Michael Mace on the Mobile Opportunity blog writes about the aftershocks of Cisco shutting down Flip:

Does that have any practical impact on Cisco’s business?  Not immediately; business is business.  But it will probably be a little harder for Cisco to make alliances and hire ambitious people in the future.

Too often, companies are narrow-minded in their decision making. Cisco looked at Flip as a cost and non-strategic business unit, so they shut it down. The problem are the unintended consequences, mainly the difficulty they’ll have to hire talented people that don’t trust the company anymore. I don’t mean the run of the mill job-seeker, I mean the absolutely brilliant people that could get a job anywhere at any time.