Next for Arris: Why Not BigBand?
In parallel, fresh off its announced C-COR Corp. (Nasdaq: CCBL) acquisition, Arris Group Inc. (Nasdaq: ARRS)'s CEO says the company is still shopping. (See Arris Takes 'Giant Leap Forward'.)
With C-COR, Arris will be the largest pure-play cable vendor, offering everything from HFC (hybrid fiber/coax) plumbing to video-on-demand (VOD) servers, edge QAMs, cable modem termination system (CMTS) solutions, OSS, and embedded multimedia terminal adapters (E-MTAs). The only infrastructure products the company lacks for cable are video encoding and stat-mux capabilities, both of which BigBand offers. Conversely, BigBand's weakness is the CMTS business it acquired from ADC (Nasdaq: ADCT).
Were Arris to acquire BigBand, it would instantly fill its video hole.
Additionally, if Arris, the industry's No. 2 CMTS supplier, agreed to absorb and support BigBand's lagging Cuda CMTS product line, it would reinforce its position as a "good friend" for its MSO customers. And, Arris would stand alone as a cable supplier ready to go toe-to-toe with Cisco Systems Inc. (Nasdaq: CSCO) and Motorola Inc. (NYSE: MOT) for the long haul.
— Michael Harris, Chief Analyst, Cable Digital News