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Cisco Takes $5 Billion Video Plunge with NDS Acquisition

NDS develops software that enables service providers to deliver content. The NDS technology will be complementary to what Cisco's Videoscape networking initiative delivers from an infrastructure perspective. The acquisition will also move Cisco further into the software space.

Cisco CEO John Chambers explained during a webcast with press and analysts, that the acquisition of NDS will move his company more towards becoming a software company.

"It will move us into the cloud and move us even closer to deliver solutions to our customers both in terms of software and also professional services," Chambers said.

The NDS technology fits into Cisco's Videoscape vision which is all about enabling the network for video content delivery. NDS Executive Chairman Abe Peled noted that his company today has technology deployed in over 125 million homes worldwide. Peled explained that his company's technology is all about enabling a seamless customer experience for viewing content in an easy and intuitive way.

"The trick in technology is to take the complexity away, allowing it to be used in a simple fashion" Peled said.

Once the acquisition is completed, Peled will be reporting to Marthin De Beer, SVP of the Video and Collaboration Group at Cisco. De Beer emphasized that NDS is a perfect fit to fully enable Cisco's portfolio of solutions.