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Friday, July 22
by
Mark Evans
on Fri 22 Jul 2005 11:23 AM EDT
Cisco's $61-million acquisition of KiSS Technologies is attention-grabbing and worthy of some analysis. KiSS makes networked DVD players and recorders and other home video products. Its technology can access content on the Internet or from other devices within a home network. The acquisition will let Cisco grow its presence in the home-networking market by leveraging on the Linkysy portfolio. CIBC analyst Steve Kamman thinks Cisco will probably get into the video DVR and set-top box market, which could pit it against players such as Scientific-Atlantic. Kamman thinks Cisco will pursue the IP-TV set-top box market. He does not believe, however, Cisco will aggressive pursue KiSS's cool-sounding "Surround Sofa" project, which involves speakers built into a sofa. "We do expect Cisco to grow by moving into adjacent markets, but don't see "Upholstered Furniture" as a likely new Adv. Tech. area in the near future," he wrote - clearly with tongue firmly in cheek. From a number of perspectives, you have to applaud Cisco's approach to acquisitions. It's aggressive, forward-thinking, pro-active and not without some risk. At the same time, this approach has become increasingly necessary as competition intensifies and there is more pressure to stay ahead of the pack.
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