September 23, 2008

Cisco Acquires Instant-Messaging Start-Up

Cisco has agreed to acquire open-source instant-messaging start-up Jabber for an undisclosed sum to enhance its unified communications and collaboration product portfolio.

Colorado-based Jabber provides a messaging platform that supports different devices, users, and applications and allows collaboration across Microsoft Office Communications Server, IBM Sametime, AOL AIM, Google, and Yahoo.

After the acquisition, Jabber will become a part of the Cisco Collaboration Software Group (CSG). Cisco said the acquisition will allow it to incorporate Jabber's presence and messaging services in the network and offer aggregation capabilities to users through both on-premise and on-demand applications across multiple platforms including Cisco WebEx Connect and Unified Communications.

The acquisition is part of the company's "build, buy, and partner" strategy to move into new markets and capture key market transitions. Earlier this month, it acquired e-mail and calendaring software provider PostPath for $215m. Other recent acquisitions by the company include WebEx, IronPort, and Securent.

Doug Dennerline, senior vice president of Collaboration Software Group at Cisco, said: "Enterprise organizations want an extensible presence and messaging platform that can integrate with business process applications and easily adapt to their changing needs. Our intention is to be the interoperability benchmark in the collaboration space."

The transaction is expected to be completed in the first half of its fiscal 2009.