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Video market set for seismic shifts after Tandberg acquisition

Alex Scroxton
Players in the nascent video channel expect to see major shifts in the market landscape in the coming months, following the announcement earlier that Cisco has completed the acquisition of Tandberg.

Terry Dwyer, managing director at managed video-conferencing provider mvision, told MicroScope that the Tandberg channel is much smaller than Cisco's operation, and as such their skills are in demand.

"We are already seeing consolidation in the marketplace and we are talking to a number of Cisco partners about helping them with their strategy," he said.

He did not say if mvision was likely to become acquisitive itself, although the firm does have plans to become a fully-fledged Cisco partner in the near future, but added: "There will definitely be a catalyst for a consolidator in the market at some point. We are very popular right now."

Dwyer welcomed the acquisition, saying "it is fantastic news for the industry as it finally brings video to the mass market. Cisco has the money and the leverage to push it into the mainstream."

On the Cisco side, partners were also keen to take advantage of the coming together of the two firms.

"Cisco TelePresence is very high-end, but there's an opportunity now to take it [video] down into small and medium enterprises," said Paul Sweeney, managing director at ANS.

"Tandberg suits our customer base more, so we've been waiting for the acquisition to go through before taking it on," he added.

EuroLAN managing consultant Keith Humphreys said integrating the two channels needed to be a top priority for Cisco.

"I can't see them keeping Tandberg separate for long, they will bring the brand in pretty quickly," he said.

Martin de Beer, Cisco senior vice president of emerging technologies, claimed it was "business as usual" for the channel.

"We have a very good plan to maintain momentum and we don't believe there is anything that will change that," he said.

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