Cisco Buys Optical Networking Firm CoreOptics

Cisco has announced plans to acquire signal processing technology maker CoreOptics for $99 million, guaranteeing it entry into the optical networking applications market.

The CoreOptics acquisition follows the take over of MOTO Development Group as Cisco's second acquisition of the week.

The acquisition of CoreOptics will allow Cisco to develop products based on the digital ASIC design, as well as work on the advanced modulation formats and optical systems, applications and network architecture.

Surya Panditi, vice president and general manager of Cisco's Service Provider Access and Transport Technology Group said: “With this acquisition, Cisco reinforces its commitment to continue to invest in its core networking business and to deliver IP next-generation networks at 100 [gigabits per second] and beyond.”

Cisco says acalability will be the key for ISPs. The company believes that global IP traffic will increase fivefold between 2008 and 2013.