& cplSiteName &

Cisco Shells Out $1.2B for Meraki

Ray Le Maistre
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        ADD A COMMENT
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 Sabre
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
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
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.
Valley Wonk
OFC & Hyperscale: A Good Mix?

3|24|17   |   01:50   |   (0) comments


Cloud and telecom players want different types of equipment for their networks, as the chatter at OFC reveals.
LRTV Custom TV
Etisalat on NFV Journey

3|24|17   |   10:37   |   (0) comments


Etisalat is a service provider that prides itself on bringing innovative technologies to the markets it serves. It was one of the first operators to implement 3G and leads the pack in fiber penetration. Now, Esmaeel Al Hammadi, Etisalat's SVP of Network Development, explains the operator's journey to virtualization, beginning with the network core, as well as the ...
LRTV Huawei Video Resource Center
Huawei at CeBIT 2017: Day 3

3|22|17   |     |   (0) comments


Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting on the application of technologies and key business verticals such as transportation, smart city, manufacturing, media and finance.
LRTV Documentaries
No Regrets: Cox's Finkelstein on Fiber & More

3|22|17   |     |   (0) comments


At the Cable Next-Gen Technologies & Strategies event in Denver, Cox's Jeff Finkelstein examines the cable capex conundrum.
LRTV Documentaries
Cable Next-Gen: The 'Mile High' View From Denver

3|22|17   |   11:56   |   (0) comments


Alan Breznick kicks off the Cable Next-Gen Technologies & Strategies event in Denver, casting his thousand-yard stare over cable's current competitive landscape.
LRTV Huawei Video Resource Center
Huawei at CeBIT 2017: Day 2

3|21|17   |   2:27   |   (0) comments


Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting digital transformation solutions around IoT, smart data centers, OpenCloud ecosystem and its newly announced storage-as-a-service solution.
LRTV Custom TV
Driving Better Mobile Customer Experience While Transforming the Mobile Network

3|21|17   |   7:47   |   (0) comments


The Citrix NetScaler mobile gateway is an intelligent traffic management solution which can markedly improve the customer experience provided by mobile operators, even when traffic is encrypted. Critical network services can be consolidated and virtualized using NetScaler. Because of the unique architecture, NetScaler can be deployed on any hypervisor, on a ...
LRTV Custom TV
Mastercard: What's Next for Mobile Payments?

3|21|17   |   7:49   |   (0) comments


2017 marks the fifth consecutive year for Mastercard at Mobile World Congress and it was a great time to reflect on the amazing advances the payments industry has made as well as discuss "What's Next' in the digital commerce future. We spoke to James Anderson, executive vice president of digital payments at MasterCard, about digital wallets to tokenization to ...
LRTV Custom TV
Mastercard: 2 Billion Adults 'Trapped' in Cash Economy

3|21|17   |   03:51   |   (1) comment


Despite advances made in the last several years, two billion adults around the world are trapped in a cash economy and lack what we take for granted -- a safe way to receive, save and use money. Shamina Singh, executive vice president of sustainability and president of the Mastercard Center for Inclusive Growth, chats about how Mastercard is developing new ways to ...
LRTV Custom TV
Mastercard: Payment From Every Device

3|21|17   |   5:55   |   (0) comments


A world where everything and everyone is connected creates new points of interaction for commerce. These digital experiences cannot be developed in isolation and instead require an ecosystem to drive mass consumer and enterprise adoption and create better consumer engagement. Predicting when that growth will happen is difficult, but always keeping the end user in ...
LRTV Interviews
InterDigital's Role in the 5G, IoT Era

3|21|17   |   05:47   |   (0) comments


Alan Carlton, managing director and VP for Europe at InterDigital, talks about the company's role in 5G projects in Europe and the prospects for the company in the IoT market.
LRTV Interviews
Lessons Learned From Digital Transformation

3|21|17   |   05:51   |   (0) comments


Ravi Palepu, global head of Telco Solutions at Virtusa, talks about some key takeaways from telco digital transformation experiences during the past couple of years.
Upcoming Live Events
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
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
High-Band 5G: Let's Address the Range Question, Shall We?
Dan Jones, Mobile Editor, 3/21/2017
Eurobites: Italy First Pasta the Post for 5G
Paul Rainford, Assistant Editor, Europe, 3/17/2017
Eurobites: A1, Nokia Turn It Up to 11
Paul Rainford, Assistant Editor, Europe, 3/22/2017
5G Faces a Marathon, Not a Sprint
Iain Morris, News Editor, 3/17/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
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.
At MWC 2017, Qualcomm's CTO Matt Grob talks to Light Reading's CEO and Founder Steve Saunders about the progress being made in the development of the technologies and standards that will underpin 5G.
Animals with Phones
Neither Do We Click Here
Is that a prerequisite?
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.