Light Reading

Cisco Bets $5B More on Video With NDS

Craig Matsumoto
LR Cable News Analysis
Craig Matsumoto
3/15/2012
50%
50%

Cisco Systems Inc. (Nasdaq: CSCO) signed a deal to acquire video security company NDS Ltd. for roughly US$5 billion, the companies confirmed Thursday morning.

Based in Israel, NDS makes security and conditional-access software for video networks. To Cisco, that means a fresh approach to features such as video search and navigation.

NDS also offers a downloadable version of its encryption system, something that could help Cisco's set-top business (which the company still denies it's trying to sell).

Cisco expects to close the deal in the second half of 2012.

Why this matters
Cisco continues to bet its future on video. NDS gives the company a way to deepen relationships with the service providers that want to spread video to various consumer and mobile devices, according to a Thursday morning blog posting by Senior Vice President Marthin De Beer.

NDS also has some sizable customers in China and India, so the deal brings Cisco more deeply into those markets.

On a political note, Cisco has been not-so-subtly threatening that its acquisitions will favor overseas deals. It's a way of indirectly pressuring the U.S. government to offer a tax break on repatriation of international profits. You can bet Cisco is going to emphasize the fact that its largest acquisition in years happened overseas.

For more
More info on Cisco's video aspirations:



— Craig Matsumoto, Managing Editor, Light Reading

(6)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
craigleddy
50%
50%
craigleddy,
User Rank: Blogger
12/5/2012 | 5:39:20 PM
re: Cisco Bets $5B More on Video With NDS


Two immediate reactions: 1. Holy s--t! I don't think anyone saw this coming. Anyone know the back story of how this came about? 


2. NDS was a leading opponent of the cable duopoly (Cisco and Moto), seeking to break it with its own conditional access and other solutions. However, NDS developers like working with the Cisco cable platform (formerly Scientific Atlanta) because it is more flexible for interactive apps and UIs than Moto's platform. What becomes of the cable duopoly now? Did the fox just buy the henhouse?             

Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 5:39:19 PM
re: Cisco Bets $5B More on Video With NDS


Oh, man. This definitely changes the game.  Lots of implications on the security side and well beyond them, as Mr. Tombes points out.  I'm getting my head around some of the bigger ones and will offer a list soon on my blog that you can poke holes at or expand on. JB

AESerm
50%
50%
AESerm,
User Rank: Light Beer
12/5/2012 | 5:39:19 PM
re: Cisco Bets $5B More on Video With NDS


CA is a huge part of NDS, but there's more. At IBC, they offered up the 'blow you away' demo with Surfaces, a wall-sized exploitation of video display technology. (My colleague John Moulding was gaga in this write-up. Best demo in 13 years of IBC, etc.) But it could end up being a market-mover, like TelePresence, only multi-dimensional (3D, 4k, multi-screen, etc.). Must confess, though, my first unfair thought today was that the co-owners of NDS (News Corp) needed cash for mounting legal bills.

Flook
50%
50%
Flook,
User Rank: Light Beer
12/5/2012 | 5:39:18 PM
re: Cisco Bets $5B More on Video With NDS


Would this be the second most expensive acquisition Cisco has ever made? I seem to recall that Scientific Atlanta was around $7 Billion.

Pete Baldwin
50%
50%
Pete Baldwin,
User Rank: Light Beer
12/5/2012 | 5:39:17 PM
re: Cisco Bets $5B More on Video With NDS


Cerent was about $7B, IIRC.  The price was based on bubble-era Cisco stock, but that's the amount it took to keep Cerent from trying to go public.

Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 5:39:17 PM
re: Cisco Bets $5B More on Video With NDS


I believe you are right... No. 2, behind S-A, which Cisco bought for $6.9B in 2005, so you were right on the price. JB

Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
Last week I dropped in on "Hotlanta," Georgia to moderate Light Reading's inaugural DroneComm conference – a unique colloquium investigating the potential for drone communications to disrupt the world's telecom ecosystem. As you will see, it was a day of exploration and epiphany...
LRTV Documentaries
Verizon's Emmons: SDN Key to Cost-Effective Scaling

5|22|15   |   03:53   |   (0) comments


For Verizon and other network operators to ramp up available bandwidth cost effectively, they need to move to SDN and agree on how to do that.
LRTV Documentaries
Lack of Universal SDN a Challenge

5|21|15   |   04:51   |   (3) comments


Heavy Reading Analyst Sterling Perrin talks about how uncertainty about SDN standards and approaches may be slowing deployment.
LRTV Custom TV
Steve Vogelsang Interview: Carrier SDN

5|20|15   |   05:02   |   (0) comments


Sterling Perrin speaks to Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, about the new Carrier SDN-enabling Network Services Platform and the operator challenges it solves.
LRTV Custom TV
Carrier SDN: On-Demand Networks for an On-Demand World

5|20|15   |   20:52   |   (0) comments


Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, talks about requirements and benefits of Carrier SDN during the keynote address at the Light Reading Carrier SDN event May 2015.
LRTV Documentaries
The Security Challenge of SDN

5|19|15   |   02:52   |   (0) comments


CenturyLink VP James Feger discusses concerns that virtualization could create new vulnerabilities unless network operators build in safeguards.
LRTV Custom TV
NFV Elasticity – Highly Available VNF Scale-Out Architectures for the Mobile Edge

5|18|15   |   5:50   |   (0) comments


Peter Marek and Paul Stevens from Advantech Networks and Communications Group talk about their NFV Elasticity initiative and the company's latest platforms for deploying virtual network functions at the edge of the network. Packetarium XL and the new Versatile Server Module: 'designed to reach parts of the network that other servers cannot reach.'
LRTV Huawei Video Resource Center
Bay Area Spark Meetup 2015

5|14|15   |   3:54   |   (0) comments


Developed in 2009, Apache Spark is a powerful open source processing engine built around speed, ease of use and sophisticated analytics. This spring, Huawei hosted a meetup for Spark developers and data scientists in Santa Clara, California. Light Reading spoke with organizers and attendees about Huawei's code contributions and long-term commitment to Spark.
LRTV Custom TV
The Transport SDN Buzz

5|12|15   |   06:01   |   (1) comment


Sterling Perrin, senior analyst at Heavy Reading, speaks with Peter Ashwood-Smith of Huawei and Guru Parulkar of ON.Lab about the evolution of transport SDN and the integration of technologies.
LRTV Custom TV
Next-Generation CCAP: Cisco cBR-8 Evolved CCAP

5|5|15   |   04:49   |   (0) comments


John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explained the innovation design of Cisco's cBR-8, the industry's first Evolved CCAP, including DOCSIS 3.1 design from ground-up, distributed CCAP with Remote PHY and path to virtualization. Cisco's cBR-8 Evolved CCAP is the platform that will last through the transitions.
LRTV Custom TV
Meeting the Demands of Bandwidth & Service Group Growth

5|1|15   |   5:35   |   (0) comments


Jorge Salinger, Comcast's Vice President of Access Architecture, explains how DOCSIS 3.1 and multi-service CCAP can meet the demands of the bandwidth and service group growth.
LRTV Custom TV
DOCSIS 3.1: Transforming Cable From Hardware-Defined Network to Software-Defined Network

4|29|15   |   03:48   |   (0) comments


John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explains how DOCSIS 3.1 can transform cable HFC network to a more agile software-defined network.
LRTV Huawei Video Resource Center
Predicting Traffic Patterns for Quality Mobile Broadband

4|29|15   |   6:45   |   (0) comments


Accessing information ubiquitously creates complexity and creates heavy traffic onto the network, especially at large-scale events like sporting events or festivals. In this video, Huawei's Mohammad Hussain speaks to experts about how to predict traffic and improve user experience during periods of heavy traffic.
Upcoming Live Events
June 8, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 6, 2015, The Westin Peachtree Plaza, Atlanta, GA
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
All Upcoming Live Events
Infographics
Network functions virtualization (NFV) is not the easiest of topics to take on board, so here's a Light Reading infographic, developed following conversations with the folks at HP, that helps make sense of where NFV is taking the industry.
Hot Topics
Verizon Saves 60% Swapping Copper for Fiber
Sarah Thomas, Editorial Operations Director, 5/19/2015
Choosing a Technology Supplier? Consider Changing Your Selection Criteria
Steve Saunders, CEO and founder, Light Reading, 5/18/2015
10 Alternate Uses for Tablets
Eryn Leavens, Copy Desk Editor, 5/22/2015
Chattanooga Charts Killer Gigabit Apps
Mari Silbey, Senior Editor, Cable/Video, 5/20/2015
Bidding War for TWC Looks Likelier
Alan Breznick, Cable/Video Practice Leader, 5/22/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
With 200 customers in 60 countries, Stockholm-based Net Insight has carved out a solid leadership position in one of the hottest vertical markets going in comms right now: helping service providers and broadcasters deliver video and other multimedia traffic over IP networks. How has Net Insight managed to achieve this success in the face of immense competition from the industry giants?
My ongoing interview tour of the leading minds of the telecom industry recently took me to Richardson, Texas, where I met with Rod Naphan, CTO and SVP, Solutions, ...
I recently popped down to Texas to chat with CEO Eric L. Pratt about his company, Taqua.
Cats with Phones