By Ritsuko Ando and David Brunnstrom
NEW YORK/BRUSSELS, March 29 (Reuters) - Cisco Systems Inc claimed two major victories on Monday to secure its position as the world's top videoconferencing provider: a big sale of its high-end video system and regulatory approval for its acquisition of Norway's Tandberg.
Cisco said it won a multi-year deal to supply TelePresence systems to Bank of America, reflecting the growing popularity of advanced, video communications systems.
TelePresence aims to create the experience of face-to-face meetings through high-definition video technology.
The company said 200 units of TelePresence will be deployed across Bank of America's global operations by the end of the year, with more expected in the following years.
'We speculate this deal to be in the range of $50 million, including services, which would be the largest TelePresence deal by far,' said Jason Ader, an analyst at William Blair & Co.
Bank of America said TelePresence would help reduce the need for travel, which would cut costs and help its workers better manage work-life balance.
The size of the deal did not appear to move the needle for Cisco considering its revenue of around $10 billion a quarter, but Ader said it was 'significant nonetheless as we believe it signals that videoconferencing and TelePresence are starting to move into a phase of more mainstream adoption.'
The announcement came after Cisco secured EU regulatory approval for its acquisition of Tandberg, a deal worth over $3 billion. The deal makes the world's biggest network equipment maker the biggest videoconferencing provider as well.
The approval was conditional on Cisco ensuring the compatibility of the video products with those of its competitors. The U.S. Justice Department also said it will not challenge the deal.
Tandberg has a 40 percent share of the mid-tier market, and its products are seen filling a gap between Cisco's TelePresence systems and WebEx desktop video service. (Additional reporting by Jeremy Pelofsky, editing by Dave Zimmerman) Keywords: CISCO/ (ritsuko.ando@thomsonreuters.com; +1 646 223 6084; Reuters Messaging: ritsuko.ando.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
NEW YORK/BRUSSELS, March 29 (Reuters) - Cisco Systems Inc claimed two major victories on Monday to secure its position as the world's top videoconferencing provider: a big sale of its high-end video system and regulatory approval for its acquisition of Norway's Tandberg.
Cisco said it won a multi-year deal to supply TelePresence systems to Bank of America, reflecting the growing popularity of advanced, video communications systems.
TelePresence aims to create the experience of face-to-face meetings through high-definition video technology.
The company said 200 units of TelePresence will be deployed across Bank of America's global operations by the end of the year, with more expected in the following years.
'We speculate this deal to be in the range of $50 million, including services, which would be the largest TelePresence deal by far,' said Jason Ader, an analyst at William Blair & Co.
Bank of America said TelePresence would help reduce the need for travel, which would cut costs and help its workers better manage work-life balance.
The size of the deal did not appear to move the needle for Cisco considering its revenue of around $10 billion a quarter, but Ader said it was 'significant nonetheless as we believe it signals that videoconferencing and TelePresence are starting to move into a phase of more mainstream adoption.'
The announcement came after Cisco secured EU regulatory approval for its acquisition of Tandberg, a deal worth over $3 billion. The deal makes the world's biggest network equipment maker the biggest videoconferencing provider as well.
The approval was conditional on Cisco ensuring the compatibility of the video products with those of its competitors. The U.S. Justice Department also said it will not challenge the deal.
Tandberg has a 40 percent share of the mid-tier market, and its products are seen filling a gap between Cisco's TelePresence systems and WebEx desktop video service. (Additional reporting by Jeremy Pelofsky, editing by Dave Zimmerman) Keywords: CISCO/ (ritsuko.ando@thomsonreuters.com; +1 646 223 6084; Reuters Messaging: ritsuko.ando.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2010 AFX News
