Computer World Canada Magazine

Cisco buy paves way for video plans

“I don’t think this will take anything away from Cisco’s enterprise market,” said Mabrucco, who was formerly a marketing

BY MARK ELS acquisition of Scientific-Atlanta according to a former official with company IDC Canada Ltd., said manager at Cisco Canada. “It
Inc., but the US$6.9-billion Cisco Systems Canada Co. the acquisition is not so much a just makes the company more
Cisco’s enterprise business focus buyout will strengthen its stake Vito Mabrucco, managing di- consumer play, as it is targeted at relevant to the service provider.
will be unaffected by its planned in the service provider market, rector of Toronto-based research the service provider. Cisco already does voice and
data, and this is now a position
in video.”

According to Cisco, Scientific-Atlanta will become a division within the company’s routing and service provider group and will operate as a separate business.

we_’ve _g _!At almost US$7 billion, Cisco’s purchase of Scientific-Atlanta is the company’s biggest acquisition 0ne d1g1tal since 1999 when it bought optical equipment firm Cerent Corp. for US$7.29 billion.

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“I don’t think
this will take
anything away from
Cisco’s enterprise
market.” — Mabrucco

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Scientific-Atlanta is best known for its Explorer set-top boxes for home use, but the company is more than just a device maker and has expertise in broadband video in a number of areas, according to Mike Volpi, senior vice-president, routing and service provider group for Cisco Systems Inc.

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Scientific-Atlanta also provides transmission networks and an integration, consulting and support business called SciCare broadband services. Volpi says Cisco is particularly interested in SciCare, which includes an array of management tools and services to help service providers support existing broadband networks and launch new ones.

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“Cisco’s share of the service provider space has been low, but the company now has a new market that it can sell into,” said Mabrucco.

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According to Mabrucco, the acquisition really completes Cisco’s service provider offering because Cisco already offers customers network equipment in the IP core. “Cisco now has an even broader offering to those same customers that they’re already calling on.”