Business is rough now. The only options many have left is, conglomerate or have fingers crossed that there will be a tomorrow. Although, small businesses are the real victims of this recession, we can never be sure on where the big guys are headed. It all depends on one’s capacity to handle and operate.

Cisco System Inc, the largest maker of network equipment, agreed to purchase Pur Digital Technologies Inc. for $590 Million in stock.

Cisco will also pay as much as $15 million in equity incentives to retain Pure Digital workers, according to a statement today. Closely held Pure Digital, backed by venture- capital firms Sequoia Capital and Benchmark Capital, has 102 employees.

Pure Digital’s Flip Video camcorder, which costs $150 to $230, can record up to 60 minutes of video and plugs into personal computers’ USB drives. Users can then e-mail images and upload videos to YouTube and other Web sites. San Jose, California-based Cisco aims to get into technologies that boost Internet traffic, increasing demand for network equipment.

This is really a spin to the company.