CNet has an article today about Cisco targeting the consumer security market. Here are a few (somewhat random) thoughts on the subject:

Summary:

1) Does this make sense for consumers?

With so many laptops out there and little attention to the home network, I think this will be a tough sell in the near term. I fully expect that Cisco’s marketing machine will make it more interesting. As long as the software is fairly transparent, it is a reasonable option for those with desktops. With the software built into the linksys devices, they have a reasonable chance of success. However, lots of options are available to consumers – I think it will be an uphill battle and at this stage they are surrounded (av on the endpoint and services in the cloud).

2) Does it make sense for Cisco?

They must have bought Linksys for a reason As I said above, I think Linksys could do some damage in the home server market and then security would become more important and more obviously necessary.

3) What potential obstacles are there to Cisco’s plan?

There are lots of substitutes and still little cohesion with something called a "home network"…

4) Does this put Cisco into competition with Symantec and McAfee and other traditional security companies, but not in the traditional way?

In a sense, yes, but not really.

5) Do you see Cisco as being able to deliver these security features as well as support them for consumers?

I assume they will follow their traditional acquisitive strategy wherever they need to fill any gaps. I don’t expect delivery to be a problem.

6) How big of an opportunity could this be?

Well…. They are probably calculating 100 million households times maybe $5/month but many cable providers are giving security software away, so I don’t think that’ll be the case. It’s going to be a marketing game. I don’t think the consumer can lose, per se, but there are so many options that I wouldn’t place a lot of faith in any near-term revenue opportunity for this.

I think it is an interesting play, and obviously you can’t rule out Cisco [Linksys] with anything. I think they will face stiff competition from the cable/phone companies who can offer subscription services without in-premises devices. The point where the service providers may be vulnerable is when you start getting servers in the houses, and I don’t expect that for quite some time (5 yrs?) for most. I suppose another alternative would be building this into a WISP (wireless ISP).