25 Comments

Summary:

Cisco, in its effort to become a player in the consumer electronics business, continues its torrid acquisition spree by agreeing to buy marquee design house Moto for an undisclosed amount. The new group will help Cisco Consumer Products Chief Jonathan Kaplan cook up new products.

No, no…Cisco isn’t buying Motorola. Rather it’s agreed to buy Moto Development Group, a design consultancy based in San Francisco. It’s Cisco’s attempt to give its consumer products division a boost. Moto has developed products for Sirius, Intel, Logitech, LiveScribe and other startups. As a group, Moto has been pushing the envelope on some of the new technologies such as running Android on e-Readers and DIY home energy monitors.

Financial terms of the deal were not disclosed. Cisco says that the new design team will report to Cisco Consumer Products Chief Jonathan Kaplan. CCP is responsible for Linksys, Valet and Flip Video product lines.

My take on this deal: It’s a small price and one worth paying if Cisco is really serious about consumer products. At least the San Jose, Calif.-based router maker knows that it’s a bit out of its depth in the consumer market and isn’t shy about looking help elsewhere. However, over the long term I have my doubts that Cisco will be a huge player in the consumer markets. But the company gets an “A” for effort from me.

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  1. Great pickup by Cisco! If I’m not wrong they were also the designers of the flip camera. As we all know, a tremendous consumer success that change the way the video camera market sold and design products. Obviously, Cisco took notice of this when they bought flip last year.

    The Moto guys will certainly help Cisco move into the consumer market much faster and with better design products. However, I do agree with you that Cisco itself and the type of products they produce will not have a major impact in consumer retail.

    But definitely an A+ to Cisco for giving it the old college try.

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