Thoughts on Tech, Deals, and Markets

CISCO a SaaS Social Networking Company?

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Cisco just announced a hosted social networking product for media companies.

Not sure I get that.  Their rationale?  First, they want to help old media companies deal with the disruption caused by digital technology.  Second, it’s complementary to their core Internet infrastructure business since more social networking usage will create more demand for Cisco infrastructure. Hmm. The first reason seems like adding a few bricks to the Maginot Line the old media companies have been diligently building to ward of new media companies since the mid-90’s.  If they’re going to help old media companies fight the Internet, might as well help them put Craig’s List and Google out of business—that would really help them fight those pesky 1’s and 0’s that are ruining everything! On the second reason, every information-based product or service belongs online so is complementary to Cisco’s infrastructure business.  So are they going to become a media company themselves to stimulate bandwidth demand? How about launching a P2P bootlegged movie downloading service.  That will really clog up those pipes and sell more routers!

Written by sandykory

January 8, 2009 at 2:12 pm

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