Cisco doubles down on video conferencing; Acquires Tandberg for $3 billion

Cisco doubles down on video conferencing; Acquires Tandberg for $3 billion

Summary: Cisco is beefing up its video conferencing arsenal, picking up Tandberg, a Norwegian video conferencing outfit, for $3 billion.In a statement, Cisco said it is acquiring Tandberg to expand its collaboration platform.

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TOPICS: Cisco
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Cisco is beefing up its video conferencing arsenal, picking up Tandberg, a Norwegian video conferencing outfit, for $3 billion. In a statement, Cisco said it is acquiring Tandberg to expand its collaboration platform. With the deal, Cisco will bring in Tandberg's network infrastructure and video conferencing equipment (right).

The deal is expected to close in the first half of 2010 and boost Cisco's earnings in fiscal 2011. Tandberg's 1,500 employees will be part of Cisco.

So what's Cisco's plan? Tandberg's gear will be integrated in with Cisco's TelePresence portfolio. Meanwhile, Tandberg's endpoints will give Cisco more of an installed base to sell into. Tandberg's portfolio includes everything from desktop video conferencing systems to multiscreen telepresence systems. Simply put, Cisco is trying to take its telepresence act to multiple points.

Here's a brief look at Tandberg's porfolio:

Tandberg CEO Fredrik Halvorsen will lead Cisco's TelePresence Technology Group. He will report to Marthin De Beer, senior vice president of Cisco's emerging technologies group.

In a research note, Cowen analyst John Marchetti said:

We note with Tandberg's broad installed base, Cisco now has the ability to more aggressively push a full portfolio of collaboration and video networking solutions to a much wider customer base and we expect the company to aggressively target the mainstream enterprise video conferencing market with the Tandberg product set, a market that Tandberg enjoys leadership in today along with Polycom. The only overlap between the two companies from product perspective is at the high-end Telepresence level where we expect some product rationalization is likely to occur, with Cisco maintaining its Telepresence solution and making it interoperable with the full suite of Tandberg conferencing products.

Topic: Cisco

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7 comments
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  • "Tandberg, a Norwegian video conferencing outfit"

    You must awfully young. Not that many years ago, Tandberg was a major manufacturer of hi-fi equipment, especially tape recorders. They had a running rivalry with Nakamichi over who made the best cassette deck.
    GrizzledGeezer
    • Tandberg lives another high-tech life!

      Yes, it is kind of cool to know my Dad's beloved old tape recorder, which he recorded many live events with, has lines to the current environment. His was mid-60's equipment and fit in well with his Mac (no, not that Mac) equipment. He was quite the audiophile in his time, God bless him.
      J044NY8
  • RE: Cisco doubles down on video conferencing; Acquires Tandberg for $3 bill

    Tandberg also makes one of the two instant language
    translation systems that is used at the UN
    rosebud70
  • RE: Cisco doubles down on video conferencing; Acquires Tandberg for $3 billion

    Tanderg is an excellent company with superior technology; has been for 50+ years,and a great fit for Cisco's desire to be the Collaboration and Conferencing leader.
    This definitely will contribute to the Cloud revolution, if managed aggressively to develop specific Solutions applications in the highest growth areas; Health, Education, Cloud Commuting, to name the highest priorities.
    BaltimoreBarry
  • Tandberg Companies

    There is a family of Tandberg companies, including the video-conferencing unit (now Cisco), the data backup and restore unit (formerly Exabyte), the Hi-Fi audio division, and others.

    http://www.tandbergdata.com/us/en/about-us/tandberg-companies/
    ion_tichy
    • I think you are wrong.

      If you look at the bottom of the webpage of the link you have listed there is an disclaimer about these companies sharing the same "Tandberg" name but are apparently totally separate companies:

      "The links on this page are provided as a service to those who arrive at this page seeking another Tandberg company. Tandberg Data takes no responsibility for listed contents, products, offerings and services provided by the companies/organizations mentioned above."

      I have an Exabyte VXA tape drive and periodically need to check their website for updates, news and notice nothing about this acquisition/merger by Cisco.
      phatkat
  • This is making me dizzy.

    Having been in K-12 IT for many years and the last ten or so in university settings, Tandberg is a well known name. You'll find tons of their equipment in just about any language lab you walk into. That's their bigger business line from what I can tell, but they do operate that as a separate business and I don't think that it will be part of this transaction.

    However until the last year or two, they've been a lesser player in the H.323 video conference business (at least from what I've seen) by comparison to Polycom. That is until Tandberg picked up the privately held Codian out of the UK a year or two ago.

    Codian makes some of the best video conference rack equipment around (MCU's, IPVCR's, etc.). Perhaps Cisco were kicking themselves in the butt for not snapping up Codian directly when they were available and had to take the bigger fish by purchasing Tandberg to get the Codian technology.

    Codian seems a better fit for them vs. interest in the actual end-point business. However no harm in having a good starting point for end-point supply. Tandberg make some nice units but they tend to be a bit pricey compared with Polycom equivalents.
    r.u.FED.up.2