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).