On 23 October, Cisco made a MUSD 1.9 bid for Broadsoft, which delivers cloud-based solutions in UC, collaboration and contact centre.
The acquisition will complement the Cisco portfolio well and expand the company’s offering to suppliers and operators able to package services for their solutions. The Broadsoft acquisition supplements Cisco’s existing business models, on-premise and hosted solutions with products that are based on SaaS and cloud services.
A brief analysis of the respective portfolios reveals a fairly broad overlap of functionality, above all regarding Cisco’s businesses based on the Spark portfolio. We can hope that certain products, such as Webex, bought up by Cisco back in 2007, and other relatively outmoded systems, will be phased out in favour of Broadsoft’s more up-to-date solutions.
From a Swedish and Nordic perspective, however, it may seem to be rather late to enter this market. After all, we started our move to mobile solutions and cloud-based services long ago. Via its acquisition of Telepo, Mitel paved the way in this area and seems to have managed the shift from on-premise to cloud-based solutions with ease.
From an international viewpoint, and perhaps above all from the perspective of the North American market, this is an important business. The move away from on-premise solutions still offers a major area of potential.
Whether Cisco will be able to meet the considerably greater challenges represented by Amazon Chime and Microsoft Skype remains to be seen.
This was Cisco’s 200th acquisition and we can expect more.