Cisco acquires Navini, targets WiMAX

AFTER years of disinterest, network giant Cisco Systems has thrown its weight behind the WiMAX standard, buying Texas-based WiMAX specialist Navini Networks for US$330 million (A$358 million).

The Richardson, Texas-based Navini is a leader in mobile WiMAX 802.11e-2005, announcing during the week that it had signed a definitive acquisition agreement with Cisco.

Navini has been a pioneer in the integration of “smart beamforming” technologies with Multi-Input, Multi-Output (MIMO) antennaes, a combination that improves WiMAX performance and range while lowering operational costs for service providers.

Cisco said in a statement that Navini’s products would extend Cisco’s WiFI and WiFI-Mesh product range. The company said it expects the broadband wireless market to be one of the fastest growing and that Navini expertise would help realise its IP Next Generation Network (IP NGN) plans.

After years talking down WiMAX systems, Cisco has changed its view of the technology.

Cisco senior vice-president and Service Provider Technology Group general manager Tony Bates said WiMAX had matured, and that Cisco had been listening to the demands of its customers.

“Recently, the WiMAX radio systems to deliver broadband wireless have matured, customers are deploying live networks, and overall investment and demand as increased,” Mr Bates said. “Therefore, Cisco views this as the proper time to add licensed WiMAX products to our broadband wireless offer.”

“Also, given the IP-centric nature of the WiMAX technology, it is a natural fit for Cisco's strategy, experience, expertise, and IP NGN product portfolio,” he said.

“Licensed WiMAX radio systems represent a strategic opportunity for Cisco to quickly address the pent-up demand for broadband connectivity in emerging countries where penetrations are comparatively low.”

Under the terms of the agreement, Cisco will pay approximately $330 million in cash and assumed options. The Navini acquisition is subject to various standard closing conditions and is expected to close in the second quarter of Cisco's 2008 fiscal year.

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Cisco maps China strategy

COMMUNICATIONS giant Cisco has become a cornerstone investor in the Chinese online B2B marketplace Alibaba.com as part of a multi-billion push into the China market over the next five years.

Cisco chief executive John Chambers said the company’s total commitments in China – including procurement activities – had amounted to US$8.5 billion (A$9.24 billion) since 2002, a number now expected to expand to US$16 billion over the next five years.

Mr Chambers was outlining a broad range of initiatives in China ranging from heavy investment in education through the rapid expansion of the Cisco Networking Academies program, US$400 million in venture funding for China projects and the establishment of the company’s first “green” technology centre for R&D into sustainable development.

Mr Chambers also signed a memorandum of understanding with Chinese B2B online marketplace Alibaba.com that includes a US$17.5 million investment as a foundation shareholder in Alibaba.com’s upcoming initial public offering.

“Our collaboration with Alibaba Group will play an important role in helping extend our industry-leading SMB solutions effectively into the Chinese market,” Mr Chambers said.

“By combining Cisco's technology leadership with Alibaba Group's community of eCommerce in China, we will help drive market transformation through innovation and bring benefits to SMBs as well as consumers in the Web 2.0 Era,” he said.

Under the terms of the MOU, Cisco and Alibab.com will explore ways to jointly offer collaboration and business management solutions to small and medium businesses (SMBs). Cisco also agreed to cooperate in assisting the Alibaba Group’s market expansion outside of China.

“We look forward to cooperating with Cisco to find ways to bring software services to China's SME's,” Alibaba Group chairman and chairman Jack Ma said.

“China is entering a golden era for enterprise software services and collaborating with Cisco will help us meet our goal of bringing world class technology to China's businesses.”

Cisco takes aim at small business

AFTER years focused on almost exclusively on big business and big government sites, networking giant Cisco Systems has turned its attention to the fast growing small and medium sized business market.

At its annual channel conference in Las Vegas this week the company launched a suite of new products targeting SMBs, and revamped its channel program to allow for a new entry level certification for channel partners with a primary focus on small business.

At the heart of the launch is the Cisco Smart Business Communications System, a simple, complete and highly secure platform for enabling anytime anywhere access to information.

“Cisco's success is built on listening to customers and partners to capitalize on market transitions. Three years ago they asked us to transform our SMB strategy in order to better address their specialised needs,” Cisco chairman and chief executive John Chambers said.

“Today we are the network leader in the SMB market. As we continue to raise the bar in terms of our investments in and offerings to SMBs, we believe we are uniquely positioned to deliver the total communications experience they require,” he said.

The system employs new hardware products, integrated unified communications applications and system-management tools designed to complement each other and provide communication building blocks for small businesses, the company said.

The new products include the Cisco Unified Communications 500 Series, a platform that includes IP telephony software features for VoIP, internet conmnectivity with firewall protection, virtual private networks (VPNs) and wireless LAN access.

In addition to announcing it first new certification in more than 10 years, Cisco also unveiled its first market segment specialisation – SMB Specialisation. These program enhancements will help accelerate growth and foster differentiation in the channel, by providing the tools, training and incentives that meet the needs of today's SMB-focused partners.

The Cisco Smart Business Communications System will be available through worldwide channels in June 2007. The US list price for the system will start at US$699 (A$860) per seat, which includes the network with complete Cisco Unified Communications system capabilities and a Cisco Unified IP Phone.

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IBM, Cisco merge technical support services

IBM and Cisco are to combine support services where the companies share a mutual customer in a dramatic expansion of a tight service alliance that already exists in the United States.

The companies said their Global Services Alliance, which is already in operation in the US to service joint customers, is to be expanded into 46 countries worldwide, including Australia, most of Europe and the Asia Pacific.

The collaboration means that IBM customers who purchase Cisco networking technology solutions will now get a globally consistent level of IT infrastructure support.

The companies said its advantage for customers was that it combined IBM's extensive service delivery capabilities with Cisco's technical expertise in one integrated support offering.

IBM would market the services offering under the name "IBM managed maintenance solution for Cisco products," while working with Cisco to deliver the service.

IBM would provide the customer with consolidated call management for all networking devices and would retain responsibility for resolving customer issues, the companies said.

“Providing a collaborative maintenance service offering means our mutual customers will no longer need to choose between Cisco networking skills or IBM multi-vendor systems integrator capabilities,” Cisco vice-president Karl Meulema said.

“Instead customers get the collective expertise of both companies,” he said.

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Cisco, Apple head to court over iPhone

NETWORKING giant Cisco Systems and Apple are taking their dispute over the ‘iPhone’ name into the eleventh hour with both companies agreeing to a deadline extension to later this week to avoid a court date.

Cisco lodged a trade mark infringement lawsuit with the US federal court in San Francisco last month to prevent Apple from using the iPhone name for its much-hyped music player/phone device.

Cisco’s Linksys division has been shipping a line of voice over IP (VoIP) devices branded iPhones since the early last year. The company has owned the iPhones since it acquired technology firm InfoGear in 2000, which had registered the name.

Apple has argued that it should be allowed to use the iPhone name because each company’s phone uses different networks and different technology – Apple’s is a cellular phone while Cisco’s is VoIP.

Cisco has previously said Apple could use the iPhone name, but had said it wanted both companies phones to be able to communicate with each other. It did not detail how the different technologies should communicate.

Cisco has now agreed to an Apple request to extend the deadline to respond to the lawsuit until February 21. Both companies say they aim to reach a “mutually beneficial” resolution outside of court.

Apple formally announced its iPhone product last month. It is due to ship in the US through the Cingular cell network in July with a staged roll-out across the globe scheduled over the next year and a half.

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