March 8, 2011

Cisco VideoConferencing Price Drop, Still Too High

Cisco Home Videoconferencing price has dropped but is still too high.

Cisco Umi, Cisco’s Home Videoconferencing price has dropped to $500 and with a usage fee of $100/year. Even with the drop, Cisco Umi price is way too high. Especially when Umi is competing in a market against well-designed, well-marketed, low-priced products such as Apple TV ($99) and Apple FaceTime on iPhone ($0). Cisco is far behind on all aspects.

In addition, Cisco Umi has many faults. As discussed earlier

With the high price, restricted use (in the living room), limited to 1-on-1 calls, requirement for high bandwidth Internet and for both parties to have the same equipment for best experience, the product will find limited use in the consumer market. Someone is watching too many Enterprise movies at Cisco.

And, Cisco seems to have no clue on how to market to consumers or to design consumer products.

Is Cisco Umi for the enterprise?  Well, it is either headed there or will disappear completely. Wait for another price drop in a few months … and then …