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Another buy-out today, this time of ExtendMedia (news, site) by Cisco for an undisclosed sum that will give Cisco (news, site ) a video content management platform enabling it to offer service providers the ability to provide video content through monetization for pay media and advertising.

There’s not a lot of information being provided about this deal. When it finally closes in the first half of Cisco’s 2011 fiscal year, it will be integrated into Cisco’s Service Provider Video Technology Group along with both the technical and sales staff.

Cisco and the Cius Tablet

As to why it bought ExtendMedia it hasn’t said, but it has been clear for some time that Cisco does need video services, particularly now that it has promised to bring out its new iPad challenger Cius, also in 2011.

Looking at the features of Cius, it might be possible to extrapolate some kind of reason behind this acquisition. Amongst the features are:

  • HD video (720p) with Cisco TelePresence solution interoperability
  • 7” diagonal, high-resolution color screen with contact-based touch targets
  • HD Soundstation supports Bluetooth and USB peripherals
  • HD audio with wideband support

So what you have here is a lot of technology that just loves to work with video, and now with this acquisition there is also a video management platform.

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The Cius Tablet

Mobility and Video

Add to that comments from Enrique Rodriguez, GM of Cisco's Service Provider Video Technology Group:

As the video market transitions and consumers expect multi-screen engagement, service providers are enhancing their infrastructure to manage and deliver video to any device while providing a rich user experience,” he said.

Cisco has just announced Cius and now the GM of their video unit says they are enhancing their video delivery abilities to deliver them “to any device”.

Furthermore, the acquisition of ExtendMedia will also provide Cisco with the ability to provide interactive and personalized experiences for users as well as optimize the video quality.

Mobile devices are becoming an ever bigger part of doing business, with video conferencing as prevalent as voice or text messaging.

Companies that can supply that will be a good deal more appealing to enterprises. With Cius combined with new ExtendMedia video content management abilities, Cisco will be one of the real players in this space. Assuming everything goes to plan.