Cisco Acquires Tandberg: Who are the Winners and Losers?

Author: Stan Schatt, Contractor

Published: 05 Oct 2009

Cisco has just announced a $3 billion acquisition of Norway-based Tandberg. There are some clear winners and losers as a result of Cisco’s aggressive move. The acquisition makes perfect sense from Cisco’s perspective. The company has excelled in selling large room systems but did not have the product portfolio in the midsized and individual telepresence systems. Even more important, though, this acquisition addresses the primary objection many customers have expressed when it comes to purchasing a Cisco telepresence system besides the cost – the fear that they would be “locked into” Cisco’s proprietary system. Since many large companies have previously purchased video conferencing equipment from various vendors and might even have a telepresence room purchased from another vendor for one of its divisions, the need for Cisco to be interoperable with other vendors’ video products is critical.

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