Cisco hopes this will be its next killer business

Cisco hopes this will be its next killer Business:

Cisco watching a hot technology sector for other acquisitionsCisco will push safety.The technology giant revealed in its fiscal fourth quarter earnings call this week that is exploring for new security companies to buy.In an interview with Fortune, Cisco CSCO 1.15% CFO Kelly Kramer said the company has "very vocal" to expand beyond its roots in selling networking equipment to build a company's IT security. In light of the large cuts of Sony Pictures Entertainment, Target and JP Morgan Chase, companies put safety at the top of their priority list, said Kramer.In recent years, Cisco has already acquired a number of security companies, and is not going to slow down anytime soon. Two notable acquisitions during the day shopping Open DNS include Internet security company for $ 635 million in June and security vendor Source fire for a whopping $ 2.7 billion in 2013.

Cisco watching a hot technology sector for other acquisitions.Cisco will push safety.The technology giant revealed in its fiscal fourth quarter earnings call this week that is exploring for new security companies to buy.In an interview with Fortune, Cisco CSCO 1.15% CFO Kelly Kramer said the company has "very vocal" to expand beyond its roots in selling networking equipment to build a company's IT security. In light of the large cuts of Sony Pictures Entertainment, Target and JP Morgan Chase, companies put safety at the top of their priority list, said Kramer.In recent years, Cisco has already acquired a number of security companies, and is not going to slow down anytime soon. Two notable acquisitions during the day shopping OpenDNS include Internet security company for $ 635 million in June and security vendor Sourcefire for a whopping $ 2.7 billion in 2013.Cisco security AcquistionsSecurity landscape scattered today is "ripe for consolidation," Kramer said. Of course, purchases often come with a high price, considering the exorbitant valuations for major new security companies.From cyber security Tanium currently attracting new funding to be valued at about $ 2.5 billion, Dan Primack of Fortune and Leena Rao said this week. And from illumio network security it has raised $ 100 million in April that valued at $ 1 billion, according to private equity and venture capital research firm Pitchbook.These high valuations do not seem to care about Cisco, however, as Kramer said the company "has achieved the balance to do so." Currently it has $ 60.4 billion in cash and investments.



For now, the safety of total revenue accounts for only a fraction of Cisco. In the fourth quarter, sales of security products was $ 464 million compared to $ 5 billion in traditional switching and routing business of the company, for example. And while Cisco has focused on safety, security business has not exactly been growing like wildfire. Security sales only increased by more than 4% in the fourth quarter of 2015 compared to the same period of 2014.If Cisco wants to make safety an important part of your business, the acquisitions could be a way to get there. Or it could simply be a waste of money as $ acquiring rocker maker Pure Digital cameras in 2009 as part of a failed divert 590 million consumer products. The company also recently sold its set-top box Television Paris-based Technicolor $ 600 million after inheriting the range of its $ 6.9 billion in telecommunications and buying TV maker Scientific Atlanta in 2005.