Cisco Systems will acquire on-demand video software company Arroyo Video Systems for US$92 million the company said Monday afternoon.

Arroyo will give Cisco a greater range of offerings for video on demand, which allows users of traditional cable television and IPTV to purchase and watch content such as music videos, television shows and feature films, at the place and time of their choosing.

With the addition of Arroyo's innovative software, which offers flexibility in content delivery, service providers will be in a position to serve content how, when and where consumers want it, said Michelangelo A. Volpi, Cisco senior vice president and general manager, routing and service provider technology group.

The buy is Cisco’s second so far this month, having taken a majority stake in data center company Nuovo Systems on Aug. 10.

The industry is quickly evolving from pure video-on demand to anything-on-demand with any content delivered to any end device, Volpi added. Cisco's next generation network strategy offers service providers the ability to make this vision a reality,

Arroyo’s software will be integrated with set-top boxes and equipment from its earlier purchase of Scientific-Atlanta, valued at US$7 billion, which was announced in November 2005 and closed in February this year. Scientific-Atlanta was one of the world’s largest producers of set-top boxes.

The Arroyo deal will close before the end of Cisco’s first fiscal quarter for 2007, which ends Oct. 31, 2006. The acquisition will become part of Cisco Cable and Video Initiatives Group, the company said.