& cplSiteName &

Does Cisco Need Nicira?

Craig Matsumoto
8/14/2012
50%
50%

Now we know what made Nicira Networks Inc. worth more than US$1 billion: Apparently Cisco Systems Inc. (Nasdaq: CSCO) wanted the company, too.

Bloomberg reported Monday night that Cisco made a failed bid for the software-defined networking (SDN) company.

VMware Inc. (NYSE: VMW) announced a $1.26 billion deal for Nicira on July 23.

Why this matters
Bloomberg mentions Nicira in the larger context of the toughening competition Cisco faces. Systems vendors Arista Networks Inc. and Cyan Inc. also get cited as startups that offer alternatives to Cisco's equipment.

Cisco is trying to convince the world that it takes SDN seriously while also arguing that SDN -- which theoretically could create lower-cost alternatives to traditional routing -- isn't a threat. Cisco CTO Padmasree Warrior summarized the company's position in a blog recently. Analyst Tom Nolle of CIMI Corp. noted that the tone sounded defensive to him.

Cisco is nurturing its own SDN startup, the spin-in company Insieme ("spin-in" meaning Cisco intends to acquire it). But an interest in Nicira might suggest that Cisco sees some value in that company's concept of overlay networks.

For more



— Craig Matsumoto, Managing Editor, Light Reading

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Soupafly
50%
50%
Soupafly,
User Rank: Light Sabre
12/5/2012 | 5:23:54 PM
re: Does Cisco Need Nicira?


Craig, your writing like a newbie.


What about;


a) IPR/ Patents around SDN & Overlay networking?


b) Time-to-market & strategic advantage?


c) Subject matter expertise of the Nicira staff?


All of the above would be more than enough to justify why Cisco should do the deal.


Frankly, I am suprised at John & his team here. Time & again John & his boys have strategically moved to take out competitors or achieve a TTM advantage/ tech edge.


They should have outbid VMware & sent out a clear message that they mean business in the SDN space. This is a dropped ball & a slapped wrist for John Chambers. Maybe letting Ned Hooper leave & promoting Padmasree was a mistake?


Its too early to make the call on Ned & Padmasree, especially when you dont have all the facts. However, Cisco had a deal construction & execution team that made arnie's famous robot blush! They were feared & respected under Ned. Can Padmasree deliver the same intensity & capability?


Given the huge cash stockpile they have offshore... this was a complete no-brainer. Hence my comments.


I am also 100% confident that;


1) Google is working to help & further develop the open source SDN movement & has a team working to contribute towards said objective.


2) Amazon is going to be interested in this area. They have BIG plans to be 1 of the global content hubs. SDN smarts would fit very neatly into a CDN story and that wider strategy.


(The is in bold because this is a 800lb gorilla game, imho. Only the biggest global players will survive because they will have the leverage in networking, customer relationships & content/exclusivity deals.)


Insieme; Putting all your faith in your spin-in is a risky strategy & not 1 that Cisco has ever deployed. They are smarter than that. So I don't think that blocked, stopped or significantly influenced this deal. I just think without Ned's focus & networking finesse they were out-maneuvered by the VMWare team.


 


 

Pete Baldwin
50%
50%
Pete Baldwin,
User Rank: Light Beer
12/5/2012 | 5:23:54 PM
re: Does Cisco Need Nicira?


I guess another reason for an acqusition would be to take the technology off the market.


That would have been an expensive proposition, though, and it's not as if it would have delayed SDN and overlay networks.

From The Founder
Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Interviews
BT's McRae Sheds Light on 4K Strategy

5|25|17   |   4:45   |   (0) comments


At Light Reading's Big Communications Event 2017 in Austin, Texas, BT Group's Chief Network Architect Neil McRae talks about what it took for BT to broadcast live sports in 4K. Catch up with all our BCE coverage at http://www.lightreading.com/bce.asp.
From the Founder
How the NIA Aims to Advance NFV

5|25|17   |   08:07   |   (0) comments


Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
LRTV Custom TV
Better Solutions That Address Growing Scale

5|25|17   |     |   (0) comments


For Comcast, the X1 rollout and 17-fold increases in broadband speeds in the past 16 years are among factors driving the need for Energy 2020 solutions that reduce cost and consumption, says Mark Hess.
LRTV Custom TV
Ethernity Network Delivers Instant Offloading of Network Functions With All-Programmable Intelligent NIC

5|25|17   |     |   (0) comments


David Levi, CEO of Ethernity Networks, explains that programmability of the hardware makes the company's All-Programmable Intelligent NIC uniquely beneficial for communications service providers that need advanced data appliances with agile support of virtualization. Utilizing the company's patented network processing technology, Ethernity offers data path ...
LRTV Documentaries
BCE 2017: Vodafone Gets Obsessed With Cloud-Native

5|25|17   |     |   (0) comments


Vodafone's Matt Beal updates us on Project Ocean and explains why simple virtualization isn't enough of a goal for network transformation. Catch up with other BCE 2017 keynotes and news at http://www.lightreading.com/bce.asp.
LRTV Documentaries
BCE 2017: Intel's Take on Network Transformation

5|24|17   |     |   (0) comments


In this BCE 2017 keynote, Lynn Comp discusses Intel's vision for areas such as analytics, automation and service assurance. For more videos and BCE coverage, see http://www.lightreading.com/bce.asp.
LRTV Documentaries
Order From Chaos: The Steve Saunders BCE Keynote

5|24|17   |   17:27   |   (0) comments


Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability testing.
Think of this as the video sequel to the recent columns he's written about NFV and the prospect of a telecom app store. (See

LRTV Documentaries
Service Provider Panel: Partnering in the Digital Era

5|22|17   |     |   (0) comments


Coopetition has always been part of telecom, but the ecosphere now includes data centers, vendors, apps developers, cloud service providers and Internet content providers. This BCE 2017 panel explores the new attitudes among network operators as to the value and variety of ...
LRTV Interviews
Site Demo: AT&T's IoT Flow Platform

5|19|17   |   04:25   |   (0) comments


At AT&T's R&D center in Tel Aviv, Israel, project leader Eyal Segev talks about the operator's Flow platform and how it helps to prototype IoT applications.
LRTV Documentaries
Agent of Change: A Q&A With AT&T's John Donovan

5|18|17   |     |   (0) comments


Carol Wilson talks with the man leading AT&T's transformation efforts about the challenge of change.
LRTV Documentaries
BCE Service Provider Panel: The New Business Realities

5|18|17   |     |   (0) comments


For virtualization to happen, the telecom industry first has to grapple with key functional aspects of SDN and NFV that need to be universal, such as onboarding of virtualized network functions and federation of software-defined networks.
LRTV Interviews
BCE Service Provider Keynote: CenturyLink

5|16|17   |   22:32   |   (0) comments


Aamir Hussain leads the Product Development and Technology organization at CenturyLink, which includes the company's information technology function. He is an experienced senior technology executive with more than 25 years of proven success in the implementation of global technology operations, operationalization of complex technology, infrastructures and business ...
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Cities Clamor for More Clout at FCC
Mari Silbey, Senior Editor, Cable/Video, 5/23/2017
What's Blocking 4K TV Today
Alan Breznick, Cable/Video Practice Leader, Light Reading, 5/22/2017
Sonus & Genband Finally Combine to Form $745M Company
Dan Jones, Mobile Editor, 5/23/2017
Apple Looking to Cook 5G Test Devices
Dan Jones, Mobile Editor, 5/24/2017
Fright Wigs & Cocktails: BCE 2017 in Pics
Mitch Wagner, Editor, Enterprise Cloud, 5/19/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
Animals with Phones
What Brogrammers Look Like to the Rest of Us Click Here
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.