Archive for the ‘Networking’ Category

Cisco Goes on Buying Spree…

Monday, March 8th, 2010

Cisco has been going on a buying spree after witnessing the sharp rebound in quality technology shares in 2003.  After cutting about 20% of its workforce, it has been using extra cash to purchase new companies and ideas.  According to management, Cisco had been preparing for the recession since 2007.

Cisco’s acquisition strategy is what has propelled it further than competitors Alcatel and Nortel.

The company acquired camcorder manufacturing company Pure Digital Technologies Inc. for $590 million, video-conferencing company Tandberg ASA for $3.4 billion, and wireless equipment manufacturer Starent Networks for $2.9 billion.

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In addition, Cisco is funding 30 startups, up from its usual 20.  If all successful, the startups could generate $30 billion in future business for the company.  Initiatives include smart grid technology to manage the power grid.

Unfortunately, Cisco has been expanding in new technologies while losing market share in core business lines such as switches and routers, where it lost 5% market share.

For more information, please check the following source: WSJ