It’s said that in slowing economies, companies build value, not go on shopping sprees. So, when Cisco (makers of computer servers and routers of most Internet traffic) decided to pony up half a billion dollars for Pure Digital Corporation, the idea seems to run counter to conventional wisdom. Unless, Cisco is looking to expand their range of services to include the consumer market. And with Pure Digital enjoying a great 24 months with sales of pocket camcorders it can also reveal that Cisco believes that video will be a driving for on the Internet in the future.

The Flip is a pocket sized camcorder that one may want to use for capturing every day moments while out and about. Costing between $130 and $230, it can capture up to 60 minutes of even high definition video on it’s on board flash memory and transfer that video to a PC or even upload to YouTube with its jack-knife like USB plug. On board software can also allow the user to put together a video presentation without investing in any more costly editing software.

Speculation is ripe that Cisco may be looking to take The Flip further into internet connectivity by adding WiFi or even 4G wireless connectivity. This would be a boon as no other camcorder has this feature to date, although many digital still camera models have begun incorporating WiFi access.

Hat Tip – C’Net