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Cisco Makes $200M Bet on P-Cube

Cisco Systems Inc. is expanding its presence in the Internet-protocol space, buying P-Cube, a developer of IP service-control platforms, for $200 million.

P-Cube's software allows broadband-service providers to identify potential subscribers, classify applications, improve service performance and charge for IP services without infrastructure upgrades.

Cisco said the acquisition will allow it to offer service providers additional capabilities to control and manage advanced IP services, such as voice over IP, interactive gaming, video-on-demand and peer-to-peer applications.

"Application and subscriber-aware technology solutions like P-Cube's provide the ability to differentiate and control new content-based data services," said Mike Volpi, senior vice president and general manager of the routing-technology group at Cisco.

Cisco said P-Cube's staff will report to Pankaj Patel, VP and GM of Cisco's broadband-edge and midrange-routing business unit.