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Cisco Gets Analytical and Boosts Videoscape with Acquisition of BNI Video | Oct 24, 2011 | Digital Media Infrastructure | Analyst: Ron Westfall Event Summary October 20, 2011 -- Cisco announced its intent to acquire privately held BNI Video for $99 million. BNI Video supplies service providers with two video products that offer video back-office and content delivery network (CDN) analytic capabilities. The acquisition will become integrated in Cisco's Videoscape TV platform, which is designed to allow service providers to deliver video experiences to multiple devices over Internet Protocol (IP) networks. The acquisition is expected to close by the end of Cisco’s Q3 FY 2012. | Read Press Release | Quick Take Analytical Summary • Current Perspective: Positive on Cisco’s pending acquisition of BNI Video for $99 million, because the move signals that Cisco will continue to invest in upgrading its Videoscape platform through acquisitions. With operators intent on monetizing and managing the OTT content flowing through their networks, Cisco addresses two pain points with the acquisition. First, the BNI video back-office and control plane technology enables operators to streamline their management and view of the devices and traffic on the network. Second, the BNI CDN analytics technology gives operators a critical tool to justify their investment in internal CDN technology, as CDN analytics will become requisite for understanding consumer (and enterprise) viewing patterns in multi-screen environments. • Vendor Importance: High to Cisco, since it needed to acquire the BNI Video technology to address the lack of CDN analytics and video back-office and control plane management tools in its Videoscape portfolio. Cisco recently acquired ExtendMedia for its VoD/linear content management assets and Inlet for its ABR video processing assets. This enables Cisco to meet both the pay-TV and evolving OTT management and monetization challenges that operators confront in increasingly complex multi-screen environments. BNI needed to merge with Cisco to improve its long-term channel prospects, especially in non-cable operator segments (e.g., telcos, broadcasters). • Market Impact: Moderate on the overall digital media infrastructure market, because Cisco wields the channels and Videoscape portfolio depth and breadth to oblige rivals to respond to its high-profile moves such as acquisitions. While the acquisition of BNI Video will not surprise rivals, since Cisco was already an investor in the company, locking up of BNI’s CDN analytics assets gives Cisco a leg up in this fast-emerging area of operator priority. Now, rivals will at least need to refresh how their solutions and partnerships meet the burgeoning CDN analytical needs of operators. CLIENTS ONLY Current Analysis Perspective Competitive Strengths and Weaknesses Response & Recommendations Buyer Actions | Client access - Full report in Digital Media Infrastructure | More information Top Top

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Cisco Announces Intent to Acquire BNI Video

Acquisition Will Advance Cisco's Videoscape Service Provider Video Strategy

SAN JOSE, CA--(Oct 20, 2011) - Cisco (NASDAQ: CSCO) today announced its intent to acquire privately-held BNI Video. Headquartered in Boxborough, Mass., BNI Video supplies service providers with two major video products that offer video back-office and content delivery network (CDN) analytic capabilities. The acquisition will advance the capabilities of Cisco's Videoscape TV platform, which allows service providers to deliver compelling video experiences to any device over any Internet Protocol (IP) network.

"Cisco is committed to working with our service provider customers to deliver next-generation IP-based video experiences across devices," said Marthin De Beer, senior vice president and general manager of Cisco's Emerging Business Group. "Service providers globally are embracing our Videoscape vision, and today with the acquisition of BNI Video, we are augmenting our Videoscape platform and giving customers a clear migration path to Videoscape."

BNI Video's technology will also help Cisco's service provider customers reduce their operational costs and complexity, while expanding monetization opportunities. Two industry-leading service providers, Comcast and Time Warner Cable, were early investors in BNI Video along with Cisco, and both commented on the acquisition.

"As a founding investor in BNI Video, Comcast Ventures recognized the potential for this technology to play a critical role in advancing video experiences for Comcast's customers," said Tony Werner, chief technology officer, Comcast. "With the combined expertise in IP video systems, Cisco and BNI Video offer service providers a compelling software and infrastructure platform to efficiently deliver video content to multiple devices."

"Time Warner Cable invested early in BNI Video, as it brought a unique software platform to market that addresses the back-office complexities of delivering TV Everywhere services," said Mike LaJoie, chief technology officer, Time Warner Cable. "Combining forces with Cisco presents an opportunity to take video service providers to the next level with Internet video, helping to manage networks more efficiently to deliver advanced TV entertainment experiences to consumers."

Video, one of Cisco's five company priorities, is the biggest growth driver for IP traffic and, as a result, the company's core networking business. The BNI Video acquisition follows the recent acquisitions of ExtendMedia and Inlet Technologies, which also strengthen Cisco's Videoscape portfolio. In addition, with BNI Video headquarters in Boxborough, this acquisition builds upon Cisco's already strong presence in the greater Boston area and follows past acquisitions in the region such as Starent Networks and LineSider.

Upon the close of the acquisition, BNI Video employees will be integrated into Cisco's Service Provider Video Technology Group. Under the terms of the agreement, Cisco will pay approximately $99 million in cash and retention-based incentives in exchange for all shares of BNI Video. The acquisition is subject to various standard closing conditions and is expected to be complete in the second quarter of Cisco's fiscal year 2012.