Cisco buys telly on-demand outfit

MAKER OF the thingees that connect computers together, Cisco has splashed out $92 million in used banknotes to buy an outfit which says can it can deliver television, movies and other video over the Internet.

Arroyo Video Solutions, which was founded in 2002 and has 44 employees. It claims it can "revolutionise the way people watch TV" although how its system differs from having users switching it on and using their eyes, it does not say.

In actual fact Arroyo pens software to help servers store and send digital video. Cisco's cunning plan is that the purchase would make it easier for its routers, switches and other networking products to store, send or receive video online.

IDC thinks the move "fills a spot" in the video distribution network and it buys Cisco a wonderful piece of technology and a good host of talented people.

More in the FT here. µ