"They concede as it's impossible to compete with iPad. They are better off to focus on enabling a great video experience, which is not Apple's business. I am sure the channel has issues selling Cius, so now Cisco can just focus on supporting any type of video endpoint, not just their own," Arnold said.

Arnold compared this move to when Cisco stopped development of its Flip camera. "It's the same as Flip. Endpoints aren't a great business," he said. "Also, their telepresence growth has slowed because there's too much competition coming now from low-cost desktop video. So, they need to scale back and focus on where they can get growth now.

The bring-your-own-device trend, or , played a huge part in Cisco's decision to drop the Cius from its product portfolio. Winge said Cisco is facing a workplace that is no longer a physical place, but a blend of virtual and physical environments, where employees are bringing their preferences to work. BYOD is the new norm where collaboration has to happen beyond a walled garden, and any-to-any connectivity is a requirement, not a "nice-to-have."

Cisco sponsored a study recently that showed the vast majority of U.S.-based firms are now adopting BYOD programs.