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The Almighty Buck Wireless Networking Hardware

Cisco to Acquire Linksys 256

forged writes "The Boston Globe is reporting that networking giant Cisco Systems plans to acquire Linksys later this year for $500M, thus entering the consumer market. Linksys also has a press release. The good news is that those who bought a Linksys access point now have a Cisco access point for 1/2 of the price ;)"
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Cisco to Acquire Linksys

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  • by Anonymous Coward on Thursday March 20, 2003 @11:48AM (#5555783)
    I mean, they (seem to me to) have a virtual monopoly on the business router market, and are now seem to be trying to extend it to the consumer market.

    What do you guys think of Cisco, as a corporation? I remember seeing an article on Wired years ago about how happy the employees were about working there.

    Things may have changed now, though.

    tmegapscm
  • by yerricde ( 125198 ) on Thursday March 20, 2003 @11:48AM (#5555791) Homepage Journal

    The good news is that those who bought a Linksys access point now have a Cisco access point for 1/2 of the price

    That is, until Cisco raises the price on all the devices sold under its Linksys brand by oh, about 50 percent so that it doesn't compete with Cisco brand devices.

  • I've never been much of a network expert, but doesn't this just add to the Cisco certification headache? Are they going to discontinue the other products? interesting stuff!
  • Great... (Score:2, Interesting)

    by bob670 ( 645306 ) on Thursday March 20, 2003 @11:52AM (#5555838)
    we all know how consolidation benefits the consumer? Can Cisco succeed in making home broadband routers as painful to set up as their enterprise offerings?
  • Sure the Lynksys router I have works with my Mac/Unix/Windows network, but you'd think by their website you have herpes if you run anything other than Windows.

    Hey, why'd you all get quiet all of a sudden?

    Uh, I have to go...

  • by Anonymous Coward on Thursday March 20, 2003 @11:54AM (#5555871)
    Things may have changed now, though.

    Not likely. Despite the complete and utter wreckage that the telecom sector has become, Cisco is still handing out bonuses to its employees. Basically, its in their employment contracts that if Cisco meets their quarter, employees get bonuses. Compare that to their colleagues at other companies...those few that are still employed have gone through wage freezes, salary cuts, etc.
  • by hrieke ( 126185 ) on Thursday March 20, 2003 @11:59AM (#5555914) Homepage
    Linksys has some odd stuff that I really don't see CISCO holding on to- NAS, battery backup, KVM, etc.

    Guess it will come down to if CISCO can leave Linksys alone or not.
  • Re:This Sucks!!! (Score:5, Interesting)

    by binaryDigit ( 557647 ) on Thursday March 20, 2003 @12:02PM (#5555947)
    I guess Cisco is getting scared of the competition, and decided to crush them...

    Huh? How is Linksys competition to Cisco. Linksys stuff is primarily aimed at the home/small office. Cisco stuff is targeted towards corps/isps/large installs. I've never heard an IT guy for a large install saying "Gee should I go with Aironet or the WAP11" or Joe Bob saying, "I wonder if it's worth it to pay 10x more for an Aironet wap vs the Linksys". Cisco apparently wants into the lowend market. Where you do have a point is to see how long Cisco keeps the Linksys name. Do you lose consumer familiarity with Linksys to push the "prestige" of the Cisco name?
  • IOS (Score:2, Interesting)

    by Saint Mitchell ( 144618 ) on Thursday March 20, 2003 @12:18PM (#5556090)
    Does this mean that they will port IOS to the cheaper Linksys stuff, or are we stuck with QOS or whatever Linksys currently uses. Not that it does a bad job, but i'm used to how IOS functions.
  • by Anonymous Coward on Thursday March 20, 2003 @12:33PM (#5556221)
    If they decide to make an entry into a market, they will attempt their own product line to enter the market. If, within six months, they are not a market leader, they will BUY the market leader.

    look at the aironet products
    look at the vpn 3000 (formerly altiga)
    look at the pixen
    look at the catalyst series (2800 was a grand junction box)
  • by Anonymous Coward on Thursday March 20, 2003 @12:38PM (#5556262)
    Many of my SOHO customers have gotten great value from the linksys router products. I use them myself. Sure they are simple, but most people just need simple.

    The single area where the linky fell apart was in supporting multiple simultaneous VPN tunnels. They have promised some new models to rectify this shortcoming. I suspect this is the stuff Cisco will kill.

    The linksys stuff seemed to be on a growth pattern that indicated this cheap consumer shit was going to gain more and more functionality. Cisco stepped in to put the breaks on this trend. If they don't kill linksys entirely, they will limit its functionality to create a clear demarcation between high and low end. Linksys as an indie would continue to blur the line. Cisco will make the line crystal clear.
  • by Anonymous Coward on Thursday March 20, 2003 @12:40PM (#5556282)
    Here's a tip: if you ever need a firmware upgrade on your Linksys product and don't have a Windows box, just go to the web site and do an RMA cross-ship. They'll send you a new (well, refurbished) unit, no questions asked, then you send back the old one.

    That's how I upgraded my WET11 to fix a security bug!
  • Good. (Score:3, Interesting)

    by NetJunkie ( 56134 ) <jason.nash@CHICAGOgmail.com minus city> on Thursday March 20, 2003 @12:54PM (#5556401)
    I think it'll help Cisco to open up the bottom end of the market. The two companies are in no way competing. I just deployed some Cisco 1100APs at work. We compared them to the MS wireless router and Linksys WAP11. The Cisco easily got twice the range in an office environment than the other two. So yeah, they might cost more but you definately get more. Plus we get the advantage of using LEAP.
  • by kawika ( 87069 ) on Thursday March 20, 2003 @01:19PM (#5556606)
    Amen, brother. I just spent two hours on the phone with a friend who was trying to find the working Windows XP driver for a Linksys 802.11 card. The card was poorly labeled and their list at http://www.linksys.com/download/ is only easy to search if you do a view/source on the HTML.

    Finally, I gave up and told him to email tech support. Turns out that particular card shares a plug and play ID with a card that takes totally different drivers. You have to determine the driver you need by looking at markings on the card! For those of you who have dealt with PnP you know this is a horrible sin. The whole idea of PnP was to let the computer figure this stuff out.
  • VoIP (Score:4, Interesting)

    by m0i ( 192134 ) on Thursday March 20, 2003 @01:28PM (#5556679) Homepage
    Maybe Cisco will push IP phones to consumers thru Linksys, at an affordable price.. Big market there!
  • by netdistortion ( 658957 ) on Thursday March 20, 2003 @02:10PM (#5557165)
    Cisco was a GREAT place to work at. I enjoyed working there for about 2 months (contract job). They give their employees IBM thinkpads for work. Great cafeterias, gyms, and discounts on cisco products. There's other benefits, but as a contract employee of theirs I didn't get all of them. http://www.netdistortion.com
  • by jdehnert ( 84375 ) <jdehnert@@@dehnert...com> on Thursday March 20, 2003 @02:34PM (#5557548) Homepage
    Having worked for Cisco and participated in my share of acquisitions, I have faith that Ciso will have no problem integrating Linksys into the Cisco way of things. The most interesting item in the press release, IHMO is...

    Upon closing of the acquisition, Linksys' business will be operated as a division of Cisco, and its products will continue to be sold under the Linksys brand through its existing retail, distributor and e-commerce channels. In addition, Linksys will have access to Cisco's sales infrastructure to address international markets and the service provider channel.

    so it seems to me that Cisco wants to leverage Cisco's MASSIVE infrastructure and buying power to increase the margins, while continuing the Linksys name to disassociate them from Cisco at the consumer level.

    What worries me is that in my time at Cisco, they never seemed to 'get' the SOHO market. As I recall, Cisco has been in the SOHO area before. I'm not sure what happened, but I suspect the Cisco business model didn't play well and they backed out when it was clear they weren't going to make the margins they do on the bread and butter items.

    Cisco has learned from the burst of the bubble. While the end result has cost some people thier jobs as they cut or trimmed product lines, it has also make Cisco much more aware of how and where it makes money. Add that in with the big slowdown in acquisitions and I would speculate that Cisco has done it's homework on this acquisition, and that they have a good game plan on how to proceed.

    Based on my experience with Cisco and evidenced by a number of product line closures, I can say that Cisco may not have always put in this much though into an acquisition.

    My guess is that this will be a good thing for Cisco and Linksys, and hopefully for the consumers as well.
  • by Anonymous Coward on Thursday March 20, 2003 @02:48PM (#5557723)
    I have to agree that while it lasted, I enjoyed being a Cisco employee.

    But, they sure are quick to drop the hammer if your business unit doesn't produce enough revenue. And R&D is pretty much through purchasing startups (after which sometimes all the original startup employees are no longer needed.)

    They are also big into sending work to India.
    Their stuff is priced pretty high for what you seem to get. And IOS is right up there with vxWorks (inside joke.)
  • On the AP side (Score:3, Interesting)

    by afidel ( 530433 ) on Thursday March 20, 2003 @03:48PM (#5558403)
    No you do not have a Cisco AP for 1/2 the price. Cisco/Aironet AP's have a PPC processor and the best wireless cards in the industry. The origional software is by far the most advanced and has the largest feature set including the only default encryption policy I would trust on a network I admin (LEAP has never been cracked unlike straight WEP). In addition they are porting IOS to the AP's so you will soon be able to do all the IOS stuff on your 350 or 1200 series AP. Compare this to a Linksys box which has a very anemic processor, fairly crude software, a weak wireless card, etc and which does not have the horsepower to run IOS. This is Cisco trying to cover the entire product spectrum from 4 port unmanaged hubs to the big routers. The only potential problem I see with this is the same one Cisco has run into when they try to make their own cheap gear, people see the Cisco name and expect the Cisco feature set, so what starts out as a cheap simple product ends up like their home router series, a shrunk version of their big equipment with a pricetag to match.
  • by TaliesinWI ( 454205 ) on Thursday March 20, 2003 @05:26PM (#5559695) Journal
    On the low end, I completely agree. But is anything with a Cisco badge truly priced such that it can be considered "low-end"?

    On the high end, I emphatically disagree. Talk to someone who's administering more than one of the platforms you mentioned (3COM, Nortel, Lucent, and Cisco). Ask them which hardware is the most reliable, flexible, configurable (no Windows-only Java programs needed), has the best web site support, and in general, has rarely if ever let them down in a pinch? Their answer will most likely be Cisco.

    And also, all you have to do to get routine software upgrades for Cisco products is register for their site, for FREE, whereas 3COM/Lucent/Nortel want you to annually pay for maintenance contracts, and if the problem/bug you're experiencing isn't fixed within that year, well, then, please buy another yearly contract, repeat ad infinitum. 3COM in particular has a history of deliberately screwing customers that had been with them since the beginning, such as promising an eventual fix for a UDP latency bug (a big deal among ISPs at the time because it affected Quake players, for example), but only for "current contract customers" and then about 18 months later, dropping that product (the NetServer) and replacing it with a newer one (the HiPER ARC) that wasn't backwards compatible, rendering all the users that were waiting for the promised fix out in the cold, and thousands of dollars poorer. Many of the people burned by this little stunt switched away from 3COM after this, but others stayed and now couldn't PAY people to take the old NetServer stuff off of their hands - it is utterly useless.
    Lucent is better at least, because you can still get old Livingston and Ascend firmware updates for free, you just need to pay if you want software for anything more modern. And even though some of their products have been dead for some time (long live the Livingston Portmaster!) at least the legacy stuff is useful in limited capacity. A PM3
    is still a great choice if you want to get a little POP going in an area where v.92 isn't much of an issue due to phone line quality anyway.
  • Re:Sweet! (Score:2, Interesting)

    by k_stamour ( 544142 ) on Thursday March 20, 2003 @06:47PM (#5560520) Homepage
    Your "pentiums out of dumpsters" have a 1.3 gig backplane? When your hit by a bus, doesn't the new guy know what you rolled? Does your "Pentiums out of dumpsters" provide mission (revenue) critical services for your boss? Is your "Pentiums out of dumpsters" modular? Can you get support from "Bobs rubbish removal" when your boss ask you for Ether Channel support out of your "Pentiums out of dumpsters". Don't get me wrong. All Linux base here unless that Pentium is the road block. If your in love with unix based routers, Check out Juniper [juniper.net]
  • Re:Sweet! (Score:3, Interesting)

    by j-pimp ( 177072 ) <zippy1981 AT gmail DOT com> on Friday March 21, 2003 @12:35AM (#5562779) Homepage Journal
    You need to take my comment as it was meant to be taken. Linksys nat boxes have there place> Cisco routers have there place. However, you can do alot with a "pentiums out of dumpsters." There are some issues.
    First of all initial setup will be hard, especially if your rolling you own and not using a floppy router distro.
    Secondly, it can be hard to avoid the temptation not to strip down the system to bare minimum.
    The best thing to do is have two similar machines running the same OS, one as a router and the other on the inside of your network will development tools. Then you can recompile rpms, or rebuild your source tree if your running OpenBSD, nfs mount the rpms, or /usr/src and /usr/obj if your running openbsd, and update your OS. Then again you should only be updating for a good reason. You can do some port fowarding magic so that you can ssh into the box inside the network from the outside world and that can serve as your shell account you use for quick nmaps and the like.

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