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Cisco Aims Host Service Platform at Small Businesses

The Linksys division of Cisco, a host service provider, has recently announced a platform aimed at expanding its small-business customer base. New routers, phones and gateways to power broadband access, Internet Protocol, business and security applications, data networking, and a Voice over IP service will be used by the company. It will be hosted by service providers MCI, NeoNova, airBand, and IP Systems. VARs, or a network of value-added resellers, will handle selling, installation and service. Cisco is currently enlisting carriers and VARs for the program.

If purchased through a VAR, the service will cost around $60 to $70 per month, per employee, Cisco said. In addition, there is no capital investment, which should be attractive to small businesses. The first Linksys One equipment will be produced next month. MCI will begin its trials early next year and launch services in mid-2006. `We`re selling into a very big total available market,` Charlie Giancarlo, Cisco`s chief development officer, said during a conference call.

He estimated that the market for small-business-converged services is $10 billion a year, of which Cisco and Linksys own less than a 10 percent share today. Key attributes of the service are affordability and simplicity. A 16-employee system with VoIP can be installed in less than an hour, and costs less than comparable key systems or PBX (define) systems available today, Cisco said.