Cisco Flip Shutting Down

You are probably more than aware of Flip cameras. Over the last few years, the company behind the camera became quite popular in the blogosphere due to the cameras they created that could easily connect to a USB port on a computer transfer captured video to YouTube and other video services.

The company originally behind it was Pure Digital Technologies who sold out to Cisco for $590 million. We now hear that Cisco is closing the division down and along with it, 550 employees will also go.

The deal seems to not have worked for Cisco, even though Flip cameras have been quite popular over the past couple of years. Although the company is shutting down Flip, it will continue to support the Flipshare service until that can be merged with other services that Cisco can provide.

The reason why the division is being shut down is believed to be related to the uprise of new smartphones that are also capable of capturing decent video in HD. As smartphones already have the connectivity in to upload captured video online, without the use of a computer, these devices are becoming more common place.

Cisco will now be focusing on what it does best, networking, from what we understand.

MarketWire has the full press release for you to peruse through if needed.

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