RGB Networks has implemented a realignment in which the company will deemphasize hardware development in favor of software products and a cloud-based approach.

Simone Sassoli, RGB’s VP of marketing and business development, declined to comment on reports of a layoff of nearly one-third of its employees, other than to say that any reduction in workforce will not impact the company’s strategy.  

Sassoli also said the company is not discontinuing any of its products.

He did confirm, however, that there will be no more hardware development on the company’s Broadcast Network Processor (BNP) products. Those products, he explained, “are competitive and will remain so for years.” Any additional development on the BNP line will be in software.

Sassoli stressed the company’s success with multi-screen delivery, citing installations with Comcast, Charter Communications, Rogers Communications, Mediacom, and other MSOs.

But the company’s strategy will be increasingly cloud-based, focusing on transcoding & packaging, ad insertion, and network DVR. The company is using the CloudXtream name as an umbrella for its cloud-based products.

Ad insertion is the biggest opportunity, Sassoli said, noting that RGB has already met with some success in this area. For example, RGB is performing all ad insertion in content delivered to IP end devices (PCs, tablets, etc.) on Comcast Xfinity, he said.

The company’s AIM (Ad Insertion in Multi-screen) product is able to insert ads in linear, on demand, and cloud DVR streams. Sassoli said it is doing two of those three now, and will soon be doing the third.   

The company is competitive with its transcoding products, and is also gaining traction in nDVR, he said.

“RGB is still kicking butt,” he said.