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Linksys Evolves As Part of Cisco
Monday, July 21, 2008 7:55 AM


(Source: Orange County Business Journal)trackingBy Tolkoff, Sarah

TECHNOLOGY: Top exec thinks globally, still wants autonomy from parent Michael Pocock is engaged in a balancing act as the top guy at Irvine's Cisco-Linksys LLC, the consumer business of networking kingpin Cisco Systems Inc.

Pocock took the reins two years ago from Linksys founders Victor and Janie Tsao, who had grown their business selling routers, adapters, switches and other home networking devices from their garage in Irvine.

As senior vice president and general manager, Pocock is charged with keeping that homegrown feel and simultaneously fitting into the big, global company culture of Cisco.

So far it's working, as Linksys has grown closer to Cisco since its $500 million acquisition five years ago but has kept some independence.

"Cisco has acquired over 100 companies and most of them have been integrated into various groups within six to 12 months," Pocock said. "But there was a conscious decision made by Cisco's board to keep Linksys separate. It's part of our DNA."

After the sale, the Tsaos stayed on for three years to oversee the transition.

Pocock was handpicked by Cisco from his post as chief executive of Polaroid Corp., part of Minnetonka, Minn.-based Fetters Group Worldwide LLC, to run the company from its University Research Park headquarters near the University of California, Irvine.

He walks a fine line of encouraging the company to cozy up to parent Cisco while still holding tight to its Linksys identity.

"We work a lot closer with Cisco than we ever have before," Pocock said. "In the past the need to collaborate and leverage the assets of the corporation were minimized. Linksys in a lot of ways was an island."

The company is set to include Cisco's name more prominently on its products sold in stores and distributed to small and midsize businesses through resellers.

As it stands, Linksys is identified as "a division of Cisco" on boxes.

It's set to be labeled "Linksys by Cisco"with Cisco getting the same size letteringin coming years.

Still, Cisco and Linksys will maintain "an arms-length relationship," Pocock said.

"Inside the U.S., Linksys has a very strong brand, so we are not going to do anything crazy there," he said.

Pocock has an overarching task: to turn Linksys into a global company.

At the time the Tsaos sold the company, it saw about 95% of sales from the U.S.

Global Sales

Cisco's goal for Linksys is to have half of its sales come from abroad by 2010.

It's on its way-Linksys now has roughly 35% of its sales from outside the U.S.

Cisco doesn't break out sales for Linksys.

The Business Journal estimates that it saw about $1 billion in revenue last year.




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