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Cisco Moving On Set-Top Boxes

Posted by Zonk on from the new-horizons dept.

nevermindme writes "Cisco has agreed to plunk down a whopping $6.9bn for Scientific-Atlanta, hoping to take a major share of the set-top-box market and push video efforts. The networking giant will pay $43 per share in cash for Scientific-Atlanta ($5.3bn) and swallow $1.6bn in debt. With the buy, Cisco acquires one of the more dominant set-top-box makers. In addition, it pushes well beyond the data center to touch consumers where they live."

7 of 110 comments (clear)

  1. Oh by Spazntwich · · Score: 2, Interesting

    What does Cisco bring to the table that nobody else does or can?

    Maybe I'm a short-sighted idiot, but I thought Cisco did networking products. I guess if I saw them getting involved in the set-top box market, it would be in designing hardware to setup a background infrastructure for other set-top box makers.

    1. Re:Oh by OrangeTide · · Score: 2, Interesting

      Cisco does all sorts of things. They are constantly aquiring companies. You know those Polycom office conference phones? Those are Cisco now too. Cisco does just do IOS (thier propritary network management OS), they do Linux and other operating systems too. They have hundreds of Java developers as well. About the only thing Cisco hasn't gotten into yet is storage appliances, but I can only imagine that would be the next thing.

      What does Cisco bring to the table that nobody else does or can?

      Nothing. But the real question is, what does Scientific-Atlanta (soon to be a Cisco owned property) bring to the set top industry. What happens is these companies get aquired and are spun into a BU (business unit), and Cisco manages them and provides resources to the developers.

      --
      “Common sense is not so common.” — Voltaire
  2. Set-Top box + DVR + Cable Modem + Router + Wifi? by TimeForGuinness · · Score: 4, Interesting

    So will I be able to buy a Set-top box with a DVR, cable modem, Wifi and Router capabilities?

    Nice.

  3. sensible by peterjhill2002 · · Score: 5, Interesting

    This story is almost 24 hours old... Cisco most certainly wants to integrate itself into every part of digital data transmission. Since there are alot of people watching "digital tv" it is a sensible purchase.

    Look at what else Cisco has done. They have a voip phone that integrates with Skype
    http://www1.linksys.com/international/product.asp? coid=52&ipid=821

    If you get vonage, you often get a Cisco ATA box to turn your analog phone into a digital signal...

    It is a great strategy for Cisco. They want to sell both parts of the package, the core routers for the Internet. DSL and cable modem concentrators for the central office. DSL and cable modems.

    I wonder if they will keep the company name or roll them into Linksys as a consumer product. I also wonder how microsoft will react. They want to get a version of their OS on cable boxes.

    Time will tell

  4. Re:Set-Top box + DVR + Cable Modem + Router + Wifi by Microlith · · Score: 2, Interesting

    That would suck.

    It'd give cable companies the perfect means of making sure they bill you for every PC you put on your network.

    I'd like to keep my network seperate from theirs as much as possible, thank you very much.

  5. Linking the dots... by droopycom · · Score: 3, Interesting

    - Cisco buys SA (Scientific Atlanta)
    - Cisco recently bought danish company Kiss Technology - now part of the linksys division (Some of you might remember them as the first company coming out with a Mpeg4/Divx set top DVD player)
    (http://newsroom.cisco.com/dlls/2005/corp_072205.h tml)
    - Kiss has a long standing relationship with chip maker Sigma Designs, Inc.
    (http://www.google.com/search?q=Kiss+Sigma+Designs )
    - Sigma and Microsoft are working together to enable Windows Media CE product, including Kiss products
    (http://www.microsoft.com/presspass/press/2004/nov 04/11-30sigmadesignspr.mspx)
    - Sigma is working with Microsoft on their MSTV IPTV platform.
    (http://www.microsoft.com/presspass/press/2005/sep 05/09-08SigmaIBCPR.mspx)
    - SBC plans to release IPTV service using the MSTV platform.
    (http://www.microsoft.com/tv/content/PressReleases /SBC04_IPTV.mspx)
    SBC will use Motorola and SA set top boxes for this (service.http://www.sbc.com/gen/press-room?pid=480 0&cdvn=news&newsarticleid=21772)

    Obviously Cisco wants to be a player in the IPTV space.

    This article is interresting also, cisco was not named, so they must have realized that their were getting out of the loop. Not anymore with the SA acquisition: http://www.forbes.com/facesinthenews/2005/09/09/tv -broadcasting-microsoft-cx_dl_0909autofacescan06.h tml?partner=yahootix

  6. Makes sense to me by peterdaly · · Score: 4, Interesting

    Contrary to what seems like the opinion here seems to be, I think this makes perfect sense. Set-top boxes are really only a portion of the SA business. The rest is in cable networking components.

    From network components to cable set-top does seem like a little bit of a jump, where buying up a company that makes cable networking equipment in general is right up Cisco's alley.

    I used to work for the division of Philips that made commercial cable equipment (no longer in business.) A modern cable system is really a modern day addressable network.

    My thinking is "wall-street" folks come in contact with the set-top boxes, so that's what they percieve the SA business to be all about.

    -Pete

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