Skip Links

Network World

  • Social Web 
  • Email 
  • Close

What did Cisco buy? A look back at eight acquisitions in '06

Cisco plows ahead into IP video and surveillance, as well as VoIP, security and switching with eight acquisitions in 2006
By Phil Hochmuth , Network World , 12/20/2006

Cisco made no blockbuster buyouts in 2006. The $256 million in announced cash and stocks it shelled out for acquisitions this year is chump change compared with 2005, when it began the year buying Airespace for $450 million, and ended it with the $6.7 billion Scientific-Atlanta merger.

But Cisco's moves in 2006 showed the vendor's urgency to find new markets for expansion. Video technology was a major draw for Cisco M&A money this year, with purchases of three companies in the video surveillance, video-on-demand and streaming content markets, respectively.

And there's a method to these mergers: "[Video] is the killer application for network load," Cisco CEO John Chambers said earlier this year. Bigger network loads beget bigger routers and switches, which beget more sales and market share for these products — which still brings in two-thirds of Cisco's product revenue.

Three other acquisitions in 2006 expanded Cisco's VoIP and collaboration technologies, while it also shored up a few of its core technology areas, such as security and Ethernet switching, with another two buyouts.

Here's a rundown:

SyPixx Networks

Acquisition announced: March 7

Headquarters: Waterbury, Conn.

Founded: 2004

Employees: 27

Acquisition cost: $51 million in cash

Market: Physical security

Cisco's first acquisition this year was SyPixx Networks, which makes IP video surveillance hardware and software. The deal gave Cisco another new toy for its Emerging Technology Group, a trend that would continue throughout the year.

Partner Content

NetScout is one of the world's premier providers of integrated network and application performance solutions.

www.netscout.com

Know First

Get Proactive — Move from Troubleshooting to Monitoring to Management with nGenius K2's Service Dashboard & Intelligent Early Warning Alarms

Watch the Video

Know Where

Get Rapid Performance Problem Isolation with nGenius Performance Manager and Diagnose Problems up to 70% Faster!

Learn More

Know Why

Get the Details to Validate and Solve your Toughest Performance Issues with nGenius InfiniStream and Sniffer Intelligence Modules

Read the Whitepaper

Comments (1)
Login
Forgot your account info?

What did Cisco buy? A look back at eight acquisitions in '06By Anonymous on December 21, 2006, 11:38 amSo I guess the moral of the story is... "If your goal is acquisition by Cisco, become a technology partner with Cisco." Re: This article.

Reply | Read entire comment

View all comments

Add comment
Anonymous comments subject to moderator approval. Register here for member benefits.
Have a NetworkWorld account? Log in here. Register now for a free account.

Videos

rssRss Feed
Save The Date!
What They Are Saying

and there is always a but... firebug doesnt work :(- Anonymous

Join the Discussion