Cisco Betting That Your TV Is About To Get Networked Too
from the more-cpes-for-cisco dept
You used to think of Cisco as being a company that supplied networking hardware to big enterprises and (to a lesser extent) telcos. However, two and a half years ago, they snuck into the home by buying Linksys. A few months ago, the rumor was that they were out kicking the tires on Nokia to make it clear that networking and telecommunications was a single world. Of course, such a deal didn't make much sense for Nokia and didn't go very far. However, it appears that the dealmakers at Cisco have been looking around for convergence-related "big" deals lately. While they're famous for buying plenty of startups and quickly integrating their products into the Cisco machine, they seem to be thinking bigger. The news is breaking that they're spending $7 billion on Scientific Atlanta, a major supplier of set-top boxes to the cable industry. The bet here is clearly that the telco world and the internet world are quickly merging. Televisions will soon be "on the network" in one way or another, and this gives Cisco a jumping off point to be a part of that trend. Still, swallowing a company that big won't be quite as easy as their normal startup devouring process. Either way, Cisco clearly believes your home is about to get a lot more networked, and they want to be supplying the equipment when it happens.