Cisco plans to integrate Umi with its Business TelePresence line and sell it through enterprise and service provider channels, according to a brief statement that outlined the company's shake-up of its consumer businesses. As part of the same reorganization, Cisco plans to , "refocus the Home Networking business for profitability" and look at other possibilities for its Eos media business. The moves come after weak financial results that led Chairman and CEO John Chambers to call for a refocusing of the company.

While the company remains committed to video and collaboration as top priorities, it is shifting emphasis away from its consumer businesses, which have not performed well recently. The reorganization may turn Umi into something quite different from its original concept.

Umi was designed to . It uses a console and a set-top camera and microphone along with the customer's own HDTV. But the system seems to have debuted, in October 2010, at too high a price. The equipment cost US$599 and required a service for $24.99 per month. Last month, Cisco , while cutting the service cost to $99 per year or $9.95 per month. The cheaper box also required less bandwidth.

Analysts said cost, especially the service charge, has dogged the product.

"There just weren't enough features there to get people to pay," said Yankee Group analyst Zeus Kerravala.