At the recent CES Expo in Las Vegas they rolled out new Wireless audio systems, storage devices and new network gear. They have invested millions into consumer electronic start up companies and own the iPhone brand which is currently parked over at Apple.
They also have over $A42 billion cash reserves of which $36 billion is languishing in overseas accounts predominantly in Asia. In fact, Cisco Systems has more cash on hand than any other technology company and that includes both Apple and Microsoft.
At CES I spoke directly with John Chambers, the CEO of Cisco, prior to his big roll out of new consumer electronics products and it is crystal clear that he has a white hot desire to be a major player in the CE marketplace.
In the US and shortly in Australia, if Telstra pick up the Cisco owned Scientific Atlanta Gateway box, Cisco will have a major presence in the set top box and gateway market where, at last count, they owned 61% of the US market.
Also, if Cisco has their way, these boxes along with Cisco powered devices - from video players and new wireless audio devices to new Cisco powered routers - will be streaming content into homes direct from Cisco powered servers and telecommunication providers like Telstra, Optus and Vodafone who use Cisco network gear to manage vast amounts of content and network communication.
On the other hand, Sony is a consumer electronics basket case in urgent need of surgery which Cisco could easily perform.
On May 14th, they are set to report losses in excess of $A4 Billion dollars and in an embarrassing admission recently, their Welsh CEO Sir Howard Stringer admitted that not one single product category in their consumer electronics division was profitable. He also said that brands like Playstation and their Bravia TV's had never made a profit during their entire product life.
So why is Cisco the ideal Company to turn Sony around?
