Cisco’s 5 Billion Dollar Purchase

Cisco is on a buying spree and this is one of their biggest purchases valued at $5 billion after assuming $ 1 billion debt from NDS Group . Talks have been going on informally for the past year but serious discussion resulted in the sale which will be finalized in the second have of 2012. Along with Scientific Atlanta, this purchase and their Videoscape product Ciscowill be able to establish a very strong platform for the lucrative market in interactive entertainment and commerce.

NDS Group And Cisco

NDS is based in the United Kingdom and it is partly owned by News Corp with the remainder 51% owned by Permira Advisers LLP a private equity firm. They supply services and equipment to cable and satellite companies. The acquisition by Cisco the world’s largest supplier of networking equipment is seen as a good marriage if the growth in interactive entertainment and commerce expands as expected.

NDS Market

NDS provides the technology used by some of the largest cable and satellite providers around the world. Some of the companies include Cox, DIRECTV, Canal Plus, Sky Deutschland, Sky Italia, TataSky, China Central Television (“CCTV”) and Vodafone.  They are also expanding in major emerging markets where the conversion from analog to digital is taking place. This also gives Cisco access to more markets for their core business.


The Software

NDS software provides an end to end solution for services such as pay per view which allows the customer to view content anytime, anywhere on any device.


The software includes:


  • MedialHighway – a set-top box software that delivers programming on broadband and broadcast network
  • XTV DVR – allows pay per view subscribers to record content
  • NDS EPGs – lets the user discover content using different devices
  • VideoGuard – a security application that protects the content so only the subscriber has access
  • NDS Unified Headend – ensures the right content is delivered to the right subscriber on any device

The experience of working with 85 leading operators around the world gives NDS invaluable experience for product design and integration.

Future Of Digital Content

The future of digital content is growing at an enormous rate. Once the next generation of networks and bandwidth is in place you will be able to see unlimited contenton connected TVs, game consoles, smart phones and computing devices such as tablets and PCs. The future will give you more choice giving you the option of watching in demand and broadcast programming from around the world anytime. The content is also delivered with new hardware that accentuates the experience using high def televisions and 3D.


The convergence of all this technology means on thing for the customer, convenience. The days of watching what you want when the broadcasting companies demanded it are over. Once Cisco fully integrates NDS into their company they will be able to provide unimaginable amount of content available 24 hours a day almost anywhere and any place around the world. What this does is give you the choice of when you want to be entertained and by whom. This purchase is a great addition to the assets Cisco has acquired in video technology. The combination gives Cisco a clear advantage in providing on demand entertainment and content the customer in the future is going to expect.

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