Cisco Grasps at Video to Keep Growing

When you’ve got to grow a $40 billion-a-year company, sometimes there’s just no way to do it other than to capitalize on fear. In the case of Cisco’s medianet concept, defining a series of networks transporting video, launched today, the company seems to be capitalizing on the supposed fear of online video swallowing the web (this fear is used by carriers to implement bandwidth caps and tiered pricing). Cisco says it is launching a series of products to enable this “medianet,” but really it’s only launching a video processing engine that will transcode videos to allow them to be played on any device. This isn’t that special.

The other “big” medianet announcements are an IPTV customer win, an addendum to the edge router launched last month noting that the router has the ability to add ads to video content and cache that content for faster delivery, and an expansion of Cisco’s telepresence video-conferencing service so it it can be used via satellite.

Cisco has used the increasing amount of video content online to sell more equipment, both in the telecommunications networks and in the home. Cisco (s CSCO) has latched onto video with its visual networking index, telepresence, and it even owns a set-top box maker. To celebrate the launch of sell the new video-focused products, Cisco has added a few new data points from its visual networking index launched last June. The goal is to show how much video traffic is growing and taking over the web.

  • Professional/traditional broadcast video content will become 80% of all Internet video viewed on PCs/laptops by 2012.
  • Traffic associated with user-generated video content will triple from 2008 to 2012.
  • By 2012 more than 4 billion video streams per month will be delivered through Internet-enabled set-top boxes, which include gaming consoles and set to boxes from independent vendors.
  • Global video on demand traffic increased by 2.4 times from 2007 to 2008

Did it work? Are you ready to buy Cisco’s new medianet products yet?