Cisco Buys WebEx

In recent news, Cisco announced the acquisition of WebEx for $3.2 billion dollars. This equates to $57.00 for each WebEx share. Looks like some people at WebEx (2200 employees) are going to be RICH!

Cisco's main reason for the acquisition was to have more of a market than just expensive routers. Now they can add to the mix, Linksys (Home and Business Office products), WebEx (video conferencing), and voice. It seems to me that Cisco is making a move to services and trying to become the "big dog" in video/voice arena. Cisco is trying really hard to offer more value than just very expensive routers and firewalls. Since 2006, Cisco has acquired the following companies:
  • WebEx
  • IronPort Systems
  • Reactivity
  • Arroyo Video Solutions
  • SyPixx Networks
  • MeetingHouse Data Communications
  • Orative
  • Metreos
  • Audium


Seems that Cisco keeps searching the complete convergence of services over the IP. I recall when this started, 10 yers ago when SNA was around started for instance RSRB (now evolved to DLSW+) for token ring, I still recall sending RS-232 serial and synchronous ports traffic all over IP, this evolved to more and more protocols, you could even encap other protocols with GRE using some sort of IP tunnel. Then after a variety of data protocols over IP Cisco started VoIP, connect T1 PBX's voice trunks and pass it through an IP Cloud to the other PBX simulating a TIE line. Then IP Telephony, simulate a PBX using IP to interconnect the Phones, Central CPU and Gateways using LAN, WAN with IP, like trying to simulate a giant distributed bus (like the one existed in centralized PBXs and Peripherals) to different intelligent discrete servers each one interacting with each other. Now the race start continues for collaboration enviroments, video, telepresence, etc. And meanwhile we find something new and useful that we can mount over that workhorse (TCP/IP) you bet this will keep going and going...the limit...who knows, may be in future years we'll see teletransporting over IP... :D... B-IP-m me up Scotty....!!

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