Another Reminder that Big Companies Flop

Yet another interesting and informative example of a big tech company doing a big belly-flop with a product introduction is Cisco, with its recent decision to pull the plug on its Umi television video-calling system. The Umi device was launched a little over a year ago at a price of $599 plus a $25/month service fee, and allowed users to make video phone calls using their TV as the display screen.

Technically, it worked very well. However, it carried a big anchor in the market. The problem was that anyone to whom you wanted to talk also had to buy the $599 product and pay the $25/mo. service fee.

How many takers would you have among your friends and family?

Recently a new product, TelyHD, was introduced to the market providing the same service but using a Skype account. It costs only $250, with no monthly fee. Although initial reviews say it does not deliver as high-quality video as did the Cisco device, my guess is that it is much more likely to succeed in the market.

Another example of why it is critical to think beyond the technology.