins may be unrolling more acquisitions than just the TV set-top business, bought for $US6.9 billion in 2005 and sold for $US600 million on Thursday.
There are reports that Cisco is currently making big changes at three more acquired products:
The Register reports that
Cisco has let go of virtually the entire staff of its Invicta unit, makers of its all-flash storage product line. Cisco acquired the unit in 2013 when it bought
Whiptail for $US450 million.
Sources tell the Register (and us) that this was a technology decision. The Invicta product wasn’t keeping up with a very hot and fast-moving flash storage market, the Register reports.
Meanwhile, networking trade publication Light Reading is reporting on rumoured layoffs and possible shuttering of
Ubiquisys, a radio technology Cisco bought for $US310 million in 2013.
And LightReading is also hearing that Intucell could be on the chopping block. Intucell makes software to manage cell networks. Cisco bought it in 2013 for $US475 million.
The theme here seems fairly clear. Robbins is snipping away at products that don’t fit into his grand new strategy for growth, which is focused on cloud computing and the Internet of Things,
Cisco neither confirmed nor denied the reports on the closures. It told us:
In the event of an update to our markets, product portfolio or workforce, we would be committed to communicating with our employees and affected customers first and foremost.
Digital disruption is happening fast, and companies need to change quickly. Cisco is no exception. As we prepare for the future, we are taking a balanced approach — focusing on building our culture and people, while responding to market and business needs in localised areas. This means regular, ongoing adjustments to our strategy in specific parts of the business.