The shift is on ...

In another step from its roots selling telecommunications hardware, Cisco Systems Inc. has agreed to buy videoconferencing company WebEx Communications Inc. for $3.2 billion in cash.

This is being covered widely ... some people are still misreading it as a move into content. A case in point, from the Chicago Tribune:

The San Jose-based company has recently made a number of acquisitions branching out from its core business of supplying networking gear and into communications, social networking and other areas that help drive traffic over the network and increase demand for its core equipment.

Cisco will tell the street whatever it thinks it wants to hear. But this notion of driving demand for routers is a total misreading of the strategy. These moves are really about context. As Paul Saffo said 13 years ago:

It is not content but context that will matter most a decade or so from now. The scarce resource will not be stuff, but point of view.

The future belongs to neither the conduit or content players, but those who control the filtering, searching, and sense-making tools we will rely on to navigate through the expanses of cyberspace.

So, you see, Cisco is getting into the point of view business.

Other coverage:

... furthering its push beyond its core market for networking gear and into business communications ...

Cisco's takeover of Scientific-Atlanta was intended to increase its ability to deliver content directly to the homes of consumers.

... acquired IronPort Systems, a maker of antispam and antivirus security products.

"As collaboration in the workplace becomes increasingly important, companies are looking for rich communications tools to help them work more effectively and efficiently," Charles H. Giancarlo, Cisco's chief development officer, said in a statement. "The combination of Cisco and WebEx will deliver compelling solutions accelerating this next wave of business communications."

So what's WebEx got that Cisco wants? It aids Cisco in a battle with Microsoft in the growing market for what's known as unified communications ...

They are battling for control of enterprise communications.

... analysts say IBM likely was interested, too.

Cisco may be looking to acquire companies that specialize in customer relationship management or mobile communications.

Cisco to buy WebEx for $3.2 billion