DISQUS

timlevad · 3 months ago

Good story, and I think you are probably right in the short term. I think the key point here is that all of these new video devices are sending their content straight onto the network. And if you ask Cisco why they bought Pure Digital, they would say that it was because it was a "market adjacency" to their core business, the network. The best thing about all of this competition in the video space for Cisco is that all of that video is getting uploaded and downloaded all the time. What do you need to upload and download tons of video? Big, fast pipes. Who delivers big, fast pipes? Cisco. While it may seem like bad times for Pure Digital, it's all good in the hood for Cisco as a whole. Full disclosure, I work at Cisco but not in PR or AR. These are my strictly my own views and do not represent Cisco as a company.

pelechati · 3 months ago

Yeah I see your point I just wonder how you justify paying 4x earnings for a hardware company when you are going to be in the space no matter what. Like you said regardless video is flowing through Ciscos pipes.

Props to Cisco though stock is doing well, nice dividend, crazy amount of capital. If you guys are interested my blog is for sale :)

timlevad · 3 months ago

The key is to think about the full Cisco portfolio when considering the PD acquisition. With Linkys, Scientific Atlanta (set top boxes) and Pure Digital: Cisco is setting the stage for in-home telepresence and beyond.