Cisco Systems to buy IP-video supplier SyPixx Networks

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Thursday, March 16, 2006

SAN JOSE, Calif.--In a move anticipated by many industry observers, router and switch giant Cisco Systems has announced an intent to buy SyPixx Networks, a Connecticut-based manufacturer of encoders/decoders, transmission equipment, management software and more geared toward the IP video market.
"SyPixx is what's part of what we call an emerging technology," said Cisco director of product marketing Steve Collen. "It's a business space that has large revenue potential for us and drives our existing core business, routers and switches. Because video surveillance is an application running across the network, it's also an application that drives the revenue of our routers and switches."
Collen cited analyst data that says the digital component of the IP video market alone will be around $2 billion in 2007, with associated services growing the market to roughly $7.5 billion. He sees the market growing anywhere from 30 to 50 percent annually.
If the roughly $51 million purchase comes to fruition, it will not only allow Cisco to get a toehold in the IP video surveillance market, said Collen. SyPixx, which will be rebranded as Cisco, also "offer us encoders and decoders that translate from analog to digital environments. So we can take an analog camera and connect it to an IP network, as well as providing us with the interface to video storage, so we can access analog and digital video."
"It's a really good play," he continued. "It also gives us access to this really good legacy base. The legacy equipment has lots of drawbacks. It's difficult to call up remote video, live or stored." Going to network, that gets much easier, he said.
For more on this story, see the April issue of Security Systems News.