Cisco has agreed to sell its Linksys router business to competitor Belkin International, a direct competitor in the computer router business. The company will now focus more of its efforts on the growing consumer and enterprise software sectors.
In the meantime Cisco also announced the acquisition of Intucell, an Israel developers of software-defined network (SDN) product. Cisco spent $475 million in cash to acquire the company and an undisclosed sum to retain many of its employees.
Cisco’s shift to the software side of the business has become standard practice for many large scale hardware/software firms who have continued to realize the importance of software based technicians in the growing space of cloud led technologies. It is that shift that has led to many computer technicians working towards programs such as the Cisco 640-802 exam which focused on software protocols include Cisco technology and other industry standards.
In the case of Cisco’s purchase of Intucell it will allow the company to focus on and hire more programmers in the field of mobile phone networking. The Intucell technology allows operators to manage speeds, adjust transmissions and transmit data for 4G LTE networks.
Cisco CEO John T. Chambers recently emphasized his goal of shifting Cisco towards SDN and software more than hardware. During a December 7 briefing with analysts Chambers acknowledged:
“This is a market in transition and the role of the network is going to take a big role.”
Google recently transitioned in a similar way, sell off its Motorola home business wing which creates hardware for cable TV and internet providers.
As Cisco shifts more towards the software side of the business it is likely new competitors will come forward in the hardware space. Traditionally large providers such as IBM and to a smaller degree Nokia, have shifted their energy towards software and enterprise solutions as a means of expanding their reach with lower production costs. Also currently following a similar path is Research In Motion, the Blackberry manufacturer is believed to be eyeing a hardware division ale in order to focus on software in the mobile space.
If you are looking for new opportunities in the technology sector you might want to take a look at new classes in the software space. Whether you focus on Microsoft 640-802 exams or go in an entirely different direction, the more software experience you have, the better off you will be in attracting future jobs as the software space at Cisco and other small, medium and large technology firms.