Light Reading
Cloud networking capabilities attract Cisco, which is on a mini M&A spree

Cisco Shells Out $1.2B for Meraki

Ray Le Maistre
LR Mobile News Analysis
Ray Le Maistre, Editor-in-chief
11/19/2012
50%
50%

Only days after unveiling the acquisition of cloud management software vendor Cloupia, Cisco Systems Inc. (Nasdaq: CSCO) has announced a deal to buy "cloud networking" specialist Meraki Networks Inc. for US$1.2 billion in cash. (See Cisco to Buy Meraki and Cisco to Buy Cloupia for Cloud Management .)

Meraki has been developing its centralized, remote management capabilities since 2006 and now has a range of tools and products (Ethernet switches, security devices, Wi-Fi access points) that enables network managers to run their networks using a central, remote (or "cloud") management platform. (See Meraki Intros Cloud-Managed Switches.)

Meraki, which has 330 staff, more than 10,000 customers and an order book currently running at an annual rate of about $100 million, will form the core of Cisco's new Cloud Networking Group once the acquisition is complete. That is expected to happen some time in the next couple of months. According to a letter sent to staff by CEO Sanjit Biswas, Meraki had been planning an IPO but the recent takeover offer from Cisco was too good to turn down. The company had raised more than $80 million from its investors, which include Google (Nasdaq: GOOG), Sequoia Capital and DAG Ventures Management .

Why this matters
The centralized management of networks is the infrastructure and application control model that looks set to dominate in the future, so it makes sense that Cisco would want to maintain its role as a key provider of networking capabilities to enterprises and service providers by acquiring key players in this space.

What's interesting about Meraki, though, is its long-time focus on the remote management of wireless networking capabilities. Those capabilities not only make its technology increasingly relevant in an enterprise world that is grappling with the challenge of mobile security and access rights in the bring-your-own-device (BYOD) age, but make it even more relevant for Cisco as it targets mobile operators with its carrier Wi-Fi and small-cell products.

And given that Cisco has also recently acquired Wi-Fi traffic analyzer startup ThinkSmart, it seems very likely that the networking giant might still be looking to flesh out its wireless management and cloud networking portfolio further with other targeted Service Provider Information Technology (SPIT) acquisitions. (See Cisco Snaps Up Wi-Fi Analytics Startup and Rumor: Cisco Seeks Small-Cells Smarts .)

For more



— Ray Le Maistre, International Managing Editor, Light Reading

(6)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
FastCache
50%
50%
FastCache,
User Rank: Light Beer
12/5/2012 | 5:17:31 PM
re: Cisco Shells Out $1.2B for Meraki


Seems like a strong WiFi offering for the enterprise. Not sure how the competition will be able to respond.  Who will be next to be acquired?

horse of a different color
50%
50%
horse of a different color,
User Rank: Light Beer
12/5/2012 | 5:17:31 PM
re: Cisco Shells Out $1.2B for Meraki


Cisco M&A?  I don't think there has been any mention of "M" in a while.  It's more like A and/or A (Aquisition and/or Absorption)...

joset01
50%
50%
joset01,
User Rank: Light Beer
12/5/2012 | 5:17:29 PM
re: Cisco Shells Out $1.2B for Meraki


As Gabriel Brown suggests Aerohive has some of the same type of tech. Could they be an M&A target for Aruba or others now?

shygye75
50%
50%
shygye75,
User Rank: Light Beer
12/5/2012 | 5:17:29 PM
re: Cisco Shells Out $1.2B for Meraki


Merging with Cisco is like merging with a 20-foot great white.

soldack
50%
50%
soldack,
User Rank: Light Beer
12/5/2012 | 5:17:12 PM
re: Cisco Shells Out $1.2B for Meraki


http://venturebeat.com/2012/09/11/aerohive-funding-ipo/


It looks like Aerohive is a bit smaller but is also looking for an IPO.

dr500
50%
50%
dr500,
User Rank: Light Beer
12/4/2012 | 9:27:36 AM
re: Cisco Shells Out $1.2B for Meraki
Good article !
Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
LRTV Huawei Video Resource Center
The Inaugural Optical Innovation Forum in Nice

9|2|14   |     |   (0) comments


More than 170 attendees from network operators, service providers, analyst firms, and component companies from around the world convened in Nice in June for the inaugural Optical Innovation Forum, co-produced by Huawei and Light Reading.
Wagner’s Ring
Data Centers Drive Telcos Into the Future

8|28|14   |   2:20   |   (2) comments


Data centers are at the heart of key trends driving telecom -- network virtualization, the drive for increased agility, and the need to compete with OTT providers.
LRTV Custom TV
Why SPs Should Consider Cisco's EPN

8|27|14   |   5:40   |   (0) comments


Sultan Dawood from Cisco discusses Cisco's EPN, which enables SPs to build agile and programmable networks delivering new network virtualized services using Cisco's Evolved Services Platform (ESP).
LRTV Huawei Video Resource Center
Huawei’s Showcase @ Big Telecom Event 2014

8|26|14   |   2.56   |   (0) comments


SoftCOM is Huawei's framework for telecom business and network transformation. Haofei Liu, Solution Marketing Manager, Carrier Business Group, Huawei, showcases Huawei's SoftCOM architecture in this video.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of Integrated Solutions on SoftCOM & NFV Monetization

8|26|14   |   4.43   |   (0) comments


Libin Dai, Director of Integrated Solutions, Carrier Business Group, discusses Huawei's SoftCOM and NFV monetization. Huawei believes that NFV monetization should be service-driven rather than network-driven, and that operators should have network transformation, service transformation and a compatible and collaborative ecosystem in place in order to deploy NFV.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of US NFV Lab on CloudEdge & the Future of NFV

8|26|14   |   4.06   |   (0) comments


Sean Chen, Director of US NFV Lab at Huawei, discusses Huawei's new approach to NFV in open collaboration. Huawei believes that through Proof of Concept tests, it could help operators learn and communicate with the industry more effectively. Sean believes that successful implementation of NFV should have its values reaching to end users and discusses how Huawei's ...
LRTV Huawei Video Resource Center
Huawei's Highlights @ Big Telecom Event 2014

8|26|14   |   3.34   |   (0) comments


At the Big Telecom Event in Chicago Huawei showcases its high-level strategy, the SoftCOM architecture, which helps operators reduce the cost of ownership of their network infrastructure and generate additional revenue in the ICT service environment. Huawei showcases over 30 pilot programs from across the globe, focusing on the industry-leading commercial ...
LRTV Custom TV
VeEX – Live from the Show

8|21|14   |   5:58   |   (0) comments


An overview of VeEX Test and Measurement solutions including TX300S multi-service test set with VeExpress cloud-based management system, UX400 universal modular platform supporting 100G testing, and the redesigned RXT modular platform.
LRTV Custom TV
Transitioning CE 2.0 Networks Into the SDN & NFV Era With Telco Systems

8|19|14   |   5:19   |   (0) comments


Telco Systems' Ariel Efrati (CEO) and Moshe Shimon (VP of Product Management) discuss virtualization and how the company's new Open Metro Edge solution utilizes the SDN and NFV concepts to accelerate and orchestrate service delivery through its innovative product portfolio and software applications.
LRTV Custom TV
NFV Myths: Is NFV Still Several Years Away?

8|11|14   |   1:13   |   (0) comments


Some say that NFV (network functions virtualization) is still several years away from being implemented on mobile operator networks. This isn't the case. Operators can get started on their paths to NFV now, as this short video from Skyfire shows.
LRTV Custom TV
A New Security Paradigm in SDN/NFV

7|28|14   |   02:54   |   (0) comments


Paul Shaneck, Global Director Network Solutions for Symantec, discusses the evolving virtualized network, explaining how Symantec is leading the security discussion as it relates to SDN and NFV, and helping to ensure the network is protected and compliant.
LRTV Documentaries
Sprint's Network Evolution

7|24|14   |   14:59   |   (0) comments


Sprint's Jay Bluhm gives a keynote speech at the Big Telecom Event (BTE) about Sprint's network and services evolution strategy, including Spark.
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Today's Cartoon
Hot Topics
Nokia's Maps Land on Samsung Devices
Sarah Reedy, Senior Editor, 8/29/2014
Now Google Planning Drones-to-Go
Dan Jones, Mobile Editor, 8/29/2014
Music to My Mobile
Sarah Reedy, Senior Editor, 8/28/2014
Be Open to the Freedom of Openness
Kelly Herrell, 8/29/2014
Netflix to FCC: Kill Comcast-TWC Deal
Alan Breznick, Cable/Video Practice Leader, 8/28/2014
Like Us on Facebook
Twitter Feed