Cisco to sell Linksys to Belkin.

Yesterday it was announced that Belkin intends to purchase the Linksys division of Cisco’s hands.

I for one, am very happy to see this happen.

I think that for Cisco to be really great, it needs to focus on its core competencies, which does not include home networking equipment.

The downside of this deal, is probably how much, or rather how little, Belkin is willing to pay for the Linksys brand. Cisco will probably end up loosing quite alot of what they paid for it in the first place (which was $500 Million back in 2003).

I believe Mr. Chambers is beginning to reverse on the previous notion that in order for Cisco to evolve it needs to diversify. I seem to recall that previously (when Flip cameras was around) 30 new market adjacencies just that year was the goal.

Working for a VAR, this is also good news, as it was always awkward having people believe that Linksys actually had much to do with “real” Cisco gear.

All in all, positive news as far as im concerned!