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RealNetworks, Cisco tie-up for streaming media

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CIOL Bureau
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Reshma Kapadia

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NEW YORK: RealNetworks Inc. struck a deal on Monday with Cisco Systems Inc.

that would help widen the distribution of its audio and video broadcasting

technology. Through the pact, Cisco, the world's largest supplier of networking

gear for the Internet, will incorporate the Internet firm's RealSystem Server 8

and RealSystem Proxy 8 audio and video broadcasting technology into its line of

networking products.

It will also help market and sell Seattle-based RealNetworks’ streaming

software, RealSystem iQ, to Internet service and network service providers.

"It's significant for RealNetworks because it's a question of getting

RealSystem iQ adopted by content providers and this is one way to push it

through," said David Bench, analyst at Arnold & S Bleichroeder.

"It gives RealNetworks another reseller out there and obviously Cisco

has a big base of clients. Having Cisco selling your products is absolutely a

positive," said Heath Terry, analyst at Credit Suisse First Boston. The

deal is an example of how companies like RealNetworks are addressing the

slowdown in the enterprise market resulting from the dot-com shakeout and

growing economic uncertainty.

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"When enterprise spending comes back, Real has a brand new channel to

access customers," Terry said. Broadcasting and streaming technology is

becoming increasingly popular as companies shift from simple voice transmissions

to data networks and companies look for ways to deliver streaming video and

other images.

"With this strategic agreement, Cisco and RealNetworks advance the

delivery of the next generation of Internet business applications using digital

media," said Mike Volpi, senior vice president and chief strategy officer

of Cisco Systems.

(C) Reuters Limited 2001.

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