Cisco buys Tandberg for $3 billions

Cisco Systems announced that it has agreed to acquire Norwegian videoconference equipment maker Tandberg for $3 billions in cash. Cisco competed with Tandberg on the high end of the videoconferencing market (in the telepresence niche), but on the smb videoconferencing  market, they had no chance to reach the Norwegian company. So they decided to buy the rival and its 40% market share. In result Cisco becomes the leading vendor of the video systems that range from small "videophones" to full conference-room setups. Number two in this space, US based Polycom has 34% market share. By the way, it's rumored that Polycom after that has all chances to be acquired by another IT giant, Hewlett-Packard.