Feed Techdirt: Cisco Adds To Its Collection Of (Social) Networking Gear (techdirt.com)
Cisco has always been an aggressive acquirer, as it has historically bought and integrated the technology of small networking firms. The company has been doing a lot of deals once again, but this time it isn't buying actual networking gear, but rather tools for social networking and collaboration. The company's latest purchase is of Five Across, which makes social networking tools to help companies interact with their clients. While some may argue that the move into social networking is an obvious evolution for the company, it's not clear that these acquisitions will work out just as well as they did in the past. Because the company is dominant in its core market of selling gear, the company can easily sell acquired technology at a nice premium. It doesn't enjoy anywhere near a similar position in this new market, so it won't be so easy to sell its clients on these new purchases. However, if it can convince its clients that social networking tools and physical networking tools are complementary in some way, it may become a player.