Cisco Systems Inc. (CSCO), the company perhaps best known for Internet protocol-based networking and other products, has launched its own tablet PC, called Cius. Cisco describes the device based on Google's Android platform as "an ultra-portable, mobile collaboration enterprise tablet that offers access to essential business applications."

The main features of the Cisco Cius tablet are:

* 7-inch multi-touch tablet form factor;

* Backlit, WSVGA capacitive touchscreen LCD with 1024 x 600-pixel effective resolution;

* Support for various multi-touch gesture commands;

* Video through forward-facing camera for HD video communication and 720p 30-fps HD video encoding and decoding;

* Rear facing camera for Capturing 5-megapixel still pictures or VGA-quality video;

* Intel Atom 1.6-GHz processor;

* HD Soundstation supports Bluetooth and USB peripherals, 10/100/1000 wired connectivity and a handset option;

* 32GB of onboard storage space;

* 802.11a/b/g/n Wi-Fi support, Bluetooth and GPS.

* Bluetooth 3.0 + Enhanced Data Rate (EDR) for un-tethered headset and keyboard connections;

* Android-enabled applications; and

* Detachable and serviceable 8-hour battery for a full day of work

On initial review, the features are typical to tablets hoping to rival Apple Inc.'s iPad, which has already captured more than 80% of the market. Research In Motion's PlayBook, Samsung Electronics Inc.'s Galaxy Tab and Motorola Mobility Holdings Inc.'s Xoom have tried to be iPad killers, but have barely made a dent in the market.

But hold on -- while most tablets are targeting the mass market or consumers, Cisco is targeting a different market for its fledgling tablet device: the corporate and the enterprise, where its strength and distribution channels are already in place.

See that phone on the left: it's the standard all-new Cisco IP device. However, when you leave the office, you can just pick-up the Cius screen, which becomes as stand-alone tablet.

In addition, with the Cius, users can work together from anywhere by editing or working on documents and content stored locally or centrally in a cloud, and can hold multi-party video conferencing with dual front and rear-facing cameras.

"Unlike the hugely popular Apple iPad, the seven-inch, Android-based Cius was designed with the company's existing customer base in mind and is, in Ovum's opinion, destined to replace the corporate desktop feature phone that Cisco sells today. Cisco has also launched an "enterprise" app store, AppHQ. This new service addresses many of the concerns of business and IT managers, but its Cius-only focus limits its utility and value, " says Richard Edwards, Principal Analyst of Ovum, part of the Informa Group.

Business Features

Cisco says the Cius is a tablet built for business. It is designed to help organizations capitalize on the value of mobility by enabling anywhere, anytime access to important business features:

* Campus mobility with IEEE 802.11 a/b/g/n, and broad mobility with 3G (4G planned) cellular support;

* High-resolution multi-touch color display with an intuitive user interface;

* High-definition (HD) video with Cisco TelePresence solution interoperability;

* Virtual desktop client integration (VDI) and cloud computing;

* Full range of Cisco Collaboration and Unified Communication applications;

* Open access to the Google Android Market with appropriate IT controls;

* Expanded Android applications for business, linking Cisco Collaboration APIs through a software developer kit (SDK); and

* Accessories, sold separately, which include base stations for enhanced capabilities and carrying cases for stylish yet functional protection while mobile.

In other words, the Cius extends the productivity benefits of Cisco collaboration applications to a highly secure mobile platform. In addition, it is ideal for video streaming, multi-party conferencing, e-mail, messaging, browsing, and sharing content.

Edwards notes that the market for hard IP phones is estimated to be 15-18 [million] units this year, and Cisco's device will probably account for approximately one-third of this number. However, he notes that knowledge workers in particular are abandoning their feature phones in favor of the smartphone.

"The Cius presents a reasonably good replacement for an IP-based feature phone. Key features of the device include support for the company's high-end video conferencing system and tight integration with its business social software, Cisco Quad. However, perhaps the most alluring feature of the Cius is its ability to replace the traditional desktop PC through the use of virtualized desktop infrastructure (VDI)," Edwards points out.

"To accomplish this transformation, the Cius must be used alongside desktop virtualization solutions from the likes of Citrix, VMware, or Wyse. The transformation of the Cius tablet into a PC replacement is completed by using the optional (and somewhat expensive) HD media station with its USB ports, wired Ethernet connectivity, and handset option. To some, this configuration will sound remarkably like the ICL One Per Desk (rebadged the "Merlin Tonto" by BT) of the early 1980s, but this time the user can put it in his or pocket."

Enterprise Tablet

Apple, which has already sold more than 20 million units of the iPad since their April 2010 debut, has been able to reach consumers of all ages, including business users on the go, because of the App Store. The App Store already has more than available 90,000 applications optimized for the iPad, in addition to the more than 200,000 iPhone apps that can also work for the Apple tablet. The Office Pro suite and other productivity apps are available in the App store.

Ovum acknowledges that Apple's iOS devices, such as the iPhone and iPad, have already scaled the corporate firewall and are in use daily within organizations large and small. Currently most iOS devices are being used to access corporate email and a collection of cloud-based services. Commercial apps can be purchased, downloaded through Apple's App Store.

"However, if an organization wants to distribute an app to its employees, the app must be routed through Apple's Developer Enterprise Program - a process of which some enterprises are wary. In addition, IT managers want to control what app users have access to, lest they introduce risk and compliance issues," Ovum's Edwards points out.

Cisco has launched the Cisco AppHQ, an enterprise-class application ecosystem. "The Cisco AppHQ represents a significant step forward in the app market as it provides business users, IT managers, and developers with a trusted source for tested and validated business-centric apps," Edwards says.

"Cisco AppHQ Manager builds on the capabilities of AppHQ and provides IT managers with much-needed administration and control facilities. Using AppHQ, organizations can control which apps users have access to (including Android Market and Amazon AppStore) and how these are paid for. Today, AppHQ is solely for Cius tablets, but Cisco has not ruled out supporting other tablet devices in the future. This is something Ovum believes is crucial to ensuring the long-term success of this important market initiative."

Android OS

Although Cisco provides only devices and systems for the enterprise and is aiming to sell the Cius to enterprise business, the Cisco Cius won't be "boring" as you can still download Angry Birds, other games, and thousands of other apps. Cisco has opted to use Google's Android platform instead of coming up with its own operating system. So you can access and use the 200,000 Apps available on the Android Market.

While the iOS, Apple's iPad operating system is proprietary and close-modeled iOS, the Android OS is open source, allowing for faster innovation and wider adoption. More phone and tablet manufacturers are using the Android. With already more than 200,000 apps available on the Android Market, the number of Android apps is expected to surpass the Apple apps, according to forecasts by Germany-based research2guidance.

* * *

Judging from the trend, the iPad will continue to dominate the market for iPads in the years ahead. But Apple won't be able to penetrate the business enterprises segment -- which buys equipment in bulk or packages -- because Cisco is offering a tablet with features more appropriate for business.

Although the iPad has its own productivity suites, enterprises are wary about distributing iPads to executive and employees due to issues like managing the devices, handling security, and sharing content. The Cisco Cius gives businesses a justification on equipping mobile workers with a tablet device.

The Cius will be available exclusively to corporate customers starting July 31st.

Pricing is expected to be $700 to $750 per unit.

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