Source: http://blogs.wsj.com/digits/2011/02/22/cisco-pulls-plug-on-web-email/?mod=WSJBlog&mod= Cisco Systems is pulling the plug on its Web-based email service for businesses a little over a year after the networking giant first introduced the product in November 2009, the company announced in a blog post Tuesday evening. Cisco said it is halting investment in Cisco Mail because customers “have come to view their email as a mature and commoditized tool versus a long-term differentiated element of their collaboration strategy.†The move suggests Cisco failed to gain as much traction as Google and Microsoft in the hosted email market. Cisco said customers appear to be more eager for “social†business software and video applications, areas in which Cisco also has products, adding: “Cisco employees who built and supported the Cisco Mail product will be reassigned to other collaboration products and services that customers view as more strategic.†According to a Cisco website, Cisco Mail cost $3.50 to $5 per user per month, plus $1 for “Blackberry support,†and gave users 5 gigabyte mailboxes. That compares with a free version of Gmail for up to 50 seats or Google Apps for businesses, which includes 25 gigabyte mailboxes and other features, for $50 per user per year. Microsoft’s BPOS Suite, which includes online versions of its Exchange and SharePoint software, is $10 a month per seat. The announcement comes as Cisco stumbles in other areas including its core switching business, which posted a 7% revenue drop in the most recently reported quarter amid growing competition. Cisco also announced Tuesday that it had appointed Executive Vice President Gary Moore to the new position of chief operating officer to help Chief Executive John Chambers manage Cisco’s forays into dozens of new businesses as it searches for revenue growth. That news came after two high-profile executive departures—of consumer head Jonathan Kaplan and chief marketer Susan Bostrom —in as many months. Cisco couldn’t be reached immediately for further comment.
