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Cisco Announces Intent to Acquire SolveDirect

The network is emerging as the central nervous system for business in today’s hyper-connected world. As a result, it will be expected that people, things and sources of data are all connected and communicating with each other in real time. Today, I am pleased to announce Cisco’s intent to acquire SolveDirect, a privately held company headquartered in Vienna, Austria that provides innovative, cloud-delivered services management integration software and services.

The move towards multi-sourcing and cloud services is accelerating the development of large ecosystems of companies – from enterprise IT and manufacturing, to SaaS providers – that need to share data in a secure and scalable way. Most of the interactions between these service partners today require manual effort, growing cost and complexity for an organization as their number of service partners grows. SolveDirect’s cloud-based solutions offer enterprises and service providers a flexible way to integrate with service partners, and automate sharing of processes, data, and workflows in real-time by eliminating manual practices and bottlenecks, driving significant operational efficiencies. SolveDirect’s capabilities will enable Cisco to extend our portfolio of smart and connected IT services to our global ecosystem of customers, partners and resellers.

Acquisitions and investments are a key part of Cisco’s build, buy and partner innovation strategy. The SolveDirect acquisition aligns to Cisco’s goal of developing and delivering innovative solutions that streamline data and workflows across a unified network. The SolveDirect team will join the Cisco Services team, under the leadership of Mala Anand, senior vice president, Cisco Services Platforms Group. Under the terms of the agreement, Cisco will acquire all shares of SolveDirect. The acquisition is subject to various standard closing conditions and is expected to be complete in the fourth quarter of Cisco’s fiscal year 2013.

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Cisco Announces Intent to Acquire Intucell

Today, I am pleased to announce Cisco’s intent to acquire Intucell, a privately held company headquartered in Ra’anana, Israel for $475 million in cash and employee retention incentives. Intucell provides software platforms for Self-Optimized Network (SON) that support mobile carrier networks worldwide.

This acquisition will allow Cisco to extend network intelligence and tightly align different software elements across our product portfolio. It also reinforces our commitment to service provider customers and strengthens our expertise in mobility.  In addition, the acquisition of Intucell furthers our long-standing commitment to cutting-edge innovation based in Israel.

The proliferation of connected mobile devices, faster network speeds, and growing demand for high-bandwidth applications and services are driving greater network traffic and complexity.  As mobile service providers continue to face increased end-user demand, the need to dynamically manage network bandwidth, usage and services is increasing. Intucell’s SON software platform addresses these challenges by examining the network, identifying issues, and intelligently managing network traffic in real time.  This capability brings enormous value to service providers and their customers.

The Intucell team’s deep expertise in software, radio management and optimization technologies have made it a global leader in solving some of the most complex challenges faced by mobile service providers.

Intucell’s product portfolio will be integrated into our Service Provider Mobility Group. The team will report into the Software and Applications Group led by Shailesh Shukla.

 

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Cisco Announces Intent to Acquire BroadHop

With global IP traffic projected to increase threefold over the next five years – after having increased eightfold over the past five years – policy control and services creation at large scale has never been more vital for mobile and fixed communications service providers.

Cisco plans to add a critical piece of service creation technology to its portfolio today by announcing its intent to acquire Denver, Colorado-based BroadHop, a provider of next-generation policy control and service management technology for carrier networks worldwide. BroadHop’s widely deployed policy control solutions for mobile and fixed networks will be integrated into Cisco’s Service Provider Mobility Group to provide service providers the flexibility to control, monetize and personalize the types of service they choose, on any network.

How does this benefit customers and end-users directly? A service provider can integrate BroadHop technology to enable end-users to purchase customized premium service packages. For example, if a consumer desires premium on-demand streaming, BroadHop technology allows the service provider to add value to and monetize this particular service. In return, the user is granted a high level of service and premium bandwidth to ensure the best possible experience.

Cisco’s acquisition of BroadHop is also an evolutionary step in supporting Cisco’s Open Network Environment (ONE) for extensible network programmability. This policy infrastructure represents the baseline to monetization of the network and will enable Cisco to develop software services that empower network operators to deliver revenue-generating services, while enhancing the end-user experience.

BroadHop has been a key service provider Wi-Fi partner for Cisco, and this acquisition is a natural extension of our collaboration as we continue to engage tier-one global service providers with our combined technologies. This acquisition reinforces Cisco’s commitment to service providers by enabling policy control and service management across mobile, fixed and wireless broadband networks and adds value by driving the mobility network architecture to the next level.

Acquisitions and investments are a key part of Cisco’s build, buy and partner innovation framework and supports one of Cisco’s five foundational priorities to lead the market in networking across all customer segments. The BroadHop acquisition is well-aligned to Cisco’s goals of developing and delivering innovative network and software technologies, while also cultivating top talent. The BroadHop team will be integrated into Cisco’s Service Provider Networking Group, reporting to Shailesh Shukla, vice president and general manager of the company’s Software and Applications Group.

The BroadHop acquisition reinforces Cisco’s commitment to developing services that enable our service provider partners to succeed across mobile, fixed and converged networks, while allowing us to continue to lead and define important transitions in networking.

 

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Cisco Announces Intent to Acquire Meraki

Cisco is dedicated to innovation as the path to growth as well as the key to sustaining our market leadership position. Our build, buy, partner strategy has always been driven by customer need and on capturing market transitions.

Today, we are excited to announce an important acquisition that addresses the rapidly occurring shift to cloud networking as a key part of Cisco’s overall strategy. San Francisco-based Meraki, a leader in cloud networking, offers customers on-premise networking solutions that are centrally managed from the cloud.

When compared to other opportunities, Meraki built a unique cloud-based business from the ground up that addresses the broader networking shift towards cloud, not just within wireless. Meraki created a massively scalable architecture that offers easy to deploy, secure, and manage networks. They didn’t obsess about the number of features, but instead focused on those that could be simplified or removed entirely.  Customers liked what they saw, and today they are supporting 20,000 customers and hundreds of thousands of network devices on their cloud platform. This has resulted in a business that is growing exponentially with great margins.

Talent is one of the most important components of every Cisco acquisition. Meraki’s co-founders, Sanjit, John and Hans, are true visionaries and leaders. The founders began with the technology, and then experimented with different markets -- pivoting from a research project at MIT to a municipal Wi-Fi company to a leading cloud networking company focused on the midmarket. Along the way, they recruited experts and created a culture in San Francisco that attracted great talent. They have focused this team around a business model that combines a rapid development methodology tightly linked to a go to market engine.

During the course of our interactions, we quickly realized that Cisco and Meraki’s shared a vision of accelerating the adoption of cloud within networking as a means to simplify operations and enable new network applications. Sequoia Capital, an early investor in Cisco, also recognized the strength of the people at Meraki, and it’s great to see the technology ecosystem come full circle.

The Meraki acquisition is another example of Cisco’s focus on accelerating our adoption of software based business models. In fact, Cisco’s last seven acquisitions (Cloupia, vCider, ThinkSmart, Virtuata, Truviso, ClearAccess and NDS) have all been software companies. Cisco’s strategy is to take Meraki’s cloud platform and business model and scale this within Cisco as our new Cloud Networking Group, led by Sanjit, John, and Hans.

I am delighted to welcome the Meraki team to the Cisco family, and look forward to a prosperous and industry-transforming future together.

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Cisco Acquires vCider

Cisco is pleased to announce that it has acquired privately-held vCider. Based in Mountain View, California, vCider has expertise in the development of virtual network overlay technology for secure data center infrastructure. vCider will be integrated into Cisco’s Cloud Computing organization, reporting to Lew Tucker, chief technology officer, Cloud Computing, and will play an important role in the Cisco Open Network Environment (ONE) strategy, particularly in support of OpenStack.

OpenStack is a key pillar of Cisco’s open, multi-hypervisor, multi-stack Cloud computing strategy. Cisco joined OpenStack 18 months ago and has been a significant contributor to the OpenStack Quantum API track ever since.

With Quantum becoming a core OpenStack service, it’s clear that programmable networking is quickly becoming an important component in large scale, multi-tenant, cloud computing environments. Cisco’s Quantum plug-in is designed to give application developers increased programmability of both virtual and physical networks linking the world of cloud computing to the advanced capabilities of Cisco’s Open Networking Environment (ONE).

So where does vCider come in? The vCider team has created a multi-tenant distributed virtual network controller. vCider’s code and technology will be integrated into our current development efforts of the OpenStack Quantum network service.

Mergers and acquisitions along with investments remain a key part of Cisco’s build, buy, and partner innovation framework and supports our strategy of providing best-in-class solutions for our customers. The vCider acquisition is well-aligned to our strategic goals to develop innovative virtualization/cloud technologies, while also cultivating top talent.

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