There appears to be a good old bidding war going on for another VoIP startup, Jajah, following yesterday’s news about the acquisition of Gizmo5 by Google, a source in Silicon Valley with knowledge of the talks informs us.
Details are scarce at the moment, but Microsoft, Cisco Systems and Telefónica Europe (O2) are said to be looking to buy the venture capital-backed company for a price ranging from $200M to $400M. We’re digging for more information.
Cisco is at it again. The company is acquiring the set-top box business of one of China’s largest cable companies, DVN, for $44.5 million. This is peanuts compared to Cisco’s latest acquisitions including the recent acquisition of ScanSafe for $183 million. A few weeks ago, Cisco announced a $2.9 billion acquisition of mobile networking infrastructure provider Starent Networks, which followed the $3 billion acquisition of video video-conferencing company Tandberg in late September.
Under the terms of the agreement, approximately $17.5 million will be paid up front, with an additional maximum amount of $27 million to be paid over four years based on sales performance. The acquisition is expected to close in the first half of 2010.
Cisco has added another company to its coffers with the acquisition of ScanSafe for $183 million. A few weeks ago, Cisco announced a $2.9 billion acquisition of mobile networking infrastructure provider Starent Networks, which followed the $3 billion acquisition of video video-conferencing company Tandberg in late September.
ScanSafe provides software-as- a-service (SaaS) Web security solutions for large and small businesses. Tom Gillis, Ciscos’s VP and general manager of its security technology business unit, said in the release that the acquisition would help further Cisco’s vision “to build a borderless network security architecture that combines network and cloud-based services.” ScanSafe’s service will be integrated with Cisco’s AnyConnect VPN Client, a virtual private network (VPN) product to offer a cloud-security service.
Cisco is on a buying spree this month. This morning it announced a $2.9 billion acquisition of mobile networking infrastructure provider Starent Networks, which follows on the heels of another $3 billion acquisition announcement two weeks go for Two weeks ago it announced the $3 billion acquisition of video video-conferencing company Tandberg.
You add $3 billion here and $3 billion there, and pretty soon you are talking about real money.
GigaOm last night already predicted an announcement was forthcoming, but now it’s official: Skype has announced that the beta version of Skype for SIP has been certified as interoperable with Cisco’s Unified Communications 500 Series for Small Business.
This will enable SMBs who manage their networking and communications needs with the Cisco solution to communicate more efficiently by directing their outbound calls to mobiles and landlines over Skype’s VoIP service.
The integrated solution will also allow employees to receive inbound calls from Skype users (now over 480 million strong according to the release). Earlier this year, similar arrangements were struck by the eBay company with Shoretel and SIPfoundry’s sipXecs platform.
By 2013, annual global IP traffic will reach two-thirds of a zettabyte, according to a new forecast of IP traffic issued by Cisco today. What is a zettabyte? It is a trillion gigabytes, dummy. (I had to look that up too). And that number represents more than a fivefold increase in IP traffic from today. (See the forecast in the tables below).
What is driving this growth is video. Cisco forecasts that 90 percent of consumer IP traffic (which makes up the majority of total IP traffic) will be video in 2013. Cisco also predicts that mobile data traffic will also be overtaken by video, reaching 64 percent of total mobile IP traffic by 2013. Part of this might be wishful thinking on Cisco’s part, which needs broadband usage growth to continue apace in order to sell its networking gear. But part of it is also the fact that these numbers are based on the percentage of bits traveling over those broadband pipes, and it doesn’t take a lot of fat video files to fill those up.
Earlier this month we reported that Cisco Systems had acquired Pure Digital Technologies, the makers of the popular Flip Video cameras. Today, Cisco officially announced the deal, which was for $590 million in stock. (We had the price at “north of $500 million).
Pure Digital will become part of Cisco’s consumer business group, which includes Linksys home routers and set-top boxes from its acquisition of Scientific-Atlanta. Cisco is calling the Flip cameras a new form of “visual networking,” whatever that means. In reality, the Flip is built for the YouTube generation. It is designed to take videos and immediately upload the to the Web. (Its output is a handy USB stick that flips open and plugs in directly to a computer). In other words, it is a device that encourages activities that consume a lot of bandwidth. As a networking company, Cisco wants you to use as much bandwidth as possible.
San Francisco based Pure Digital Technologies, the seven year old company behind the Flip Video line of video cameras, is considering a sale of the company, multiple sources have confirmed. One interested buyer is rumored to be Cisco.
Flip cameras – dead simple and small video devices that are tailored towards users who want to upload video to the Internet – have become massively popular. One source says the company has sold more than $200 million worth of the tiny cameras in the last couple of years. Based on reviews of the recently released Flip Mino HD, we’re not surprised. The devices cost between $130 and $230 and have spawned a large group of copy cat competitors.
One potential buyer, says a source, is Cisco, which has been more active recently in acquisitions. Ned Hooper, Cisco’s chief M&A guy, is said to be actively looking to buy or invest in consumer startups that offer high-bandwith-using services. A hot startup like Flip, which is helping to fuel the explosion in user generated video (much of which makes its way online), fits in perfectly with that strategy.
Layoffs in the tech sector are accelerating. It took exactly three weeks for tech layoffs to surge to 300,000, according to our Layoff Tracker. Since late January, when the tracker hit 200,000 layoffs, another 100,000 job eliminations have been announced or completed. In contrast, it took five weeks for layoffs in the tech industry to hit the 200,000 mark, and four months for layoffs to hit 100,000 last December. The total number of layoffs since we began tracking since the financial crisis began in late August is 300,093.
The past few weeks have particularly brutal for the technology space, with substantial layoffs announced by Pioneer (10,000), Cisco (3,000), Panasonic (15,000), NEC (20,000), Electronic Arts (1100) and AOL (700). Even Bloomberg and The Wall Street Journal, who both managed to avoid layoffs in the past few months, were forced to make cuts to their workforces. And Google, who was immune to layoffs until late January, continued giving pink-slips in the past three weeks with the company’s exit from radio. Sadly, a few start-ups weren’t able to weather the storm, with eBaum’s World cutting all of its workforce.
Cisco announced today that it has acquired Jabber, an open-source IM and presence protocol used by Google Talk and Gizmo, for an undisclosed sum.
Cisco will try to use Jabber as a means of improving its messaging offerings in the business world. Jabber’s technology enables collaboration across a wide array of presence systems such as, Microsoft Office Communications Server, IBM Sametime, AOL AIM, and Google, which made it an ideal target for the company.
Cisco is getting into the Web e-mail game with a $215 million purchase of five-year-old PostPath. PostWho? The company sells a Linux-based e-mail service to enterprises somewhat like Zimbra (which Yahoo bought for $350 million last year). PostPath is a fully functional in-browser Ajax client, and on the back-end it is trying to take on Microsoft Exchange. Cisco will likely add PostPath’s functionality to its WebEx collaboration service (it bought WebEx for $3.2 billion last year).
Who do you trust more, Google or Toyota? The answer might depend on where you live. In its annual corporate reputation survey of 60,000 people worldwide, the Reputation Institute finds that Google scores highest in the U.S., but is No. 2 worldwide after Toyota. On the global list, Ikea is No. 3, Johnson & Johnson is No. 5, and Walt Disney is No. 12. Apple doesn’t even make it into the top 25 (see below).
Using the same data, Forbes breaks out the top 75 companies in the U.S. In the U.S. alone, Apple is No. 17, HP is No. 18, Intel is No. 19, Dell is No. 25, IBM is No. 35 and Microsoft comes in at No. 43. Bringing up the rear is Motorola at No. 50, Cisco at No. 55, CBS at No. 62, and American Express at No. 75. (See partial list below).
These rankings are based on an opinion poll, but they just don’t seem right to me. How can Dell be No. 25, with all of its customer service issues last year? And why is American Express, which regularly ranks as one of the most admired companies in the world and one of the top brands, dead last?
It is instructive to compare some of these rankings to the top 100 brands, as measured by an estimate of brand value. (See below). Google, again is No.1. Microsoft is No. 3, IBM is No. 6, Apple is No. 7, Toyota is No. 12, HP is No. 16, American Express is No. 20, Intel is No. 27, and Dell is No. 41. About the only company the two rankings agree on is HP. These brand rankings feel like a better measure of reputation to me than the Reputation Institute’s survey.
What do you think? Take our own poll. Vote for the companies you trust or admire the most. Multiple answers are allowed.
Editor’s note: I put in BMW twice by mistake in our poll, so please only vote once for BMW if you vote for it at all. I’m keeping the existing poll up rather than put up a new one and throwing away the votes that have already been cast.
SoonR, a backup service focused on enabling access to your files from mobile devices, has raised $9.5M from Cisco Systems in a Series B round of financing. This brings the total funding for this two-year-old company up to $15.5M.
SoonR synchs your files to cloud storage via a downloadable client that runs in the background of both Macs and PCs. When you’re on the go, you can access these files with the web browser in your mobile phone. While the user interface served up will be tailored to the capabilities of your phone, the functionality will always be the same; you can view, print, share, and fax files. You can also a browse backup copies of your emails and talk on Skype.
In September 2006, we wrote about how SoonR had partnered with WebEx (since bought by Cisco for $3.2 billion) so that WebEx conferences could be accessed via SoonR on the mobile. This recent round of funding should help forge even greater connections between SoonR and Cisco’s technologies.
If you’re an American, you would be forgiven for not having heard of SoonR since the company has primarily sought user adoption in Europe. It has partnered with many European carriers such as TeliaSonera of Denmark. CEO Patrick McVeigh says that European carriers are more willing to adopt features like SoonR because there is more competition among them, and issues like coverage – a major topic of advertising here in the states – have already been solved. He expects the United States to reach the point of where Europe is currently at in this respect by around 2009.
You can sign up for a free version of SoonR through its website, but you’ll have to pay a premium through a carrier if you want more than 100mb of storage. McVeigh says that despite SoonR’s focus on the mobile access of files, 60 to 80% of usage is still through the PC browser, suggesting that it serves as a decent all-purpose backup solution as well.
News is just breaking that Cisco has agreed to aquire WebEx for $3.2 billion in cash. In 2006, WebEx generated nearly $50 million in profit on $380 million in revenue. They have $300 million or so in cash on hand, so the net deal value is $2.9 billion.
Webex is still ubiquitous (I am asked to view a WebEx presentation almost daily), but it’s expensive and bulky. And if you aren’t on a newish Windows PC, there’s a good chance it isn’t going to work properly. WebEx is exactly the kind of a company that is being disrupted by new web startups, who are creating cheaper and better alternatives to older web applications.
A bunch of startups have launched over the last year to provide cheaper and more flexible alternatives, including open source “clones” of WebEx functionality. Teamslide, DimDim (open source), 1videoconference (open source), Vyew, Live Meeting and SlideShare are all competitive with WebEx in one way or another, and all are better at cross platform collaboration.
