Acano To Help Cisco Systems, Inc. (NASDAQ:CSCO) Enhance Interoperability And Scalability In Its Collaboration Business


If Cisco Systems, Inc. (NASDAQ:CSCO)’s collaboration business didn’t already have the kind of interoperability and scalability that customers want, the company is working to bring those capabilities through Acano. The $700 million buyout of Acano is expected to enable Cisco integrate its conferencing offerings with services such as Sky for Business from Microsoft Corporation (NASDAQ:MSFT). With its switching and routing business cooling, Cisco has been looking for redemption in security and Web conferencing, a division that grew 17% in the last quarter.

Cisco Systems, Inc. (NASDAQ:CSCO) is buying London-based collaboration infrastructure provider Acano for $700 million. The acquisition is expected to enable Cisco bring more interoperability and scalability functions into its collaboration services. Acano has already established an extensive network with major vendors of collaboration solutions. As such, the collaboration products that Acano offers can connect to wide range of endpoints and systems.

Customers ask for interoperability

With that, Cisco should be able to integrate its conferencing services with Skype for Business or and other collaboration products from other vendors. According to Cisco’s head of collaboration technology division,Rowan Trollope, their customers have been asking for product interoperability. As such, the move to enhance Cisco’s collaboration offering with service like Skype for Business goes alone way to render what customers have asked for.

Meeting scalability demand

In ordert to meet scalability demands, the technology that Acano brings will enable Cisco to render collaboration solutions that allow businesses to expand their Web conferencing connections without diluting the quality of video and audio in the conversation.

Cisco Systems, Inc. (NASDAQ:CSCO) is certainly hoping that the $700 million investment in Acano will give it the opportunity to enrich its collaboration products and also built a standout collaboration business.

Collaboration business

Cisco’s collaboration business contributed $1.1 billion of revenue in the last quarter, increasing 17% YoY but only constituting 9% of overall revenue in the quarter. Though collaboration is currently only a small part of Cisco’s business, it is promising to help the company compensate for the loss in its matured networking gears business.

The acquisition of Acano is expected to close in F3Q2016. Besides Acano, Cisco Systems, Inc. (NASDAQ:CSCO) has recently acquired several collaboration assets including Assemblage and Tropo.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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