Friday, November 10, 2006

The Iceberg Effect

Cisco is back in favour as the need to deliver video over the internet is credited with its stellar quarterly results. It makes Cisco's acquisition of video hardware manufacturer, Scientific Atlanta, look very smart.

Video demands gig or multi-gig routers, firewalls and load balancers. So, Cisco's peerless sales force now have a great new market to tackle.

This is what I call the iceberg effect. For every Youtube and Brightcove with their high profiles and exaulted valuations there are hundreds of quiet winners, especially those companies providing the infrastructure for TV 2.0.

Thanks to the fallout from the dot com era many natural players such as 3Com and Nortel have fallen behind in this market and concentrated on VoIP, but now have an opportunity to play catch up. Other companies worth keeping an eye on are France's Thomson and Alcatel.

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