& cplSiteName &

Cisco to Buy BNI Video for $99M

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
10/20/2011
50%
50%

Cisco Systems Inc. (Nasdaq: CSCO) is poised to challenge SeaChange International Inc. (Nasdaq: SEAC) and Ericsson AB (Nasdaq: ERIC) in the video backoffice market after striking a US$99 million deal to acquire BNI Video , a startup that counts Comcast Corp. (Nasdaq: CMCSA, CMCSK) and Time Warner Cable Inc. (NYSE: TWC) among its financial backers.

Cisco said it intends to integrate BNI's backoffice and content delivery network (CDN) analytic capabilities into Videoscape, an IP-focused TV Everywhere platform that Cisco is developing for cable MSOs and other service providers. BNI's employees would join the Service Provider Video Technology Group. The deal is expected to close before February.

Founded in 2009, BNI Video has not announced any customers, but Comcast Interactive Capital and TW Cable helped lead a $16 million B round in the startup last year. Cisco participated in BNI Video's $6.8 million A round. BNI Video CEO Conrad Clemson, a former Broadbus Technologies exec, told Light Reading Cable in the fall of 2010 that the company expected to pull in "meaningful revenue" in 2011.

BNI Video's claim to fame is a video control plane that can manage cable's use of CDNs and to help them deliver video to connected consumer electronic devices including Blu-ray players, smartphones, tablets and gaming consoles. BNI Video's Evolution Video Control Plane, by the way, is a 2011 Leading Lights finalist in the Best New Product (Cable) category.

Why this matters
A next-gen video backoffice for multi-screen delivery has been missing from Videoscape. Although Cisco insists that Videoscape will play nice with others, the addition of BNI Video would let Cisco take more control of the ecosystem it's pitching to MSOs. (See CES 2011: Cisco Wants Videoscape to Play Nice.)

SeaChange and Ericsson are the incumbents here, having developed new backoffice systems with TV Everywhere components. Competition would heat up considerably if they had to deal with Cisco rather than little ol' BNI Video. (See SeaChange Gives Liberty Shot of Adrenalin and SeaChange Gives VoD a Shot of 'Adrenalin' .)

For more
Read more about BNI Video and Videoscape.



— Jeff Baumgartner, Site Editor, Light Reading Cable

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 4:50:54 PM
re: Cisco to Buy BNI Video for $99M


Comcast and TWC are BNI investors, so it wouldn't be a huge reach that they will deploy or have already started to deploy BNI's backoffice. But it's interesting in that Comcast has historically been linked to SeaChange's backoffice  as TWC has been to Ericsson's (going way to the product's days under the N2 Broadband and Tandberg Television umbrellas).  If you want to read between the lines, here are the statements from Comcast and TWC in today's Cisco announcement:


"As a founding investor in BNI Video, Comcast Ventures recognized the potential for this technology to play a critical role in advancing video experiences for Comcast's customers," said Tony Werner, chief technology officer, Comcast.  "With the combined expertise in IP video systems, Cisco and BNI Video offer service providers a compelling software and infrastructure platform to efficiently deliver video content to multiple devices."


"Time Warner Cable invested early in BNI Video, as it brought a unique software platform to market that addresses the back-office complexities of delivering TV Everywhere services," said Mike LaJoie, chief technology officer, Time Warner Cable. "Combining forces with Cisco presents an opportunity to take video service providers to the next level with Internet video, helping to manage networks more efficiently to deliver advanced TV entertainment experiences to consumers."


 

Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 4:50:51 PM
re: Cisco to Buy BNI Video for $99M


... if Cisco looked at SeaChange too before it pulled the trigger on BNI Video. Rumors that SeaChange is ripe for an acquisition have been going on for a long time now and the latest rumor we hear is that an equity fund, and perhaps several, have been taking a look (Arris may be out of it since it picked up BigBand).


Anyway, Kip Compton didn't mention any other companies by name, but did tell me Cisco had been looking into this video backoffice market for quite a while but was reluctant to make any investments unless the target had an attractive IP video strategy. "With BNI, we believe their architecture does," he said.


For what it's worth, that does seem to suggest  that Cisco at least did do some poking around elsewhere before doing this deal. And MANY people are telling me SEAC is hot and heavy to get bought... though I did hear a suggestion recently that going private may also be on the table of options.  Just sayin'  JB


 

From The Founder
Light Reading sits down at CES with the head of Cisco's service provider video business, Conrad Clemson, to discuss how NFV and cloud security relate to video, the challenge of managing 4K/8K traffic, the global expansion of Netflix and virtual reality.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
LRTV Documentaries
All Change in Video

2|11|16   |   33:12   |   (1) comment


At this moderated panel at 2020 Vision in Dublin, Alan Breznick, Cable/Video Practice Leader of Light Reading, sits down with Jeff Finkelstein, director of network architecture at Cox Communications, to discuss the rapidly changing video market.
LRTV Custom TV
Hosting in Ireland, Past & Present

2|10|16   |   16:07   |   (0) comments


Garry Connolly, president of Host in Ireland, presents the keynote at Light Reading's 2020 Vision Executive Summit in Dublin.
Women in Comms Introduction Videos
What's Hot in Mobile Commerce?

2|10|16   |   12:18   |   (1) comment


Claire Maslen, financial services relationship manager at the GSMA, talks about the development of the digital commerce sector and the types of relationships that mobile operators are developing to further their m-commerce strategies.
LRTV Documentaries
EANTC Tests Nokia IP Routing & Mobile Gateway VNFs for Real World Deployment

2|9|16   |   5:08   |   (1) comment


Nokia obtained validation of its virtualized router and virtualized mobile gateway capabilities through rigorous testing performed by EANTC. The results set a new industry benchmark for outstanding performance, scalability, resiliency and manageability. Nokia VNFs are ready for telco cloud deployment, so that service providers can accelerate mobile, business and ...
Between the CEOs
CEO Chat With Level 3's Jack Waters

2|8|16   |   26:15   |   (1) comment


Light Reading CEO and founder Steve Saunders sits down with Level 3 Communications' CTO Jack Waters to discuss hot topics like virtualization, 4K and the future of telecom...
LRTV Custom TV
The Composable Telco

2|8|16   |   24:46   |   (0) comments


Heavy Reading's Principal Analyst Caroline Chappell presents the keynote at Light Reading's 2020 Vision Executive Summit in Dublin.
LRTV Custom TV
Join Us at the Digital Operations Transformation Summit

2|4|16   |   03:52   |   (0) comments


The Digital Operations Transformation Summit on February 21, 2016 at the Crowne Plaza Barcelona Fira Centre will bring together 50 senior executives to engage in a unique debate on the opportunities and challenges presented by the transformative evolving digital landscape. RSVP now at events@lightreading.com.
LRTV Custom TV
Making the Test: ADVA Ensemble Connector vs. Open vSwitch

2|4|16   |   01:28   |   (0) comments


Light Reading, in partnership with EANTC, recently tested ADVA's Ensemble Connector, which replaces open vSwitch and offers carrier-grade capability and interoperability. The test results strengthen ADVA's credibility as a provider in the virtualization space.
LRTV Custom TV
Bridging the Gap Between PoCs & Deployment in NFV

2|4|16   |   31:50   |   (0) comments


Charlie Ashton of Wind River presents the keynote at Light Reading's 2020 Vision executive summit in Dublin.
Between the CEOs
CEO Chat With Mike Aquino

2|3|16   |   17:34   |   (0) comments


The former CEO of Overture Networks, Mike Aquino, discusses why truly open virtualization solutions provide service providers with the greatest choice.
Shades of Ray
MWC: Buckle Up for 5G & the IIoT

2|2|16   |   02:28   |   (0) comments


This year's Mobile World Congress looks set to be a 5G land grab and a chance to get down and dirty with the Industrial Internet of Things (IIoT) – but what will the 5G discussions actually be about?
LRTV Custom TV
Case Study: Building China's Next-Gen TV Networks

2|2|16   |   5:01   |   (0) comments


With over 2 billion viewers worldwide, Shenzhen Media Group is one of China's largest content producers. By partnering with Huawei and Sobey, SZMG was able to modernize media operations with the Converged News Center, a production studio that is a model for next-generation workflows.
Upcoming Live Events
March 10, 2016, The Cable Center, Denver, CO
April 5, 2016, The Ritz Carlton, Charlotte, NC
May 23, 2016, Austin, TX
May 24-25, 2016, Austin Convention Center, Austin, TX
All Upcoming Live Events
Hot Topics
AT&T Lights Fire Under 5G, Plans 2016 Trials
Iain Morris, News Editor, 2/12/2016
Yahoo & Verizon Sitting in a Tree...
Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 2/8/2016
Vodafone: Flexible Work Policies Boost Profits
Sarah Thomas, Editorial Operations Director, 2/8/2016
It's Time to Integrate OTT Video
Alan Breznick, Cable/Video Practice Leader, 2/8/2016
Andreessen Facepalms on Facebook Free Basics
Mitch Wagner, West Coast Bureau Chief, Light Reading, 2/10/2016
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO and founder Steve Saunders sits down with Level 3 Communications' CTO Jack Waters to discuss hot topics like virtualization, 4K and the future of telecom...
The former CEO of Overture Networks, Mike Aquino, discusses why truly open virtualization solutions provide service providers with the greatest choice.
Live Digital Audio

Broadband speeds are ramping up across Europe as the continent, at its own pace, follows North America towards a gigabit society. But there are many steps to take on the road to gigabit broadband availability and a number of technology options that can meet the various requirements of Europe’s high-speed fixed broadband network operators. During this radio show we will look at some of the catalysts for broadband network investments and examine the menu of technology options on offer, including vectoring and G.fast for copper plant evolution and the various deployment possibilities for FTTH/B.