Entries with tag corporate strategy.

Cisco Launching $1 Billion Cloud Initiative

Cisco Systems says it plans to spend $1 billion in the next two years on cloud computing services, mostly to build datacenters, expected to be on line in North America, Europe, Asia, and Australia this year. The company plans to deliver its Cisco Cloud Services through partnerships with Australian telecommunications provider Telstra, IT distributor Ingram Micro, and Indian IT company Wipro. “Here’s the reality behind the moves: Cisco wants to be an IT partner of choice for the enterprise. The problem for Cisco was that it was selling gear to enable cloud computing but not offering services,” wrote Larry Dignan, editor-in-chief of the business technology news website ZDNet. He said, “The big question is whether Cisco’s cloud efforts ring true to IT buyers or just sound like a case of ‘me, too.’ ” InformationWeek said the service is intended “to serve as a backbone for the Internet of Things.”  (Reuters)(ZD Net)(InformationWeek)

Lenovo Buys Motorola Handset Business from Google

The Lenovo Group of China has reached an agreement with Google to purchase its Motorola handset division for $2.91 billion, reportedly China's largest-ever technology deal. This is the second recent deal the company has made with a US-based firm, having previously agreed to buy IBM’s low-end server business.  Google bought Motorola for $12.5 billion in May 2012. Later that year, it sold Motorola’s set-top box assets to Arris for $2.3 billion. Google has retained most of Motorola’s mobile technology patents. (Bloomberg)(Information Week)(ZD Net)(Reuters) 

Nintendo Plans Move into Healthcare Technologies

With profits continuing to fall at Nintendo, the company has announced its turnaround strategy, saying is not abandoning gaming but will now move into the healthcare arena. Details about the strategy were not disclosed except that the company will not be making a wearable device. Its profits in the first nine months of the current fiscal year, which ends 31 March 2014, dropped 30 percent because of slumping console, device, and software sales. This prompted executives to announce they would take a pay cut for five months starting in February 2014. For example, president Satoru Iwata’s salary will be cut in half. Analysts and market observers contend Nintendo is in trouble because it has neither moved its properties to online gaming nor embraced smartphone gaming. (The Associated Press -- 1)(The Associated Press -- 2)(Reuters) 

Cisco Prepares to Shed Linksys Division

News sources report Cisco is readying to sell Linksys, the technology giant’s consumer networking division. Cisco originally purchased the maker of small office/home office routers and wireless access points in 2003 for US$500 million. Since then, home networking gear has been sold as “Linksys by Cisco” to distinguish those products from Cisco’s enterprise equipment. The divestiture is part of the larger corporate strategy, which moves the company wholly out of consumer products. Bloomberg reports that Barclays PLC has been retained to find a buyer. Analysts say they do not expect Cisco to recoup the original purchase price.
(Ars Technica)(Bloomberg)
News sources report Cisco is readying to sell Linksys, the technology giant’s consumer networking division. Cisco originally purchased the maker of small office/home office routers and wireless access points in 2003 for US$500 million. Since then, home networking gear has been sold as “Linksys by Cisco” to distinguish those products from Cisco’s enterprise equipment. The divestiture is part of the larger corporate strategy, which moves the company wholly out of consumer products. Bloomberg reports that Barclays PLC has been retained to find a buyer. Analysts say they do not expect Cisco to recoup the original purchase price. (Ars Technica)(Bloomberg)

 

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