Cisco to Unveil Skype Video Solution?

About a month ago, on the heels of Skype’s IPO announcement, the industry was a buzz with rumors that Cisco was in talks to purchase Skype. Birthed by the ever in tune sleuth’s at TechCrunch the rumor had some legs, getting play from all of the major tech sources and even the likes of the Wall Street.

With all of the synergies between the two companies an acquisition seemed plausible, but when news surfaced as to the valuation Skype was looking for, an acquisition seemed unlikely.

In the end most chalked it up to mere speculation. Including myself.

But then I came across this Retuers piece and it got me thinking that maybe there was something to the Cisco – Skype rumors.

In the piece it mentions that next week Cisco will be unveiling a new consumer product. The event invite (below) features smiling faces and the tagline, “Let’s get together” leading one to believe Cisco is set to announce a new video product.

Could it be one designed to work with Skype? Skype cooperation with Lifesize last year was met with much fan fare.

With both companies looking to reap the benefits from the growing interest in video calling from consumers and prosumers alike it’s not that far of a stretch.

Given Cisco’s purchases of Flip (handheld video), Scientific Atlanta (set top boxes) and Tandberg, they’ve got all the ingredients to produce one heck of a home and small office video telepresence solution.

Except for the underlying transport mechanism. Something that Skype can deliver today.

Rumors around the announcement have this soon-to-be-announced Cisco device retailing for around $500 which would make it a disruptive video/telepresence solution for the small business and still within reach of tech savvy consumers.

And to boot, an impactful partnership with Cisco could be just the type of juice Skype needs to gain additional investor confidence as they prepare for their public offering.