Apple, Cisco: Video Showdown Looms?
When it comes to video, even when Cisco Systems Inc. loses the networking giant wins. A case in point: Less than a week after Cisco touted its Flip video camera and essentially bet the company on video, Apple today unveiled the iPhone 3G S — which allows users to shoot and edit videos from their smart phones. But don’t weep for Cisco. Here’s why.
Are Apple and Cisco really heading for a video showdown? Yes and no. Cisco’s Flip video camera will surely compete with Apple’s iPhone 3G S for some consumer dollars. But the Apple and Cisco video strategies are vastly different.
- Apple continues to blend its software and hardware in closed systems. You can bet iPhone movies will be super-easy to edit in Apple’s iMovie software. The iPhone 3G S ships June 19.
- Cisco, in stark contrast, is promoting an any-to-any video strategy — hoping to connect any type of video device to any type of content system. The company spent most of last week evangelizing video during Cisco Partner Summit in Boston.
Cisco CEO John Chambers expects 90 percent of Internet loads to involve video within a year or two. The upshot: Even if Apple iPhone beats Cisco Flip as a mobile video device, the march toward ubiquitous video networks could drive demand for new switches, routers, storage and servers.
Like The VAR Guy said: Even when Cisco loses, it wins.