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Cisco to Purchase WebEx Communications for $3.2 Billion
Thursday, March 15, 2007
Bloomberg is reporting that Cisco is set to purchase WebEx Communications for $3.2 Billion. Wow that is a lot of money to pay for a teleconferencing service. WebEx Communications Inc., the largest provider of Internet teleconferencing services. Cisco Systems Inc, the world's biggest maker of computer-networking equipment, is making the move in an attempt to counter Microsoft's expansion in the teleconfereincing market. Microsoft bought WebEx rival PlaceWare Inc. in 2003.

The Bloomberg report goes on to state that "Cisco will add WebEx's services to products for making phone calls, sending messages and holding meetings over the Internet, allowing for integrated communication."

The move gives Cisco increased access to a market that is growing faster than its traditional business of routers and the like. The addition adds to Cisco's inventory of the video-conferencing resources as last year they released TelePresenece, a Web-based system that transmits life-sized images to remote conference rooms. Cisco Chief Development Officer Charles Giancarlo has said that the TelePresence product may be he quickest Cisco product to reach $1 billion in annual sales. All appears to be well in the Cisco world. I wonder what Microsft's next move will be?

Related Resources:

Bloomberg on Cisco to Buy WebEx Communications for $3.2 Billion
Cisco Podcasts of Announcement
Cisco Website
WebEx Website

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posted by Jody @ 10:00 AM  
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