Socialcam, a mobile video app launched by Justin.tv for the iPhone and Android, hit the scenes back in March during SXSW.  Not two months later, the app has undergone changes and is launching a 2.0 version. Dubbed as ‘Instagram for Video’, it streams recently recorded videos by your friends, in which tagging comes handy via Facebook Connect. The first month was glorious for Socialcam, raking in 250,000 downloads, the majority (75 percent) of which is from iOS.

The update is available only for the iPhone for now, but Android version will follow shortly after. The updated app has the ability to save recorded videos to users’ iPhone library, as well as allow users to upload videos from the iPhone library, making it possible to share videos to your friends via Socialcam, but use other software to record it. This is especially helpful when you want to share non-realtime videos that have already been enhanced with effects and such.

Moreover, users are also given the ability to import their videos to more social media outlets including Posterous, Tumblr, Dropbox, Twitter, Facebook, Email, and SMS. The company has also made the app more laid-back for uploading the videos, eliminating the hassle of having to go through complicated instructions and adding messages to describe the videos, making it optional now. The entire process requires fewer taps this time.

Socialcam also proudly announced that among those who were tagged in videos via Facebook Connect, 10% of them signs up to join the service.  A video is shared an average of 1.3 times, and majority have pets and babies on them.

While Socialcam is happy with its initial success, Cisco’s Flip is put to rest forever, a move which caused Cisco to cutback 2 executives, 500 employees, and cost the company $590 million when they acquired it back in 2009. Cisco says that the decision to shut down Flip sprung as an effort to regain its stance, that which is cloud service as its focal point this time. While Cisco is firm on its stand, people such as Pixability CEO Bettina Hein believe that Cisco pulled the plug of the wrong product.

“We believe Cisco is wrong in shutting down a profitable division with a wonderfully designed, simple product. Currently, smartphone video can’t compete with the quality and speed of the Flip HD yet – it’s just too impractical. Frankly, though, I’m not surprised that this has happened. When Cisco acquired Pure Digital I suspected that Flip wouldn’t have much of a chance in a company that has been focused on enterprise-level products. Still, it seems incredible to me as an entrepreneur that Cisco would spend almost $600 million on an acquisition to shut it down after 2 years. I would have at least have expected them to sell the unit – perhaps to Kodak or another CE manufacturer.”

And not its just Flip, Google is also shutting down Google Video, and Yahoo, closing Buzz, to the dismay of early adopters.