Video, one of Cisco's five company priorities, is the biggest growth driver for IP traffic.
Networking and communications giant Cisco Systems is
buying privately held BNI Video. Headquartered in Boxborough,
Mass., BNI Video supplies service providers with two video products
that offer video back-office and content delivery network (CDN)
analytic capabilities. The acquisition is designed to boost the
capabilities of Cisco's Videoscape communications platform, which
allows service providers to deliver video experiences to a device over
an Internet Protocol network.
Cisco announced Videoscape
in January at the Consumer Electronics Show.
Upon the close of the acquisition, BNI Video employees will be
integrated into Cisco's service provider video technology group. Under
the terms of the agreement, Cisco will pay about $99 million in cash
and retention-based incentives in exchange for all shares of BNI Video.
Cisco noted the acquisition is subject to various standard closing
conditions and is expected to be complete in the second quarter of the
company's fiscal year 2012.
BNI Video's technology could also help Cisco's service provider
customers reduce their operational costs and complexity, while
expanding monetization opportunities, according to two service
providers, Comcast and Time Warner Cable--who along with were early
investors in BNI Video. The two companies commented on the acquisition
in separate statements.
"Time Warner Cable invested early in BNI Video, as it brought a
unique software platform to market that addresses the back-office
complexities of delivering TV Everywhere services," said Mike LaJoie,
CTO at Time Warner Cable. "Combining forces with Cisco presents an
opportunity to take video service providers to the next level with
Internet video, helping to manage networks more efficiently to deliver
advanced TV entertainment experiences to consumers."
Comcast CTO Tony Werner said that with the combined expertise in IP
video systems, Cisco and BNI Video offer service providers a compelling
software and infrastructure platform to efficiently deliver video
content to multiple devices. "As a founding investor in BNI Video,
Comcast Ventures recognized the potential for this technology to play a
critical role in advancing video experiences for Comcast's customers,"
Video, one of Cisco's five company priorities, is the biggest growth
driver for IP traffic and, as a result, the company's core networking
business, according to the company. BNI Video is one in a line of
strategic acquisitions to accelerate Cisco's growth and differentiation
in video. Over the last year and a half, Cisco has acquired ExtendMedia
and Inlet Technologies, which added video content management and
adaptive bit rate capabilities to the company's portfolio.
"Cisco is committed to working with our service provider customers
to deliver next-generation IP-based video experiences across devices,"
Marthin De Beer, senior vice president and general manager of Cisco's
emerging business group, said in a statement. "Service providers
globally are embracing our Videoscape vision, and today with the
acquisition of BNI Video, we are augmenting our Videoscape platform and
giving customers a clear migration path to Videoscape."
Earlier this week Cisco rolled out new network switches
including a new firewall product, to expand its data center portfolio
with virtual security offerings. The company also unveiled the ASA
1000V, a virtual version of the current Adaptive Security Appliance.
Deployed as a virtual machine on a server, the appliance would extend
security protection to the edge of virtual environments, Cisco said.
Intended for multi-tenant cloud environments, Cisco said organizations
would be able to apply consistent policies across physical and virtual