Cisco Systems Inc.'s commitment to its consumer business is on display this week at the Consumer Electronics Show in Las Vegas. The company is introducing
three new products and two initiatives designed to enhance connectivity of digital products for the home and to help media and entertainment companies leverage online users.
What's interesting from a corporate dealmaker perspective is that Cisco's consumer business, a growing contributor to the bottomline, has been built on dozens of acquisitions completed over the past few years. A big one was Cisco's $500 million purchase in 2003 of Lynksys Group Inc., a maker of small and home office networking equipment. Two of the products being unveiled in Las Vegas -- a home audio solution and a media hub that connects home digital products -- are built on Lynksys technology. The new Cisco Eos, or entertainment operating system, software platform, a hosted product that helps media companies build online communities, was also built on Cisco's acquired digital networking technology.
Cisco's success in leveraging acquisitions only begins with anticipating market transitions and choosing the right target. The company's
commitment to integration and R&D plays a big role as well. Together, these elements have allowed Cisco to support its core networking equipment business with a growing consumer business that's innovating its way into new markets. The comprehensive acquisition strategy is also a big reason why in November Cisco claimed the top award in The Deal's inaugural
Most Admired Corporate Dealmaker survey.
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