Cisco shells out $99m for CoreOptics Cisco Systems, the very rich and ever-acquisitive networking giant, has reached into its front pocket for some change to snap up CoreOptics, a maker of optical networking subsystems based in San Jose but with most of its engineering done in Germany. CoreOptics designs high-end networking ASICs that get implemented inside of …
Yet again Cisco when overtaken by just about everyone else in the market could:
a) look at their research budgets and actually research and design.
or
b) buy someone else out and struggle to integrate them into Cisco.
Still at least they kill off another competitor with option b.
The margins cisco makes and the resulting hoard they're sitting on means it makes more sense to buy than develop it from scratch. It means kicking out newly cisco rebranded product that much faster for more of that nice fat margin. Which incidentally is micros~1-type obscene. And yeah, they won't mind to kill two birds with one stone.
This deal seems a bit on the ludicrously cheap side, given that this is hardware that can do something very useful, and compared to the multimegabillions paid for weborhea2.0 companies without so much as a revenue model. Cisco can safely be assumed to have the best negotiators money can buy, but even so this seems a tad ridiculous.
Still and all, it isn't as if they didn't warn the world. They did in fact announce they'd exploit the downturn to spend a bit of their stack of sacks of cash and snap up some doohickeys for their stable on the relatively cheap.
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