Cisco makes optical networking play

Ciscohasmade its secondacquisitionthis week after putting down $99m (£69.38m) in cash and retention incentives to acquire digital signalprocessingsolutions provider CoreOptics. US-based CoreOptics, which has substantial European operations, specialises in transmission technology for high-s

Cisco has made its second acquisition this week after putting down $99m (£69.38m) in cash and retention incentives to acquire digital signal processing solutions provider CoreOptics.

US-based CoreOptics, which has substantial European operations, specialises in transmission technology for high-speed optical networking applications.

Cisco plans to fold CoreOptics' technology into its Service Provider Access and Transport Technology Group to equip its service provider customers with faster, higher-capacity networks to meet increasing demands from video, mobility and cloud applications.

The unit's vice president and general manager, Surya Panditi, said Cisco was "focused on continuing to deliver an industry-leading portfolio of routing, switching and optical transport systems that enable our service provider customers to better ... manage tight capital and operating budgets while accommodating the tremendous growth in network traffic."

Research carried out for Cisco has suggested that global IP traffic will grow fivefold from 2008 to 2013, with a 40% CAGR.

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