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Cisco and Microsoft Battle Over Web Conferencing

The battle between network giant Cisco and software colossus Microsoft over video and Web conferencing has been brewing for a while. Last fall, for instance, Microsoft announced plans to build a mobile video conferencing device. That same week Cisco jumped in, announcing a product that increases the frame rates of Web video so we won't get a headache watching herky-jerky video.

Now Cisco is really getting serious, vastly overpaying for the privilege of owning WebEx, which competes with Microsoft's Live Meeting.

WebEx made less than $50 million in profit last year, but somehow the math whizzes at Cisco reckon the company is worth north of $3 billion.

That's, what, 60 times earnings? I hope WebEx has some hot stuff in its labs!

Which do you like better, WebEx or Live Meeting? Let us know at dbarney@redmondmag.com.

Posted by Doug Barney on 03/19/2007 at 1:15 PM


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