"Cisco Israel plans to move to new headquarters with space for twice the number of employees within three years. It’s hard for me to believe we’ll be able to fill so many positions without acquiring local start-ups," said Cisco Israel marketing manager Gadi Drutin. The company currently employs 70.
According to Drutin, Cisco scouts companies with solutions in "everything related to communications" - cable, broadband communications, Internet, IP telephony, and data security. XaCCT, noted by "Data Communications" magazine as one of this year’s most promising start-ups, works, according to Drutin, "very close to Cisco. I don’t know what will happen with XaCCT, but anything could happen."
Concerning a second start-up chosen by the magazine, Allot, Drutin said that the company’s technology competes with that of CLASS Data, already bought out by Cisco. Therefore, in his opinion, Allot will not be acquired by Cisco. "I am not a prophet and I certainly cannot speak for Cisco itself. That is my assessment," he stated.
The remarks were made after Cisco president John Chambers told the French newspaper "La Tribune" that Cisco plans to acquire five to fifteen companies in 1999. Chambers said the company is particularly interested in video and audio transmission technologies.
This year, Cisco purchased start-up CLASS Data for $50 million in stock. This was Cisco’s first acquisition outside the US or even outside Silicon Valley. "Until then, Cisco’s approach was that you primarily buy people, and therefore you need them close at hand. However, after Cisco established a development center in Israel, its only one outside the US, the company felt it was also possible to make acquisitions in Israel"
Published by Israel's Business Arena December 16, 1998