Reshma Kapadia
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.
"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.