Cisco Touts A Killer App: Online Video

In March, Cisco (NasdaqGS:CSCO - News) offered to pay $590 million for Pure Digital Technologies, makers of the Flip mini camcorder, designed to make sharing video online easier.

"Video killed the radio star" the old song goes. And now, online video could make a killing for network gear makers over the next few years.

When IBD recently asked Cisco Systems CEO John Chambers to offer some predictions about the future of technology, the networking pioneer didn't mince words.

"If I had to make one big bet on the future, I would bet on video," Chambers replied. "I think video is a major killer application, and the combination of video and networking will be a huge driver for how we will communicate in the future."

"Video services (Hulu, YouTube, CinemaNow, etc.) are offering consumers even more choice for video consumption, and network traffic growth could mean more network infrastructure will be required," Sue wrote.

Web-based entertainment and online video sites such as Google's (NasdaqGS:GOOG - News) YouTube are creating a big spike in demand for network bandwidth. Total time spent watching online videos shot up 49% last month over the year before, to 188.7 minutes per user, according to Nielsen Online.

READ THE ENTIRE STORY by J. Bonasia - http://news.yahoo.com/s/ibd/20090616/bs_ibd_ibd/20090616tech

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