Cisco take on WebEx

Cisco Inc has announced that it has agreed to acquire Online meeting company WebEx communications for about 3.2 billion$.WebEx was found by subrah.S.Iyar,a IIT Mumbai passout.WebEx has sales of $380 million, and a net income of around $47 million and its offers services like online conferencing and secure instant messaging.

So,what made Cisco,the world's leader in computer networks acquire WebEx????

As per GigaoM Cisco has done this just to take on with Microsoft who is trying to take on Cisco in VOIP business.The two companies will continue to butt heads as the worlds of computing and communication collide and become 'comm'puting. WebEx which started out as a simple web conferencing company has started to take on some of the qualities Microsoft like Shared workspaces, email and even office type apps .This might had atrracted Cisco.
Whatever the situation is one more Indian Enterpreuner got rich now.WebEx has about two million customers, many in the small to medium sized businesses - an area of focus for Cisco in recent years. With the Linksys business unit’s special focus on SMB,the deal has very less downside so far unless Cisco mess up the things.
If you have any other reason why Cisco might had acquired WebEx post it as comment!!!


The one company that has really taken advantage of the opportunities presented by the Extended Enterprise is Webex. Will Webex remain independent till the end? Strategy consultant Sramana Mitra presents her analysis.
Link: http://sramanamitra.com/blog/584

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