Cisco Acquires Email and Calendar Software-Maker PostPath

August 27th, 2008 at 12:00 am

cisco postpath acquisition

Cisco Systems announced yesterday that it has finalized the deal to acquire e-mail and calendar software-maker PostPath for $215 million.

PostPath is a software maker specializing in e-mail and calendars. They have an Ajax client that runs a Linux-based e-mail system in the browser. PostPath also runs on mobile platforms including the iPhone. To give you an idea of what it really is, think Zimbra (which was acquired by Yahoo for $350 million).

"With PostPath’s software, Cisco will extend the e-mail and calendar functionality of its flexible software-as-a-service (SaaS)-based collaborative platform that includes instant messaging, voice, video, data, document management and Web 2.0 applications."

Cisco’s acquisition of PostPath is a strategic move that complements its acquisition of WebEx. The integration of PostPath into the WebEx collaboration system puts Cisco in direct competition with Microsoft Exchange.

"The acquisition of PostPath complements our strategy to develop an integrated collaboration platform designed for how we work today and into the future, providing real productivity gains and a more satisfying user experience."

However, this acquisition as well as the $3.4 billion for WebEx still does not change Cisco’s core business as a hardware manufacturer of switches and routers. Nonetheless, Microsoft beware.