Cisco buying Flip video maker Pure Digital? I can't go for that (no can do)

When yours truly heard the speculation that Cisco might buy Flip Video maker Pure Digital, I began humming to myself that provocative tune by John Oates and Daryl Hall, "I Can't Go For That (No Can Do)." Why? Although a Cisco purchase would be a spectacularly successful cash out for Pure Digital's venture capital investor - Michael Moritz of Sequoia Capital (keep in mind that Moritz and Sequoia were also the original venture capital backers of Cisco), it would not be a wise acquisition for Cisco in my opinion. First, how do Cisco's valuable channel partners benefit with Cisco capital and management attention focused on products sold in mass retail outlets for between $130 and $230 and whose success has spawned a large group of copycat competitors? Second, Cisco's expertise is in developing and supporting complex technology. I fear Cisco risks being "dumbed down" and losing its edge in selling and supporting complex technology, for example, a recent Infonetics enterprise router report shows Cisco gaining market share in SMB routers but losing ground in the high-end router segment to Juniper Networks. Cisco channel partners have made Cisco the most profitable and successful networking vendor on earth. It's my opinion Cisco capital needs to be singularly invested and Cisco management attention totally focused on improving the success and profitability of Cisco channel partners. Anything less and Cisco risks losing what has made it so successful.

Related story: Is Cisco's true cost purchasing Pure Digital $747M?


What's your take, am I totally whacked? BradReese.Com Cisco Refurbished Contact: Brad Reese Twitter: http://twitter.com/BradReese Call Toll Free 866-864-0506 or International 850-364-4115

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