Cisco pays $590 million for Pure Digital…

It is late in the day, 1.14 am to be precise. However,  I think people do not have the right perspective on the Pure digital acquisition.

My understanding- not verified- is that Cisco focus groups showed that with “High Definition TV” even Grandmas are willing to video-conference with grandkids. With the quality of less than professional video, a lower resolution is not satisfactory to most people to “want to videoconference”.

$590 million sounds like a lot to pay for something that does not seem to have a market. But I think Cisco sees it as a way by which Video Telephony, as well as sharing of Videos as a part of the online Web experience goes mainstream.

Any insiders want to chime in with comments?

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Published in: on March 24, 2009 at 5:20 am  Leave a Comment  

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