CISCO's largest acquisitions strong settled family network

Reported in November 20th, foreign media today published article that CISCO on Friday announced the acquisition of the largest TV set-top box providers and Scientific-Atlanta video transmission technology, the final price of the transaction will reach $5 billion 300 million. Insiders pointed out that the move is one of the giants of the network device to boost the share price and seize the market growth strategy, CISCO had previously IP technology integration and network of the family has been clearly identified.

CISCO network fusion concept for a period of time, according to the idea, in order to realize the data, voice and video transmission in a network, and cable operators in the internal network to achieve the same network transmission above three, most of the cable company and the telephone company network using IP (Internet) transmission protocol, the router and switch equipment are provided by CISCO. With the cable and telephone companies through the IP network to provide consumers with high-speed Internet access, telephone and video services, these ideas finally entered the family life.

With the CISCO Scientific-Atlanta deal is by far one of the largest mergers and acquisitions, in this transaction, CISCO will provide cable and telephone operators to provide the most equipment, help them provide complex video services to consumers. That is to say, the combination of IP network equipment maker CISCO and Scientific-Atlanta, a cable equipment maker, will revolutionize the transmission of television content.

The CISCO business development department executives Nader - Hope said, "the network market has experienced great changes, provide TV content using the IP network has become a trend in the world, I believe that CISCO will be through the acquisition of new network content service providers to provide a full set of solutions."

Network market changing examples can be seen everywhere in the United States, two of the largest telephone company Verizon and southwest Baer (SBC) has invested billions of dollars in new network construction can provide television services, global hundreds of phone companies plan through the IP network providing service.

Cable company also from IP technology to see the tremendous business opportunities, more and more users are turning to digital content services for high-definition content demand is up sharply, IP technology can help cable operators to improve the efficiency of the original network.

Through the IP technology to discuss the transmission of video content has been carried out for a long time, but for various reasons has not been much progress, and today, this vision has begun to translate into reality." Mike - CISCO router group general manager and senior vice president volby (MikeVolpi) said in a conference call.

IP technology will bring new changes to the television service, the audience not only enjoy the show passively, can also interact with the program, for example, can choose the camera while watching a baseball game when the audience's point of view, and can be ordered at any time to watch the movie.

In connection with the bottom of the network operators different devices, CISCO has long been a leading supplier, but the transaction will make CISCO in the next generation of IP network to become a true end to end device provider. Video transmission needs large bandwidth, and there are a lot of complicated technical requirements, so the operator should give priority to meet the above requirements in the establishment of the network, while the voice and data transmission for bandwidth and quality requirements are not high, so it is not difficult to establish IP network.

CISCO proposed IP fusion has been conceived for a long time, it was very early to predict IP technology will be a milestone in the digital home. CISCO acquisition of Linksys in 2003 is also for this reason, CISCO entered the consumer market with the transaction, training in the home network equipment brand image. With the help of Linksys's product line, CISCO has become one of the largest suppliers of home wireless router devices, the wireless device to achieve multiple connections between the home PC and notebook. CISCO also predicted that the IP revolution in the home will go beyond the PC itself, such as television and other entertainment products will be in the home network until a major role.

The Yankee Group Analyst - SORS Kelafula (ZeusKerravala) said that the family entertainment and network will form a huge market, and CISCO certainly would like to share a cup of soup.