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When looking over Cisco's moves in 2005, industry watchers no doubt see a long list of muscle-flexing maneuvers.
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The router giant completed 11 acquisitions in 2005, including its much-heralded $6.9 billion purchase of video-system maker Scientific-Atlanta. The move puts Cisco in pursuit of the next big thing - an IP television-equipment market for consumers - with enterprise implications. As video creeps onto enterprise networks, Cisco will have Scientific-Atlanta's expertise to help develop infrastructure products.
The company also made news with its purchase of wireless LAN (WLAN) switch start-up Airespace, a $450 million deal announced in January and completed in April. This was an interesting "if you can't beat 'em, buy 'em" strategy, because Cisco previously dissed the idea of WLAN switches and thin access points. Industry watchers widely lauded the about-face as good news for the evolving WLAN market: Cisco gains a low-cost WLAN product line for midsize companies and wireless management technology to boost the functionality of its mainstay Aironet fat access points, and enterprise users get more options from their network vendor of choice.
Also of note are Cisco's April acquisition of InfiniBand switch maker Topspin Communications, through which it gains a toehold in enterprise data centers, and the Application-Oriented Networking (AON) strategy announced in June. AON will give application-processing powers to network gear. Likewise, Cisco's IP Interoperability and Collaboration System allows IP devices to be built with push-to-talk capabilities.
Clearly, Cisco is looking eagerly for new markets to conquer.