Tuesday, November 22, 2005

Why Cisco is smart buying a cable box maker Scientific Atlanta

On 11/18/05, Cisco announced that it is buying the cable box maker Scientific-Atlanta for $6.9billion. Cisco is the leader in routers and switches, which connects networks together on the Internet. So why has Cisco bought consumer router maker Linksys and now a cable box maker? They're moving to the consumer side of business, and by buying up Scientific-Atlanta, it gets Cisco into the cable provider market. They know IP-based infrastructure, and positioning themselves to move into the consumer side of the business gets them closer to being the network infrastructure provider in businesses as well as in the home. This deal allows Cisco to push the IPTV (internet protocol television) gear to cable companies, phone companies, and media. More and more people are getting their media entertainment online and IPTV has the potential to be a global major market, so with Cisco boxes that serve as access points for businesses and home entertainment, they're looking toward the future.


Post a Comment

<< Home