Cisco knows the future of the Internet. They should, they build a lot of its infrastructure with super fast networking appliances. So it should be no surprise that they know the future of the Internet is video and are making moves to be there in full force. In fact, this is a brilliant move for them I think.
Cisco is the maker of some of the fastest and biggest network switches, routers, wireless and secure network appliances on the planet. So they know the capabilities of the Internet as well as anyone might be able to. The fact that they're looking to acquire a content management platform could be an ideal situation because, they know how to get data from point A to point B. Couple that with a management system for large files, in our case video, and you've got a highly optimized content delivery solution.
ExtendMedia provides OpenCASE, a carrier-grade platform for managing, publishing and monetizing video across PCs, televisions and mobile devices. With OpenCASE, network operators, media companies and consumer electronics companies can launch streaming and downloadable video services in an ad-supported, paid , rental or subscription model. Our customers can also leverage the quick time-to-market of a fully hosted offering or the flexibility of an easily customizable enterprise platform.
Obviously, ExtendMedia is agreeable to this acquisition as they've even posted news about it on their own website. The company recently expanded its offering to cover emerging markets like Android, iPhone and other mobile platforms as well as Sony PS3, Oregan Onyx-based set-top boxes and connected TVs, and the Yahoo! TV Widgets framework.
This could definitely put Cisco squarely in the CDN arena and a major contender. I imagine that since they make the hardware the drives the Internet they can also optimize data flowing through that hardware better than anyone else can. Than means better viewing experiences and faster data streams. It could also then transfer into better engagement, less viewer drop off and a range of things that make publishers and advertisers happy since the viewers will get the video faster.
If you remember, Cisco has already made several moves into the online video arena with the purchase of Tandberg who make videoconferencing systems and Pure Digital who make the Flip camera. At the rate they are going they could suddenly be an end-to-end solution for online video providers.
Look at the pieces they've assembled. They have a video camera maker, meaning you could have Cisco hardware in your hand that is recording your video. They have a videoconferencing technology which means that same camera could stream the video live, to somewhere. Where do you stream it to? Why, their new three screen video management solution, that's where. From there it gets transmitted around the world at blazing speeds thanks to Cisco having built the hardware the data passes through. That is, as far as I'm concerned, a real end-to-end solution, from video creation straight through to video viewing. Sure, there are some pieces yet missing like editing, advertising, etc... but give them time, I'm sure they'll move into those areas as well.
ExtendMedia's CMS software, which will integrate with Cisco's current IP video offerings, will be a core component of Cisco's next-generation video architecture.
Cisco is on a buying spree having already got CoreOptics and product design consulting firm Moto Development Group earlier this year. That could also signal new video-based products on the horizon as well...an optics firm and a design firm...
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