Report: Cisco Aims To Sell NDS Video Software Unit

Cisco Systems is looking for a buyer for its NDS video software unit, according to a Bloomberg report, as the company continues to refocus its efforts on the growing market for software applications and solutions sold on a recurring revenue basis.

The San Jose, Calif., networking giant has begun soliciting offers for NDS, Bloomberg said, citing sources close to the process. The company acquired NDS in 2012 for about $5 billion.

Selling the NDS business would be another step in Cisco's shift away from the expensive hardware and proprietary software that has fueled its growth over the last generation and toward software applications and services sold on a subscription basis.

[Related: Partners: Cisco Must Immediately Address BroadSoft Channel Concerns]

A company spokesman declined to comment this morning. Cisco is holding its annual partner conference, Cisco Partner Summit, in Dallas this week.

In the first quarter of its 2016 fiscal year, Cisco sold its Service Provider Video Connected Devices business. In the second quarter of 2016, the company sold its Service Provider Video CPE business. NDS is also part of Cisco's Service Provider Video business and sells products that send interactive content to televisions, mobile phones and other devices.

The drive to sell off NDS comes barely a week after Cisco said it would acquire unified communications player BroadSoft for $1.9 billion. That move set off alarms among solution providers who fear the deal makes Cisco a competitor to partners who have invested heavily in hosted voice practices.

Last week, Cisco and Google unveiled a hybrid cloud partnership that gives Cisco a seamless bridge to next-generation public cloud technologies including the Kubernetes container orchestration platform.

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