There is much speculation around the web about possible next moves for Cisco Systems. Specifically, who will Silicon Valley’s network giant acquire next?
Cisco Systems bought Linksys back in ’03 in a move that lets them compete in the home networking market. Now Cisco is closing in on a $6.9 billion US dollar deal for the popular digital cable terminal and PVR manufacturer Scientific-Atlanta (SA). Adding Cisco’s purchase of Danish company Kiss Technology for $61 million US dollars, SA is home electronics acquisition number three.
What’s next for the wireless communications giant of Silicon Valley?
Earlier in January Cisco announced its intentions to enter the consumer electronics market with a line of home theater Prior to that announcement Vice President and GM of Cisco’s Linksys division Chris Stevens said:
"If you want to figure out where we are going, just look at the building blocks we are already assembling. The elements we already have in the portfolio provide us key capabilities that fit into an end-to-end solution."
The end to end solution Cisco is leveraging itself to provide is the kind of emerging technologies that will be the cornerstone of the plan dubbed Quadruple Play.
Quadruple Play is a plan to provide one all encompassing wireless TV/telephony super-service to subscribers. The venture is being plotted jointly between various communications high rollers including Time Warner, Comcast, Cox Communications, Advance/Newhouse Communications and Sprint Nextel. It will use the kind of wireless video and communications hardware that will soon be the domain of Cisco. This is the kind of end-to-end solution Chris Stevens wants to develop. Cisco clearly has its eyes on merging all broadband technologies under their technology. One Cisco System to rule them all.
Cnet says Cisco and TiVo may be planning a partnership. Could such a partnership also lead to an acquisition? Neither company will say anything for sure but TiVo gives them access to far better PVR software than SA and a significant but dwindling customer base in North America.
What other high profile deals could be on Cisco’s horizon?
Consider the number three games console, Nintendo. A key competitor to Cisco in the wireless home arena with its Xbox 360, Microsoft has shown the value of games hardware. Gaming is another opportunity for broadband communications penetrate the living room. Nintendo also has the top handheld gaming platform which is also a wireless communications device. Also consider the tiny Sling Media INC. They created the Sling Box one of last year’s most celebrated home networking devices that converts television into IP packets transmitted over the internet.
Cisco won’t say what’s next on their agenda. But they’re definitely gearing up to gain a foothold into your house.
Wayde Robson
www.hometheaterfocus.com 
02-02-2006, 12:16 PM
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