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16th Nov 05

Linksys Launches Linksys One, A Complete Communications Solution for Small Businesses Made Easy and Affordable

Linksys One Hosted Communications Solution Provides a Single Platform for Voice, Data, and Applications While Enabling New Market Opportunities for Value Added Resellers and Service Providers


Linksys One to Become Next Cisco Advanced Technology

Mumbai, November 16, 2005 - Linksys®, a Division of Cisco, the recognized leading provider of voice, wireless and networking hardware for consumer, Small Office/Home Office (SOHO) and small business users, today announced the release of its Linksys One brand of communications solutions for small businesses. This new brand delivers a complete, affordable, easy-to-install Internet Protocol (IP)-based services platform that enables the delivery of a hosted communications solution. The Linksys One Hosted Small Business System (Hosted SBS), the next Cisco Advanced Technology, will provide business-quality voice, video, data networking, business applications, and high-speed Internet access through a single, high-speed connection from a Service Provider.

Linksys One is a solution hosted by Service Providers and sold, installed, and serviced by Value Added Resellers (VARs). This solution includes integrated data and voice products coupled with communication services from a Service Provider including security, monitoring, management and Quality of Service (QoS) for Voice over IP (VoIP). The combination of Linksys One hardware (Services Router, Color IP Phones and Analog Voice Gateway) and Internet services specifically developed for the small business customer makes affordable, easy, converged communications a reality.


AMI Partners, a market research firm, says there are more than 35 million small businesses with less than 100 employees world wide. In 2005, more than $12 billion dollars will be spent on networking and telecom related infrastructure. By 2010 it is expected that nearly $19 billion will be spent on voice and data products for small businesses.


"Small businesses benefit from Linksys One because it's an affordable solution from one source that meets their complete business communication needs - allowing Small Companies to focus on their core business and their bottom line," said Marthin De Beer, vice president and general manager of the Linksys Small Business Systems Business Unit. "Resellers can also benefit from the Linksys One solution which yields them increased profitability through an annuity based revenue stream, and increased sales productivity because Linksys One is designed to be easy to install, maintain and expand. And as the single source for business communications, Services Providers can put affordable service convergence to work for small businesses."

For Small Business Customers:
Instead of paying for and managing separate internet access, phone system, and computer networks, small businesses have one converged services infrastructure with Linksys One for everything: phones, fax, data networking, Internet and business applications. All the small businesses customer has to do is contact a Service Provider or VAR offering Linksys One solutions, select the number of Linksys One devices and services they'll need, and their entire office can be set up in as little as one hour. Linksys One takes the burden of communications technology away, leaving small businesses free to focus on growing their business.Linksys One provides small businesses with the following benefits:

  • One complete, affordable communications solution: Linksys One delivers the communication tools a growing business needs to be successful - low-cost phones, highly secure data networking, high-speed Internet, business applications and more - all on one simple connection.
  • One easy plug n play installation: Linksys One comes pre-packaged and can automatically configure itself to provide businesses with instant communication services. Simply plug in Linksys One phones and the entire business is ready to communicate.
  • One trusted source: Instead of negotiating with different phone, Internet and networking companies, businesses have a single point of contact for everything.
  • One network to count on: Linksys One builds powerful security, quality of service and reliability right into the network so that you can focus on your business.
  • One solution that grows with a small business: As the business grows, the Linksys One solution grows. The network updates itself and can easily and affordably incorporate new applications like wireless phones or Video Surveillance.

Value-Added Resellers (VARs):
There is an increasing demand for hosted services within the small business market and with the Linksys One solution, VARs now have a unique opportunity to provide their customers with one complete hosted communication solution and localized customer support. By partnering with a Hosted Service Provider (HSP), all of the services a business needs (high-speed internet access, Internet services, local and long-distance calls and advanced IP-services) can be provided by the VAR. This allows the VAR to take advantage of the Service Provider scale and infrastructure, increase the scope of relationship with the customer, and generate additional recurring revenues from the on-going relationship. All of these services can be delivered via a certified Linksys One Hosted Service and managed via a secure, branded Web-portal. VARs will benefit from the following opportunities:

  • Ongoing revenue stream: Resellers can capitalize on the growing demand from customers who want hosted business-quality services and applications, such as cost-effective Voice over IP (VoIP). Resellers will have many financing options available to them from their Hosted Service Provider that will create choices for the end user and higher margins associated with the total contract value of the service provided.
  • Minimize cost of sale and support costs: Linksys One is designed to be simple and cost-effective to install, manage and expand - resellers benefit through increased sales productivity, lower service costs and increased margins.
  • New revenue opportunities: By managing the customer's communication system and applications, VARs gain a recurring revenue stream and an ongoing relationship that increases customer loyalty and retention. Linksys One resellers can utilize this momentum and create a foundation to sell additional high-value hosted services in the future.
  • Selling true convergence: It has historically been a real challenge for Data VARs and Voice VARs to managed converged installation, but with Linksys One training and certification, VAR¬ís can become specialized in both Voice and Data. This dual expertise may lead to additional support services and additional revenue.
  • Differentiated product with retail: VARs will benefit from the differentiation between products they sell and those in retail channels. VARs will be required to go through specialized training and certification to sell and support the Linksys One solutions.

For Service Providers:
With the Linksys One solution, Service Providers are well-positioned to attract new subscribers and Reseller partners, build customer loyalty and drive new revenue streams. Moreover, a self-service web-based branding and provisioning system will enable Service Providers and resellers to cost-effectively provision and manage their own customers, resulting in higher customer satisfaction, faster rollout of services and lower operating costs. Service Providers benefit from Linksys One with the following:

  • Increased margins: The HSP and VAR become the single source for business communications, Service Providers can put affordable service convergence to work for small businesses with a complete hosted communications solution; while at the same time enabling a profitable transition of existing customers to IP telephony, faster services rollout of new IP services and opportunities to generate new revenue streams through a VAR based model.
  • Rapid service creation: Linksys One is designed to reduce time to market for system integration with a solution that can be rapidly and easily installed at low cost. Linksys One 'plug and play' technology automatically provisions pre-configured phones, cameras, switches, access points and other LAN-attached devices in minutes.
  • New profitable revenue streams: A highly extensible services platform combined with an application hosting architecture and toolkit for 'sticky' services, creating an infrastructure to cost-effectively generate new revenue streams.
  • Service differentiation: Service Providers can cost-effectively deploy the most profitable services and high-value applications that small businesses want - on one integrated services platform.
  • Extended sales reach: By teaming with Linksys, Service Providers can tap into the pool of Linksys VARs to provide the Linksys One solution and Service. This extended reach provides additional agents to sell and inform small businesses of their voice and data services.
  • Extended sales reach: By teaming with Linksys, Service Providers can tap into the pool of Linksys VARs to provide the Linksys One solution and Service. This extended reach provides additional agents to sell and inform small businesses of their voice and data services.

Linksys One Product Suite:
Linksys One includes a range of new products specifically developed for the small business customer. The same level of integration and smart simplicity applies to every Linksys One product.

  • Linksys One 16-Port Services Router (SRV3000): The cornerstone of the Linksys One Services Platform and vision is the Services Router. This integrated switch and router provides for plug and play installation and includes advanced features that allow a small business to protect its network and improve productivity.
  • Linksys One Color Manager IP Phone (PHM12000): This SIP-based Color IP Telephone offers both the cost-saving advantages of Voice over IP (VoIP) and the voice quality and features of a small business key phone system.
  • Linksys One Analog VoIP Gateway (VGA2000): The Linksys One Voice Gateway increases the flexibility of the system, allowing businesses to integrate their existing analog phones and fax machines. Access to PSTN networks is enabled locally and also provides a failover system in case of service outages or emergency 911 calls.

Linksys One is a true "Services Platform" capable of enabling growth with new technologies and applications because all Linksys One products are plug and play. They determine the optimal configuration and are functional the minute they're connected, eliminating the need for skilled IT professionals on staff or on-site. Linksys One's unique network discovery process and automated configuration provide new networks, additions to the system, and new technologies with only limited-touch deployment.

Linksys One - Cisco's Seventh Advanced Technology:
Linksys One will become the seventh Cisco Advanced Technology under the name Hosted Small Business Systems (Hosted SBS). The other six advanced technologies are home networking, enterprise IP communication, optical networking, security, storage area networking and wireless.

The Linksys acquisition in June 2003 has enabled Cisco to market to consumers world-wide while also investing in the development of end to end systems such as Linksys One that can help small business compete and operate proficiently while enabling service providers with technology to better serve their customers.

"Small businesses are looking for complete communications solutions that are simple to install and manage with sophisticated service offerings that reflect their business model, budget, and internal expertise. Hosted SBS such as Linksys One are the answer," said Charles Giancarlo, Cisco Chief Development Officer and Cisco-Linksys President. "Small businesses are the fastest-growing customer segment for Cisco and we think Hosted SBS will be a high growth area. As the next advanced technology, we believe Hosted SBS has the potential to grow to a $1 billion business and Cisco-Linksys can achieve a leading market share position."

Availability
In the US, Linksys One solutions are scheduled to be available regionally in Q1 of 2006, with full national deployment next summer. Asia Pacific rollouts of Linksys One will begin in Australia in Q2, 2006. Linksys One will be available in Europe, the Middle East, Africa, South America, and other parts of the world in the latter half of 2006. In the interim, Linksys is actively recruiting VARs to become trained and certified to sell Linksys One solutions when they become available.


About Linksys
Founded in 1988, Linksys, a Division of Cisco (NASDAQ: CSCO) is the recognized leader in Voice, Wireless and Ethernet networking hardware for consumer, SOHO and small business users. Linksys is dedicated to making networking easy and affordable for its customers, offering innovative, award-winning products that seamlessly integrate with a variety of devices and applications. Linksys also provides award-winning product support to its customers. For more information, visit www.linksys.com.

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Linksys is a registered trademark or trademark of Cisco and /or its affiliates in the U.S. and certain other countries. Other brands and products are trademarks or registered trademarks of their respective holders. Copyright © 2005 Cisco All rights reserved.

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