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Cisco Needs Acquisitions for Digital Home

Cisco's recent acquisitions of Scientific Atlanta, Linksys and Kiss Technologies are part of a carefully tailored strategy to become a digital home market leader, according to the latest Strategy Analytics Connected Home Devices report, "Cisco Targets $74 Billion Connected Home Market For Revenue Growth."

With global demand for IP-enabled connected devices set to reach $74 Billion by 2010, Cisco is banking on taking a top-3 market position in order to secure longer-term revenue growth. This report concludes that Cisco will have to pursue further deals and adjust its product strategy if it is to succeed.

Peter King, Director, Connected Home Devices, states, "Two key factors lie behind Cisco's recent acquisition spree: driving new revenues from consumer video markets and strengthening the company's business with network operators. But our analysis suggests Cisco still has gaps in its portfolio. This goal of a top three position in networked home entertainment is unlikely to be achieved without making further investments."

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