CES 2009

Cisco CEO John Chambers during his keynote speech at CES 2009.

(Credit: Sarah Tew/CNET Networks)

LAS VEGAS--Two of the tech industries biggest champions for using technology to eliminate poverty in the developing world took the stage at the Consumer Electronics Show here on Friday for the final keynotes of the conference.

The message that the executives brought to the crowd at CES was simple: Technology is key to improving the lives of billions of poor people throughout the world. Intel Chairman Craig Barrett and Cisco Systems CEO John Chambers have each received awards and have been lauded for their work in helping fight poverty throughout the world.

Barrett took the stage first, where he promoted Intel's newly formed program called Small Things Challenge, a partnership the company announced this week with microfinancing firmKiva.org and Save the Children.

As part of this campaign, which is raising funds for Kiva and Save the Children, Intel has promised to donate 5 cents for every person who visits the Smallthingschallenge.com Web site, to push for development and education in emerging countries. And Intel plans to provide up to $300,000 a year for the project.

During the keynote, Barrett provided several examples of how technology, including the new third generation Classmate PC Netbook, which uses Intel's low-power Atom chip, can help improve the lives of people living in poor countries. And he urged everyone in the audience to contribute to Kiva and Save the Children.

"You travel and see the impact that technology and your donations can have on children's lives," he said. "Whether it's Kiva or Save the Children, it's a small step toward making the world a better place. But each and every one of us can play a role."

Adam Duritz of Counting Crows joins Intel Chairman Craig Barrett on stage at CES 2009.

(Credit: Marguerite Reardon CNET News/CBS Interactive)

Intel has enlisted the help of several celebrities to get the word out about the Small Things Challenge. And two of the celebrities supporting the effort, joined Barrett on stage, Adam Levine of Maroon 5 and Adam Duritz of Counting Crows.

Chambers didn't need star power when he took the stage later in the afternoon. The charismatic executive walked among the crowd like a Southern preacher at a church revival. But his message was less about philanthropy and giving back as an individual, and more about how developing countries can implement technology to pull themselves out of poverty.

He started off describing what he considers the "pillars of national competitiveness" that will make developing nations more prosperous. The pillars are education, infrastructure, innovation, the ability to identify market transitions, a supportive government, and collaboration.

He said technology is important to developing nations because it helps drive economic growth, create jobs and improve productivity. And he said it could help improve the quality of life of people, especially when it comes to health care.

Chambers likened developing countries to businesses, and he compared his own company's successes in growing its business over the years to what countries must do to improve the lives of their citizens. He said that countries, like companies, need to look out for market transitions. But he also said that they need to have a clear vision of where they want to go, and they must be able to execute on that vision. What's more, new ideas need to be able to scale as well as be sustainable.

"Emerging countries are like companies," he said. "And they can follow the same path toward success. You must be able to execute. But you can't have speed without vision. And catching market transitions determines whether a company or a country is successful."

Intel Chairman Craig Barrett during his keynote address at CES 2009.

(Credit: Corinne Schulze/CNET Networks)

LAS VEGAS--Cisco Systems plans to focus on the consumer market a lot more in the next three to five years, the company's CEO John Chambers said Wednesday during the company's press conference at the Consumer Electronics Show.

John Chambers, Cisco Systems CEO

(Credit: Cisco Systems)

This increased focus will likely mean a "steady stream of product announcements, partnership announcements and acquisitions" from the company as it grows this market, Chambers said.

Cisco initially got into the home networking business in 2003 with its acquisition of Linksys and it increased its presence a couple of years later with the acquisition of set-top box maker Scientific Atlanta. With these products as the corner stone of its consumer business, Cisco claims it has sold some 160 million home routers and set top boxes.

But Chambers said the company plans to make a much more aggressive push moving forward, especially over the next 12 months.

"We are really committed to this market and we're putting the whole company behind it," he said. "We will be very aggressive."

Chambers said he hopes to grow Cisco's consumer business to between $5 billion and $10 billion over the next few years.

Cisco has been talking about increasing its presence in the home for more than a year. And Wednesday it announced new home networking products and a bold new service designed for big media companies to help bring more rich content to consumers.

The first set of products come from the Cisco's Linksys home-networking business unit. And they're designed to let consumers share music throughout their home. The Wireless Home Audio system sends music over a standard Wi-Fi network to speakers in multiple rooms. The bundle of products, which starts at about $999 for two rooms, even allows music from Apple iPods and iTunes to be accessed through a single controller and played throughout the home.

Cisco also introduced a new Media Hub, a storage device that allows people to access content remotely over the Internet. The product, which comes in different storage capacities up to 500 gigabytes, starts at $299. In addition to providing remote access, the Media Hub provides back-up of digital files, such as photos and music.

And in an effort to help big media and entertainment companies provide richer interactive content to consumers, Cisco announced its new Eos hosted software platform. Cisco will offer the Eos technology as part of a service, which media and entertainment companies will use to create, manage, and grow online communities. The idea is to streamline the process for building new Web sites, while also allowing media companies to add interactivity and social-networking components.

Chambers said that more is to come over the next several months. But he emphasized that Cisco's focus on consumer electronics is not just about individual products, but about building a platform and an architecture that can be sustained in the future.

For all its fervor, Cisco's consumer ambitions may not be so easy to achieve. The consumer electronics market is full of competitors. For example, the home audio system that Cisco announced Wednesday is very similar to what's already offered from Sonos. And there are plenty of companies already offering media hubs. What's more Cisco's pricing is not much different from its competitors.

Additionally, Cisco is still struggling to provide a consistent brand to the market. Today's new products for the home are branded Linksys by Cisco. But the company is in the process of migrating its branding solely toward Cisco.

"Cisco is the main brand," said Ned Hooper, senior vice president of corporate development for Cisco's Consumer Business Group. "But we also have existing brands that have generated significant value. So Linksys will be a family brand."

The new Media Hub NAS servers, MNH400 and NMH300, from Linksys.

(Credit: Linksys)

Network-attached storage servers, in my opinion, have generally not been user-friendly enough. Even the easiest-to-use ones require some getting used to.

This is looking to change with the two new Media Hub series released under the networking giant's marketing brand "Linksys by Cisco" at CES this year, the NMH400 and the NMH300.

The NMH300 series is a budget solution that offers just the core features of the Media Hub, and you need to use a computer to manage the device.

The NMH400 series, on the other hand, features an LCD screen that lets users view a variety of information and perform certain tasks without a PC, such as updating firmware or making instant backups. The NMH400 series also has a 6-in-1 card reader for users to transfer content of flash media onto the Media Hub without the need for a computer.

Much like the HP MediaVault, both Media Hub series feature two hard-drive bays--each can take SATA hard drives of any sizes. One of the bays is occupied with a drive from Linksys. The NMH300 series come with a 500GB hard drive, while the NMH400 series also offer an option of 1TB. The second bay is left empty for users to upgrade.

According to Linksys, the new NAS servers share common Media Hub features, including an easy graphical user interface, simple remote access, and easy-to-operate backup functions. They also boast a friendly design and silent operation that allows them to reside anywhere in the house.

The rest of the core Media Hub feature list includes:

• Two USB ports for external storage and one media reader that supports CF/MD/MS/SD/XD/MMC memory cards
• Gigabit Ethernet connection
• RAID1/JBOD configurations
• Support for SMB/CIF protocol: network users can access the NAS server the same way they access another computer in the network
• PC backup with NTI Shadow software: automatic scheduled backup available
• On-demand backup via GUI or LCD Continuous backup option available
• User-friendly way to import media content with Linksys Media Importer
• DLNA 1.5 certified. Ability to stream content to Xbox 360 or UPnP DMA devices and support iTunes server
• Support for up to three simultaneous HD streams
• Automated "crawl" for UPnP servers to index and aggregate all digital media in the home
• User-friendly, browser-based media browser to view JPEG pictures, play MP3 and WMA music, and manage system configuration
• Media server support for most content formats: Audio: M4A, M4B, MP4, 3GP, WAV, OGG, FLAC, AAC, MP2, AC3, MPA, MP1, AIF, ASF Photo: PNG, TIF, TIFF, BMP, GIF Video: MP1, MPG, SPTS, MP4, AVI, VOB, DivX, 3GP, VDR, MPE, DVR-MS, Xvid, M1V, M4V, MOV, MPV
• Playlists: M3U, M3U8, PLS, WPL
• Remote access using DDNS in combination with Linksys relaying service to cover up to 100 percent of all Internet users

The new Media Hub NAS servers are expected to be available in the first quarter of 2009, and cost $300 (500GB NMH300) and $350 (500GB NMH400). You can also get the 1TB version of the NMH400 series for $430.

(Credit: Cisco)

After hinting at a "digital stereo" product in The New York Times last week, Cisco unveiled the details of its Wireless Home Audio System today, which will be released under the networking giant's "Linksys by Cisco" consumer networking brand. At first glance, the system--which is actually a suite of six products that will be available separately or in a variety of preconfigured bundles--bears a remarkable resemblance to the Sonos Multi-Room Music System. Like the Sonos, the Linksys product has a large-screen remote and offers networked base stations designed to live in several rooms of the house where they can play digital music from networked PCs or online audio sources (Internet radio via RadioTime, Rhapsody subscription service in the U.S., and the AudioLounge premium service in Europe). The Linksys device can also use a "zone" system, so different rooms can access different audio sources, or be linked together for synchronized playback of a single audio stream in multiple rooms simultaneously.

Correction: An earlier version of this story misstated that technology from the Five Across acquisition was the foundation for the new Eos service. It is not.

LAS VEGAS --Two years after it first started courting big media companies, Cisco Systems will finally launch a new product to help these companies harness the power of social networking and connect their brands to fans.

On Wednesday, Cisco will kick off the Consumer Electronics Show here by announcing Eos, a hosted software platform that allows media and entertainment companies to create, manage and grow online communities. Through Eos Cisco has compiled technology tools and slapped on an easy to use interface to make building and customizing Web sites easy. But most importantly, it's bundled into the software, technology that will allow media companies to build interactive Web sites so that fans can connect with musicians, TV shows, movies, or whatever brand a media company wants to promote.

Cisco first began looking for ways to help big media companies late in 2006, when it created the Media Solutions business unit. The idea was to develop and market products to digital media content owners. In February last year, the company bought a startup called Five Across, which developed social networking software.

Dan Scheinman, the Cisco executive behind Eos, believes that the new software platform addresses one of the biggest problems that media companies face today.

"The reality is that media is so disrupted by digital technology," he said. "Fans are looking for ways to connect to their favorite artists or TV shows and they are seeking out communities, but the media companies have been slow to provide this for them. Eos is centered around community and allows fans to participate."

The service provides tools that allow media companies to create blogs, live chats, message boards, rating and ranking systems.

Scheinman believes that social networking is the most important way for marketers and big media companies to reach consumers. Consumers are using sites such as YouTube and Facebook to share media, like videos, music and pictures. He also believes that media companies can combat piracy by offering fans an interactive experience through their own branded Web sites.

"In many ways digital destroys the value proposition for media," Scheinman said. "Other people can rip off the content and monetize it, aggregate it, and take pennies for it."

Cisco Systems, which builds the gear that powers the Internet, is making a big push this year at the Consumer Electronics Show in Las Vegas with new products that will help consumers move digital media around their homes.

Ned Hooper, senior vice president of corporate development for Cisco's Consumer Business Group

(Credit: Cisco Systems)

The company plans to hold a press conference in Las Vegas on Wednesday to reveal the new products and its refined strategy for providing consumers with "communication and entertainment experiences that are more visual, more social and more personal," the company said in a press release.

To get a sneak peek at Cisco's strategy, I talked by phone with Ned Hooper, senior vice president of corporate development for Cisco's Consumer Business Group. While details of the soon-to-be-announced products are still under wraps, Hooper shed some light on why Cisco thinks there is a big opportunity in helping consumers get their homes connected and where the company plans to go with its strategy from next.

Q: Cisco isn't the first company to build products for the digital home. Dell, Gateway, and Hewlett-Packard have all tried to develop products to help consumers play their music and video throughout the home. So far, none of these companies have been very successful. Even Apple's Apple TV is a considered a niche product. Why do you think Cisco will have more success?
Hooper: I think it's important to look at how media and entertainment is being delivered to the home. The presence of the Internet and digital media is transforming all these industries and how people access entertainment and how they communicate with each other.

Over 100 million households have set top boxes with their cable or digital satellite service. So the digital set top box market is doing well. Services such as video on demand and DVRs are in high demand. But building expensive devices for a single function hasn't proven to be a viable market.

Cisco has been positioned very well in terms of being able to offer infrastructure for these network services. And we're already in the consumer electronics business with Linksys and Scientific Atlanta. It might surprise you to know that Cisco has shipped over 160 million consumer devices. This includes set-top boxes and home routers.