Cisco

Only available on StudyMode
  • Download(s): 6
  • Published: April 12, 2013
Read full document
Text Preview
Observations on Cisco’s acquisition spree covered in the case study and up December 2012

In my opinion Cisco’s acquisition spree didn’t show any signs of stopping, Cisco being a Networking and infrastructure giant. This spree was started back in 1993 with the takeover of crescendo communications for around the mark of 95 million. And later on in 1994 it also took new port systems solutions for 93 million in stock. The two different acquisitions helped to expand the product portfolio to areas like local area networking switching, VoIP, home networks, and so on. Many of the different companies went on to become great and prosper like Linksys and also WebEx went on to garner revenues of a good bit over the 1 billion mark in us dollars. The reason this was possible was mainly because all the companies were run individually as separate entities by their existing management even after they had been acquired. The deal for cognitive is only latest in the speedily increasing of number of acquisitions of mostly off-shore companies that Cisco is using to gather up not just network capabilities but in the form of could, video and virtualisation. It seems to me that Cisco is increasingly added to its expanding portfolio, it sheds companies that don’t belong into its long range strategy. Most recently Cisco announced that it was selling Linksys over to balking this being a move to exit what they call the consumer technology space. In the years pervious Cisco shuttered its ump home telepresence businesses and also its flip video camera. I believe Cisco to be very intelligent in the ways that they carry out their business; Chambers said that the future of the web was in video and tolls that helped provide collaboration, which helped in spreading media through social networking a lot further. He wanted Cisco to have major uphold in this area, and this is the reason why they entered into video technology and home entertainment field. Back in 2009 they acquired a video conferencing equipment maker for 3.4 billion us dollars. Moving on to another one of these acquisitions Pure Digital was next for a massive 590 million us $. They were a company involved in manufacturing video cameras that flipped. Which could be used in ways to film video clips and upload them to computer? The devices became highly popular. This acquisition of Flip video cameras added to Cisco's skills as the cameras might be utilized to record brief video memos that might be uploaded and distributed across the world. To complement this, Cisco did additionally projected to unveil an automated video translation in multimedia with twenty languages, in the subsequent half of 2010.Cisco had additionally benefited from the fact that countless firms were cutting down on excursion strategies and opting for teleconferences. Not merely firms but countless powers too acquired Telepresence arrangements from Cisco.

Observations on Cisco’s financial statements

Looking at net service revenue it increased with Cisco’s geographic theatres in 2010 with the most strength in Asia and the European markets too. The reason for this total service increase was due to growth with the technical support services and also including increased revenue from advanced services. All these factors relate to consulting services for specific network needs .In 2010 Cisco experienced what was advance services revenue growth all over their geographical theatres accepts for their emerging ones. There total service revenue growth in 2010 also highly benefited from incremental revenue from there acquisitions during fiscal 2010. The renewals and technical support service resulted in brand new installed base of all the equipment being serviced which helped and contributed to these increases. With the recession taking its toll on the economy, Cisco’s somehow managed to still acquire a few different companies, Cisco entered sectors intelligently like the sports technology arena in ways that allowed stadiums to...
tracking img