Cisco, which was recently rumoured to be considering disposal of its Scientific Atlanta set-top box business, has confirmed its commitment to the operation as part of its strategy to benefit from the rising tide of video consumption.
Cisco has “a huge commitment to video,” John Chambers, Cisco’s CEO and chairman, told The Atlanta Journal-Constitution, noting that video-related traffic was growing exponentially and was expected to account for 91 per cent of Internet data flow within three years.
“This isn’t [about] set-top boxes. It’s how you bring video into the home, into wherever,” said Chambers. “This is right now our sweet spot for where we want to go.”
Earlier this month, Cisco announced a $5 billion deal to buy video software specialist NDS. Cisco hopes the deal will broaden and speed up its efforts to launch new video-related products.
“NDS is very advanced in some components. We are very advanced in other components,” said Chuck Robbins, Cisco’s senior vice president for the Americas. “It may be the most complementary acquisition we’ve ever done.”