Cisco announced yesterday that it would purchase Starent networks for 2.9 billion making it one of the bigger targets in Cisco’s acquistion history.
What this Cisco deal means for you is that there is presumably a growth trend in the wireless industry. Cisco sees this trend growing and wants to be sure that will be able to capitalize on a theme Jim Cramer calls the mobile tsunami.
The mobile tsunami is a theme Jim Cramer has been talking about for a while. Apple demonstrated their wild success with the iPhone. Nokia, Mortorola, Research in Motion, Palm and even Google is entering the competiton for market share in this hotly contested smartphone market.
After hardware on phones become standardized, it should be a software, user interface (UI) competition. It would be hard to figure out which of these handheld device makers will dominate in the next 5, 10 and beyond years. Let’s focus on more probable ideas which are:
1. Smartphones need integrated chipsets ( think semiconductors)
2. Smartphones need ever growing hard-drive space which will probably include solid state disk (ssd) technology
3. Smartphones need a wireless carrier who has bandwidth in this upcoming mobile demand. (think AT&T, Verizon, Vodaphone.
These three ideas provide a fertile hunting ground for investors that want to position themselves for the upcoming mobile boom.
Link to businessweek article:
http://www.businessweek.com/the_thread/techbeat/archives/2009/10/with_starent_ac_1.html
