CES 2008: Cisco Is Determined to Take Over the Home User Market

Cisco is the world leader in networking and telecommunications devices. The home Internet connection is routed by Cisco's networking gear, just as mobile communications and whatever might connect us with the rest of the planet. However, these things don't keep Cisco busy enough so the giant is determined to take over the home networking as well.

At his year's Consumer Electronics Show, the company is outlining a new plan for conquering the consumer market by entering the worldwide living rooms. The first set of living-room gear includes Cisco-branded set-top boxes, previously manufactured by Scientific-Atlanta, a company that cost Cisco about $6.9 billion back in 2005. The set-top box will include Cisco's networking technology that would allow users to pause a movie in one room and resume its playback in another, or even watch Youtube movies on TV.

The Cisco offensive continues with the computer networking gear it has readied for the markets. The company is promoting the Linksys routers and home media extenders, as these devices are Cisco-branded all over the place. Linksys has become part of Cisco in 2005, when the networking giant achieved it for $500 million, according to Cisco chief John Chambers.

Cisco elegantly dodged the questions regarding its media and content delivery software named the "entertainment operating system" (EOS). The software application will play the role of an all-in-one combo content distributor, social networking platform and content search tool.

One of Cisco's main concerns is the high-definition home media sector. According to Mike Kisch, Cisco's consumer marketing director, the company has gathered all the necessary experience in delivering digital data. At the same time, the purchases Cisco has made has added up a new set of customer relations and expertise.

"We used to see this kind of technology start in the business sector and get pushed into consumer hands," he said. "Now we're seeing the opposite too. Now its a continuous experience where people use devices for work and for play."

Cisco has taken up dancing into a crowded market of social and streaming media in an attempt at seizing the people's living rooms. This action has its risks, just as Dell learned - although it was a great name in digital entertainment. But if Cisco succeeds, it will allow expanding its business way beyond networking and communications.