By Don Clark 

SAN FRANCISCO-- Cisco Systems Inc. unveiled two special-purpose desktop computers for videoconferencing, along with a new service enabling users of different devices and services to connect for online meetings.

The new devices, called the DX70 and DX80, combine a monitor, video camera, microphone, telephone and other features along with a tabletlike computer powered by Google Inc.'s Android operating system. Cisco expects the devices to serve as easy-to-use alternatives to the collection of computers and accessories corporate workers typically use now.

Cisco's DX80, which has a 24-inch display, will be priced at less than $2,000. The DX70, which is smaller, will cost less than $1,000, the company said.

"These are new [price] levels for Cisco," said Rowan Trollope, a Cisco senior vice president.

Cisco, which announced the products at the opening of an event for customers here, is best known for networking hardware. But it has used acquisitions to build a major sideline in collaboration-related businesses.

The company in 2010 purchased Norwegian communications company Tandberg ASA for $3.3 billion, and before that purchased Web-based conferencing company WebEx for about the same amount.

Its new offerings come as Cisco and other makers of videoconferencing products and services have been challenged by free and low-cost alternatives, including the Skype service purchased by Microsoft Corp. In some cases, customers are also turning to standard PCs or other hardware and away from more costly gear that is dedicated for communications.

Cisco last week said that revenue in its collaboration business declined 12% to $892 million in its third fiscal quarter.

Chief Executive John Chambers, during a keynote speech at the event called Cisco Live, vowed to inject more momentum into the business--recalling an earlier promise to become No. 1 in data security products. "We are going to do the same thing in collaboration," he said.

Cisco's new online service--called Collaboration Meeting Rooms, or CMRs--is also a reaction to customer frustration that many competing conferencing offerings don't readily work together.

The offering is designed to break down such barriers, relying partly on a trend among videoconferencing companies to use common technical specifications that allow them to work together. It is designed to support meeting-room systems, as well as simpler conferencing options that are used on PCs with Web browsers or with apps on smartphones and tablets.

CMR services will be sold to both individuals and companies starting in mid-October, with prices in the "tens of dollars" a month per user, said Peder Ulander, a Cisco vice president of marketing. They will be operated from 19 data centers that are now used to run WebEx, and should be able to support millions of users around the world, he said.

The company's rivals aren't standing still, however. Polycom Inc., a longtime supplier of conferencing equipment, says it has already been connecting users of its products with Cisco's.

Companies launching new online conferencing offerings include LifeSize, a unit of Logitech International SA, while startups such as Blue Jeans Network have also claimed rapid growth.

Krish Ramakrishnan, a former Cisco executive who is CEO of Blue Jeans, says it has more than 2,000 customers, some of them with as many as 50,000 employees using its service. He said he believes the CMR effort is largely an effort to emulate the success of Blue Jeans in connecting different conferencing schemes.

"We are the original interoperability service," he said.

Write to Don Clark at don.clark@wsj.com

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