Cisco, Pelco Team Up

Cisco Systems Inc. (CSCO - Analyst Report) recently signed a strategic technology agreement with Schneider Electric’s Pelco unit. The company will initially co-brand Pelco’s high-definition Internet Protocol (IP) video security cameras that utilize its patented Sarix technology.

The Sarix technology provides full-frame-rate video, H.264 compression, advanced low-light performance, embedded analytics and auto focus while facilitating easy installation. The co-branded cameras will be made available to Cisco Authorized Technology Providers by the end of this year.

Some industry observers believed that releasing the product to Cisco’s dealer channel would directly pit it against Pelco’s channel. However, Pelco has said that since the two companies focus on different segments of the market, there would be minimal overlap. Cisco is more concerned with large network installations, where Pelco cameras have a limited presence. Moreover, Pelco dealers would continue to operate on conditions that differed from the dealers of the co-branded line.

The companies will continue to collaborate on more advanced cameras to gradually include embedded networking features, which are Cisco’s specialty. However, these co-developed cameras are not likely to hit the market before 2010.

In 2008, Pelco joined the industrial solution category of Cisco’s technology developer program. Interoperability testing between its Spectra IV IP and IP110 Series cameras and the Cisco 1520 Wi-Fi Mesh Access Point under the plan has been completed.

Some analysts are of the opinion that Cisco could be considering the acquisition of Pelco. It is believed that an acquisition would expand infrastructure collaboration, with their cameras reaching a larger section of the market.

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