Cisco and Skype: What Does it Mean for You?

What happens when the a networking and computer hardware company giant like Cisco teams up with an Internet communications company like Skype?  It could mean a very bright future in the world of technology.  TechCrunch, a blog that reports on technology stated last month that Cisco put in an offer to acquire Skype. This all comes before Skype, which is known for its Internet telephony that allows people to connect and speak on the phone through their web-based computers and other devices all over the world, can make an Initial Public Offering.

Skype, which was created in 2003 and is based in Luxembourg, announced plans to list on the NASDAQ early in August. Cisco’s offer came a few weeks later.

So if Cisco succeeds and acquiring Skype and Skype’s telephony technologies, what will happen?

Cisco currently offers a wide range of Internet telephony options, delivering benefits of converged networks while continuing to provide scalable, reliable, and secure communications that take advantage of WAN and LAN.  With IP telephony lines like the Cisco Analog Telephone Adaptor (ATA) products which are standards-based and designed for enterprise and SMB environments, theVG200 series that supports existing traditional analog devices, and the 7900 Series that provides superior audio quality and advanced services, Cisco has been a leader in IP telephony for years. While they’ve excelled in advanced IP telephony hardware, Cisco has always relied on existing VoIP technology to make their devices work. Skype developed a technology superior to the standard telephone network. Using Skype, individuals can place voice and video calls over the Internet, calling others free of charge and connecting with land lines or mobile devices at considerably low rates.

Cisco’s interest in Skype is no surprise. Recently, the computer networking hardware company has begun to reach into software services, tablet computers, and video-conferencing technologies as well as digital video recorders with last year’s purchase of Pure Digital Technologies.

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