Cisco Systems announced definitive agreements to acquire privately-held Cerent Corporation of Petaluma, CA and Monterey Networks, Inc. of Richardson, TX for a combined $7.4 billion in stock. With these acquisitions Cisco is entering a new business, the optical transport market, which is expected to be a $10 billion market in 2002 according to analysts.
This announcement is significant because Cerent and Monterey's technologies broaden Cisco's optical product portfolio. Both acquisitions are expected to provide service providers an accelerated migration from traditional circuit- based networks to new world cell and packet-based networks.
Under the terms of the Cerent agreement, 100 million shares of Cisco common stock will be exchanged for all outstanding shares, options and warrants of Cerent not currently owned by Cisco. Under the terms of the Monterey agreement, 7.3 million shares of Cisco common stock will be exchanged for all outstanding shares, options and warrants of Monterey not currently owned by Cisco.
Shomiti To Intro QoS VoIP Product
Shomiti Systems has announced that it will be introducing its new product at NetWorld + Interop Atlanta that answers one of the biggest challenges for voice-over-IP (VoIP) deployment: Quality of Service (QoS). With Shomiti's new VoIP product, Multi-QoS, companies can now analyze voice traffic over Ethernet-based IP networks and validate QoS parameters presented by PSTN/IP gateways, IP switches, and IPBXs.
Multi-QoS is targeted at carriers, equipment manufacturers and enterprise customers. Multi-QoS is a plug-in application to Shomiti's Surveyor software, Surveyor 3.0. This plug-in is the first of its kind to capture and decode the complete H.323 family of protocols, and provides detail and accuracy for measuring and metering multimedia (voice, video, data) streams on 10/100/1000 Ethernet networks.
Product pricing for the Multi-QoS plug-in will range between $3,000 and $4,000. Complete product pricing will be announced in late September.