Cisco to Buy SIP Trailblazer Dynamicsoft

Cisco Systems Inc. announced Monday that it will buy SIP infrastructure provider Dynamicsoft Inc., which has been instrumental in developing the SIP (session initiation protocol) VOIP signaling protocol and its attendant network servers. The deal represents Ciscos second VOIP acquisition in as many months.

The company bought P-Cube Inc., based in Sunnyvale, Calif., in late August for its IP network-usage monitoring and rating technology.

Parsippany, N.J.-based Dynamicsoft has focused recently on the "presence" aspect of SIP: the ability of its SIP servers to track user availability across disparate media including wireless and wireline voice, chat and video. Cisco said its purchase will strengthen its offering to service providers looking to build "subscriber-aware" VOIP (voice over IP) applications and services.

Click here to read about how push-to-talk technology is affecting the development of SIP applications.

"Clearly, this is a carrier-focused acquisition," said Robert Rosenberg, principal analyst with Boonton, N.J.-based Insight Research Corp.

"Cisco wants to give carriers the sophisticated toolbox they can use to develop pervasive services that can be used across both wireless and wireline, PSTN [Public Switched Telephone Network] and IP. Verizon is a good example of that kind of customer. They need these services because, as we all know, you cant make money off voice."

Cisco will pay about $55 million in cash for the company, including the assumption of $3.8 million in outstanding debt. Don Proctor, vice president and general manager of Ciscos voice technology group, will top its reporting hierarchy.

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