& 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


 

Light Readingís Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
LIVE NOW!
Friday, December 2, 1:00PM EST
The SDN Approach to IP & Optical Integration
Sterling Perrin, Senior Analyst, Heavy Reading
UPCOMING COURSE SCHEDULE
Friday, December 2, 1:00PM EST
The SDN Approach to IP & Optical Integration
Sterling Perrin, Senior Analyst, Heavy Reading
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Women in Comms Introduction Videos
Korn Ferry Consultant: How to Find, Cultivate & Be the Best Talent

11|30|16   |   4:10   |   (1) comment


Erin Callaghan, a managing consultant for Korn Ferry Futurestep, shares strategies for companies to improve how they recruit and for women to ensure they don't get lost in the pipeline.
LRTV Custom TV
We Can Make the World More Sustainable

11|29|16   |     |   (0) comments


GeSI is a global e-Sustainability Initiative organization bringing together 40 big multinational companies around the world. According to GeSI's report, information and communication technology can make the world more sustainable. Luis Neves, chairman of GeSI, shared with us his opinion at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
Finding a New Way to Engage Customers & Drive Revenue

11|29|16   |     |   (0) comments


Mobile revenues are declining. Digicel, a player in the Caribbean telecommunications/entertainment space, has found a new way to engage customers and drive revenue. John Quinn, CTO of Digicel, shared with us its story at Ultra-broadband Forum (UBBF2016)
LRTV Custom TV
Do You Really Need Gigabit Infrastructure?

11|29|16   |     |   (0) comments


Altibox is the biggest fiber-to-the-home (FTTH) player and the largest provider of video and TV in Norway. They started out with zero customers in 2002. Now they have close to half a million households and companies attached to their FTTH business. Nils Arne, CEO of Altibox shared with us their story and insight on 5G at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
BTís Openreach Strategy & Its Updates in 2016

11|29|16   |     |   (0) comments


A lot of developments at Openreach this year in terms of strategy and planned investments. Peter Bell, CIO of Openreach BT, shared with us the updates of Openreach at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
ITU: The Broadband Is Our Future

11|29|16   |     |   (0) comments


At Ultra-broadband Forum, Houlin Zhao, Secretary General of ITU, discussed how important it is for countries, companies and everybody to be working together to help to build the broadband and digital economies (UBBF2016).
LRTV Custom TV
Tackling 5G in Dallas

11|28|16   |     |   (0) comments


Here are our highlights of the 5G North America show in Dallas, Texas with Light Reading's Dan Jones.
LRTV Interviews
Cox Prepping for Virtualization Trials

11|14|16   |     |   (0) comments


In this video interview, Cox's Jeff Finkelstein discusses MSO's plans to test managed business services in early 2017 and tackle Distributed Access Architectures.
LRTV Custom TV
Drivers & Potential of NGP

11|11|16   |     |   (0) comments


ETSI has created an Industry Specification Group to work on Next Generation Protocols (NGP ISG), looking at evolving communications and networking protocols to provide the scale, security, mobility and ease of deployment required for the connected society of the 21st century. The NGP ISG will identify the requirements for next generation protocols and network ...
LRTV Custom TV
Huawei IP 2020 for Future Networks

11|11|16   |     |   (0) comments


Future Networks should satisfy many requirements such as high throughput, extremely low latency, flexible mobility, intrinsic security, networking automation, and so forth. The Chief Architect of Huawei Future Networks addresses a holistic solution, i.e., IP 2020, to achieve these requirements for various future life scenarios (e.g., autonomous driving, tactile ...
LRTV Custom TV
Digital Object Architecture

11|11|16   |     |   (0) comments


Digital Object Architecture provides a basic information infrastructure that can facilitate interoperability between or among different systems, processes, and other information resources, including different identity management systems. Digital objects are networked objects that are named by digital object identifiers and instantiated by an infrastructure service ...
LRTV Custom TV
BT's Openreach Has High Hopes for Long-Reach VDSL

11|11|16   |   06:04   |   (0) comments


Peter Bell, Network Portfolio CIO at BT's access business Openreach, talks about the operator's trial of a new broadband access technology called Long Reach VDSL.
Upcoming Live Events
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
AT&T Debuts DirecTV Now on New Video Platform
Mari Silbey, Senior Editor, Cable/Video, 11/28/2016
Apple Seeds 5G? Seeks 'Multi-Gigabit' Chip Designer
Dan Jones, Mobile Editor, 11/30/2016
Altice Plans FTTH for Entire US Footprint
Iain Morris, News Editor, 11/30/2016
Altice FTTH Bill Could Hit Almost $9.6B in US
Iain Morris, News Editor, 12/1/2016
Samsung Bows to Investors, Considers Revamp
Iain Morris, News Editor, 11/29/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Live Digital Audio

Even when there's a strong pipeline of female talent in the comms industry, it tends to leak all the way to the top. McKinsey & Company says women experience pipeline leakage at three primary points: being unable to enter, being stuck in the middle or being locked out of the top. Each pipeline pain point presents its own challenges, but also opportunities to stop the leak. Wireless operator Sprint is making a conscious effort to improve its own pipeline from new recruits to the C-suite, and it wants the rest of the industry to do the same. In this Women in Comms radio show, WiC Board Member and Sprint Vice President of Enterprise Sales Nelly Pitocco will give us her take on the industry's pipeline challenges. Pitocco, who joined Sprint in May and has spent 20 years in the comms industry, will also offer solutions, share how Sprint is tackling the challenge within its own organization and take your questions live on air.