Cisco Systems Inc.
) recently announced that it has acquired a start-up company
ThinkSmart Technologies, which develops location analysis solutions
using Wi-Fi technology. The terms of the deal were not
Cork, Ireland-based ThinkSmart is a software company that
enhances a wireless network infrastructure by providing location
analytics to service providers and enterprise customers. The
software provided by the company enables the collection of
information on movement within a venue, including the time of day,
traffic patterns and the length of time a user spends in a
particular area. This data helps to optimize business processes and
helps in better time management.
Upon the completion of the deal, ThinkSmart will be integrated
within Cisco Mobility Services Engine (MSE) and join Cisco's
Wireless Networking Group. The deal will allow the company to
expand and differentiate its offerings with regard to networking
infrastructure. The acquisition will enable Cisco to improve
customer experience, ensure cost savings and thereby generate
Management also stated that ThinkSmart's specialized Wi-Fi
network and its analytics capabilities can help improve customer
experience at public places such as retail locations, hotels and
Cisco Systems is a leading provider of IP-based networking and
other products. Although Cisco is taking steps to lower its cost
structure by reducing headcount, it is not ignoring growth
opportunities. The company's fourth-quarter earnings beat the Zacks
Consensus Estimate by 3 cents and revenue was up 4.4% from the
Cisco is no doubt the networking leader, but competitors like
Hewlett Packard Company
) are gradually picking up market share.
Cisco carries a Zacks #2 Rank, implying a Buy rating over the
next one to three months.
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