Buyer, I Hardly Know Her

When this bit of news crossed my transom — Cisco buying WebEx — my jaw dropped... and I wasn't sure why.

In recent weeks, Cisco has acquired NeoPath, Five Across — and therefore, Tribe.net, an also-ran social networking service with untold promise — and Reactivity. Each deal is important, sure, but the aggregate, the whole is even moreseo.

My jaw had dropped, so I was at a bit of a loss. To make sense, I messaged my Twitter network — a Dodgeball-like groupmind accessible via Web, IM, and SMS — the following missive:

Why do I think this is important?

Within 15 minutes, I got the following reply:

Cisco is really making some smart picks. Cisco has the network and devices and picking up content and context tools

Of coursel

Cisco, a company previously based on pipes, in a loose sense, is now concentrating on what flows through those pipes. It's a Microsoft play. It's a Google play. It's also more elegant than that.

How so? Let me give my initial thoughts:

It's brands buying brands. Cisco, WebEx, and Tribe are relatively well-known names within their spaces. The brands are mature, the companies well-established. This is big buying relatively big.

It's host buying audience. This isn't a company buying an unrelated company. It's a known and trusted company buying a known and trusted company. Despite its flaws, WebEx has an established base that Cisco can most likely increase and improve. Scale plus — or times — scale will lead to some wonderful things. Likewise, Tribe, as an almost Friendster, can only grow because of the partnership.

It's rapidly done. This is the bump, set, spike, and then some that we hope for as growth seekers. We don't know what will develop, but the potential additive — quickly multiplicative — nature of these deals could bear better fruit.

Am I right? Wrong? Discuss.

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3 Comments

  • flash video

    I personally think you are absolutely right.
    Every big company is trying to go through with these "schemes".

    I like to compare this to oil companies, they own every part of their process, engaging profits on each steps, but for themselves. They own the drilling co's, the refinery co's, the distributors and lastly the gas stops.

    In the end it will surely provide Cisco with a rapid growth and further expand it's grasp on their business.

  • Dean Collins

    Lol - yep while Cisco may still be buying a trusted 'brand' in Webex it still doesn't make any sense the way it's been explained.

    Sounds like the old dot com buybble strategy of "Synergies"

    I'm hoping there is a grand master plan driving it as there always seems to be smart people at Cisco ...however... I have a new theory - The acquisition strategy is being driven by the Treasury Department in Cisco who have so much cash in the bank just sitting there they decided the ROI on the acquisition was higher than the T bills they are currently invested in (and less work to manage as you said it's already a stable and trusted brand).

    BTW I have another theory as well but for that you'll need to go to my blog and search on 'orative'.

    Cheers,
    Dean Collins
    www.collins.net.pr/blog

  • Raymond

    You know what i have made gain of a cheese burger fries and a shake for all the in put that was going get me a grand prize thanks burger king