Cisco Buys Norwegian Firm for $3 Billion

The HYPE and AURA:::
Nowadays, everybody is hot about video. In the domain of video, businesses cater for video conferencing. Big companies are on the move since the video communications came into demand. Cisco, a leader in communications systems provider at the internet level, has announced the acquisition of Norwegian Video Communications Company, Tandberg.

WHATS THE DIFFERENCE?:
Cisco sells EXpensive video communications systems to big business BUT Tandberg targets LOW COST video communications systems for small and medium business. Whats the management and decision level of this purchase? Tandberg is known to have sold systems which can interface with varying underlying technologies.

WHATS THE FLOW?:
The flow is pretty simple, CISCO targets much of the products in the networking domain, whereas the global internet traffic is on the Internet, the acquisitions show that Cisco wants this internet traffic to have a transition towards its networking products by the big-to-medium-to-small business and ultimately to the layman customer.

PROFIT MARGINS?:
Cisco's routers and networking products produce 65 % of Gross Profit Margins, where does the OTHER GROSS PART COMES FROM?

Cisco is expanding!