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
Network architects aiming to upgrade their networks to support agile, open, virtualized services in the 21st century need to consider new criteria when choosing between technology suppliers.
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
HP's Prodip Sen: The NFV Journey

7|7|15   |   21:39   |   (0) comments


Prodip Sen, CTO of the Network Functions Virtualization (NFV) business unit at HP, talks to Light Reading founder and CEO Steve Saunders about the four stages of the NFV journey.
LRTV Documentaries
PSA: The Perils of a Hyper-Connected Society

7|6|15   |   1:38   |   (0) comments


A public service announcement calling attention to the perils of a hyper-connected society.
LRTV Interviews
Guavus Takes Analytics on the Road

7|6|15   |   4:09   |   (1) comment


Guavus CEO Anukool Lakhina tells Light Reading CEO and founder Steve Saunders how the analytics tools developed for telcos are applicable to the transportation industry.
Telecom Innovators Video Showcase
Mellanox's New 25/50/100Gb/s Ethernet Products

7|6|15   |   2:44   |   (0) comments


Mellanox offers a complete 10/25/40/50/56/100Gbit/s solution that delivers industry-leading performance, scalability, reliability and efficiency for optimal application performance and data center ROI.
Telecom Innovators Video Showcase
Arista's CloudVision

7|6|15   |   6:01   |   (0) comments


Anshul Sadana answers questions from Steve Saunders, Light Reading’s founder and CEO, about Arista’s CloudVision, a global cloud network controller for workload orchestration and workflow automation delivering a turnkey solution for cloud networking.
LRTV Custom TV
Red Hat Demo

7|2|15   |   10:53   |   (0) comments


Red Hat's Nicolas Lemieux demonstrates how Red Hat is driving innovation through open source communities.
LRTV Custom TV
Red Hat's Approach to OpenStack Adoption

7|2|15   |   5:17   |   (0) comments


Red Hat's Radhesh Balakrishnan outlines his company's open source strategy for both enterprises and telcos.
LRTV Custom TV
The New IP Goes Mobile With vEPC

7|2|15   |   1:12   |   (0) comments


Heavy Reading's Gabriel Brown discusses results of a Light Reading survey sponsored by Brocade that shows a clear commitment by mobile operators to move quickly to virtual EPC deployment.
LRTV Custom TV
Making Business Sense of SDN

7|2|15   |   1:42   |   (0) comments


Results of a Brocade-sponsored survey show that CSPs have a clear sense of SDN use cases but are wrestling with the business case. Sterling Perrin of Heavy Reading looks behind the numbers.
LRTV Custom TV
NFV Will Be Here Sooner Than You Think

7|2|15   |   2:22   |   (0) comments


Forget the usual ten-year cycle for new technologies – NFV will be a core part of CSP networks in five years, based on results of a Brocade-sponsored survey, says Heavy Reading's Caroline Chappell.
LRTV Custom TV
The New IP Gains Traction With CSPs

7|2|15   |   1:42   |   (0) comments


Roz Roseboro of Heavy Reading analyzes results of a Light Reading survey sponsored by Brocade showing that CSPs are getting serious about making the transition to the New IP era.
LRTV Custom TV
It's (Real) Time for Analytics

7|2|15   |   1:42   |   (0) comments


Heavy Reading's Jim Hodges looks at how CSPs say they plan to use analytics to deploy new services in real time as part of The New IP, based on results of a survey sponsored by Brocade.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
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
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
All Upcoming Live Events
Infographics
Equinix walks through the past four digital economy eras from computing to network to connected to today's interconneted world.
Hot Topics
What's a Gigabit Good For?
Carol Wilson, Editor-at-large, 7/1/2015
Colt to Jettison Ailing IT Business
Iain Morris, News Editor, 6/30/2015
Eurobites: Activist Investor Takes Stake in AlcaLu
Paul Rainford, Assistant Editor, Europe, 6/30/2015
IoT in Action
, 6/30/2015
FCC Chairman Talks Up SDN/NFV
Mari Silbey, Senior Editor, Cable/Video, 7/2/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Prodip Sen, CTO of the Network Functions Virtualization (NFV) business unit at HP, talks to Light Reading founder and CEO Steve Saunders about the four stages of the NFV journey.
Casa Systems has been going from strength to strength over the last couple of years. In 2013, it became the first vendor to ship an integrated CCAP device -- the ...
Cats with Phones