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 !
Flash Poll
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.
LRTV Documentaries
BTE Keynote: The Software-Defined Operator

7|24|14   |   18:43   |   (1) comment


Deutsche Telekom's Axel Clauberg explains the concept of the software-defined operator to the Big Telecom Event (BTE) crowd.
Light Reedy
Numbers Are In: LR's 2014 Salary Survey

7|24|14   |   1:25   |   (7) comments


Our fourth annual Salary Survey paints a picture of who's hiring, firing, earning, and yearning for a change in the telecom industry.
LRTV Custom TV
Driving the Network Transformation

7|23|14   |   4:29   |   (0) comments


Intel's Sandra Rivera discusses network transformation and how Intel technologies, programs, and standards body efforts have helped the industry migration to SDN and NFV.
LRTV Custom TV
Distributed NFV-Based Business Services by RAD

7|18|14   |   5:38   |   (0) comments


With the ETSI-approved Distributed NFV PoC running in the background, RAD's CEO, Dror Bin, talks about why D-NFV makes compelling sense for service providers, and about the dollars and cents RAD is putting behind D-NFV.
LRTV Custom TV
MRV – Accelerating Packet Optical Convergence

7|15|14   |   6:06   |   (0) comments


Giving you network insight to make your network smarter.
LRTV Custom TV
NFV-Enabled Ethernet for Generating New Revenues

7|15|14   |   5:49   |   (0) comments


Cyan's Planet Orchestrate allows service providers and their end-customers to activate software-based capabilities such as firewalls and encryption on top of existing Ethernet services in just minutes.
LRTV Custom TV
Symkloud NVF-Ready Video Transcoding, Big Data

7|9|14   |   3:41   |   (0) comments


Kontron and ISV partner Vantrix demonstrate high-performance video transcoding and data analytic solutions on same 2U standard platform that is ready for SDN and NFV deployments made by mobile, cable and cloud operators.
LRTV Huawei Video Resource Center
The Evolving Role of Hybrid Video for Competitive Success

7|4|14   |   4:09   |   (0) comments


At Huawei's Global Analysts Summit in Shenzhen, China, Steven C. Hawley from TV Strategies speaks to us about the evolving role of hybrid video for competitive success.
LRTV Huawei Video Resource Center
How CSPs Leverage Big Data in the Digital Economy

7|4|14   |   4:48   |   (2) comments


Justin van der Lande from Analysys Mason shares with us his views on how telecom operators can leverage customer asset monetization with big data. His discusses the current status of big data applications and the challenges and opportunities for telecom operators in the digital economy era.
LRTV Huawei Video Resource Center
Accelerator for Digital Business – Future Oriented BSS

7|4|14   |   3:08   |   (0) comments


Mobile and internet are becoming intertwined; IT and CT are integrating; and leading CSPs have begun to transform to information service and entertainment providers. How should the BSS system evolve to enable this transformation? Karl Whitelock, an analyst at Frost & Sullivan, shares his views.
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
Packet Design asks network professionals how they handle the cloud, SDN, and network management.
Today's Cartoon
Vacation Special Caption Competition Click Here
Latest Comment
Hot Topics
Is Windstream Boldly Setting a New Trend?
Carol Wilson, Editor-at-large, 7/29/2014
Sprint, T-Mobile: The Price War's On
Sarah Reedy, Senior Editor, 7/30/2014
Pics From Comic-Con -- Honest!
Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/30/2014
If Not Muni Networks, Then What?
Carol Wilson, Editor-at-large, 7/28/2014
Utilities Drive Connected Cars Into the Smart Grid
Jason Meyers, Senior Editor, Utility Communications/IoT, 7/31/2014
Like Us on Facebook
Twitter Feed