Did Cisco Just Destroy a Winning Business?

Last year Flip cams were everywhere. They are the cheap and easy way to get HD video onto Facebook and Youtube (NASDAQ:GOOG). Unfortunately, Cisco (NASDAQ:CSCO) never helped Flip cams evolve into smart phones such as iPhone (NASDAQ:AAPL) and Droid.

If consumers are converging to one device, what in the world was Cisco planning to do with Flip? Is this a sign Cisco has lost its vision? Or, is it a sign that someone in business development needs to be canned immediately for wasting $590 million?

Although John Chambers is trying to reignite investor confidence in a stock which seems to be having a daily love affair with the “new 52-week lows” list, today’s shuttering of Flip exposes how deep and offtrack Cisco really is.

On the flip side (pun intended), Apple (NASDAQ:AAPL), Google, Motorola (NYSE:MSI), Nokia (NYSE:NOK), and Research in Motion (NASDAQ:RIMM) can rest a bit easier that at least for the moment a deep-pocketed Cisco won’t be creating more competition in an already fiercely competitive telecom war.