Just a few days after launching the new integrating strategy called Unified Computing System (UCS), Cisco Systems made public its intention to purchase e Pure Digital Technologies, the company that makes the popular Flip Video, a pocket video camera that can record up to 60 minutes and stock it on the internal flash storage.  

 

Cisco will reportedly pay $590 million in stock in will get Pure Digital’s shares. This is very good news for Pure Digital, an eight-year-old startup which now has 100 employees and which had a considerable success with its highly practical video cameras. It sold over 2 million cameras since it launched it in 2006 in the United States. 

 

The story of Pure Digital so far is a happy one. Amid countless story of failing companies due to the current economic meltdown, Pure Digital is like an island in the ocean. However, apart from the fact that Pure Digital got what it wanted, there’s one question: what does Cisco want from this acquisition? 

 

It’s not the company’s first step in consumer electronics. It already did it in 2003 by purchasing Linksys and its line of home and small businesses networking gear. In 2005, Cisco made the second step by acquiring Scientific Atlanta, a top producer of cable TV set-top boxes. 

 

Cisco’s aim with this move is probably visual networking, a market which has seen a boost in demand lately. It’s a quite logical step for Cisco, considering the fact that over the past couple of years, the company expanded its reach beyond selling equipment for large computer centers and now has all that it needs to bring Internet sharing services on the Flip camera through Wi Fi.