Two more kids join Cisco gang

Cisco has continued its feeding frenzy by announcing agreements to gobble up Netspeed, a Digital Subscriber Line (DSL) manufacturer, as well as video distribution outfit Precept Software in stock deals valued at $236m (z154m) and $84m.

The NetSpeed agreement will allow Cisco to add central office products and broadband remote access to its DSL portfolio, enabling it to offer telcos and ISPs an end-to-end solution. It will also assure ISPs that the NetSpeed DSL equipment will interoperate with Cisco routers that are deployed across the internet.

The deal could dramatically accelerate the availability of high-speed remote access from homes and branch offices, and hasten the arrival of Asymmetric DSL (ADSL) services.

"This is a reflection of the growing blur between IT and telecoms," said Ovum analyst Kate Hewitt.

However, Neil Rickard, a research director at Gartner Group is sceptical about the deal. Only BT can offer DSL technology in the UK, he said. Rickard also said the Dagaz acquisition last year has failed to bear fruit.

"This image of Cisco having the Midas touch is an over-simplification - they're very much human," said Rickard.

IDC analyst George O'Connor was much more upbeat. "Cisco has a history of knowing how to tap into a nascent market, pushing the rest of the industry behind it," said O'Connor.