* Tandberg's video endpoints and network infrastructure solution will be integrated into Cisco's collaboration architecture
Cisco has announced it intends to acquire Tandberg, a global leader in video communication for a cash offer estimated at about $3 billion. Cisco has been very active in promoting its high-end, high-definition telepresence solutions, and the Tandberg acquisition allows Cisco to extend its video conferencing solutions with the broad portfolio Tandberg offers.
Cisco has announced it intends to acquire Tandberg, a global leader in video communication for a cash offer estimated at about $3 billion. Cisco has been very active in promoting its high-end, high-definition telepresence solutions, and the Tandberg acquisition lets Cisco extend its video conferencing solutions with the broad portfolio Tandberg offers. The acquisition is expected to close during the first half of calendar year 2010 subject to customary closing conditions and regulatory approvals.
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Following a successful acquisition, Tandberg’s video endpoints and network infrastructure solution will be integrated into Cisco’s collaboration architecture, enabling “intercompany and multi-vendor interoperability and ease of use across the full product portfolio — from desktop to immersive, multi-screen TelePresence,” according to the companies’ statement. This interoperability will benefit Cisco’s customers, but also competitors and partners by accelerating customer interest in video collaboration globally.
Cisco considers Tandberg’s 1,500 employees to be “extremely important” to continued innovation and development, and once the deal is complete, Tandberg’s CEO Fredrik Halvorsen will lead a new TelePresence Technology Group, reporting to Marthin De Beer, senior vice president of Cisco’s Emerging Technologies Group.
Our observations: While Cisco’s Telepresence has been criticized by some for a lack of multi-vendor interoperability, Tandberg has traditionally been active in multivendor support, so we expect to see increasing interoperability both between Cisco and Tandberg, and with other companies’ video systems. Cisco also will inherit Tandberg’s management system, which could be used to help Cisco’s video portfolio across the board.
What will be interesting to watch is how a Cisco-owned Tandberg will work with other competitors in the unified communications (UC) ecosystem. Tandberg has strong UC partnerships with HP and Microsoft, while Cisco’s relationships with these two other companies ranges from peaceful cooperation to direct competition — especially in the UC space. And we’re not sure how Polycom (a direct Tandberg competitor) will be affected, although we suspect Polycom will continue to successfully take on Tandberg solutions regardless if these are sold by Tandberg or a Cisco. But we do know this: the UC market and the video communications market is likely to see continued upheaval and some dynamic “coopetition” as infrastructure suppliers compete for share in this growing market.
