The news is already everywhere that Cisco (CSCO) is buying web videoconferencing company Webex (WEBX) for $3.2 billion. Webex shares are up 22% to  $56.50 on the news.

But, how good is the Webex technology? Webex is not really growing very fast for a successful company. Revenue in 2006 was $380 million compared to $308 million in 2005. Net income was down slightly to $48.6 million from $53 million in 2005.

TechCrunch makes the observation that Webex software is "expensive and bulky". The tech news site also points out that Webex has a number of competitors, many with better products.

Cisco is paying a big multiple for a company that may not have the best products in its field.

Douglas A. McIntyre can be reached at douglasamcintyre@247wallst.com. He does not own securities in companies that he writes about.