Cisco Systems is buying Moto Development Group, a small company that helps vendors design consumer-based electronic devices, such as Cisco's Flip video camera. Cisco is looking to Moto to boost its product road map for the consumer space, one of 30 markets that Cisco is targeting.
Cisco Systems is continuing its push into the consumer space with the
acquisition of Moto Development Group, a privately held company with a history
of helping create consumer devices, including Cisco's Flip video camera.
Cisco officials said Moto's 35-member team will complement
Cisco's own consumer business and enhance its product road map. The consumer
space is one of 30 markets that Cisco has targeted for expansion.
Financial terms of the deal, which was announced May 18, were
Cisco already makes a host of consumer products, from the Flip
to the Valet home wireless hot spot and Linksys router.
"Moto's design and engineering teams have deep consumer
expertise that will accelerate our ability to continue to deliver great
products and expand Cisco's consumer business," Jonathan Kaplan, senior
vice president and general manager of Cisco's Consumer Products group, said in
Moto's customers run the gamut, from Microsoft and Pure Digital
(the Flip creator that Cisco bought in 2009
) to Sirrus, Twenty20 and Virgin Pulse.
Brian White, an analyst for Ticonderoga Securities, said the
acquisition is a smart one for Cisco, which wants to become a larger player in
the consumer electronics space.
"Cisco is provided with more innovative tools to pursue
the consumer market, which is one of the company's longer-term growth
drivers," White said in a report May 18.
Ticonderoga, quoting figures from the
Consumer Electronics Association, said the consumer electronics space is about
a $681 billion market in 2010, though Cisco in 2009 said its addressable market
was $4.9 billion.
Like counterparts at other tech vendors, Cisco officials view
the consumer space as one where users' lifestyles will continue to revolve
around their electronic devices, and where users will demand greater connectivity
from any device in any location.