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Purchase of Czech-based Cognitive Security will strengthen Cisco's network security portfolio and let it dip into its international cash stash

Cisco Nabs Network Security Startup

Jeff Baumgartner
News Analysis
Jeff Baumgartner
1/29/2013
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Cisco Systems Inc. has struck a deal to acquire Czech Republic-based startup Cognitive Security s.r.o., a move that feeds into two areas that Cisco's been targeting these days: network security and offshore acquisitions. Cisco didn't disclose what it's paying for Cognitive, but it will be getting a company that has developed software designed to detect a wide range of cyber threats and security anomalies using "behavioral analysis of real-time data." Keeping tabs on such threats are growing in importance as mobile- and cloud-based services alter the IT security landscape, explained Cisco VP and Head of Corporate Business Development Hilton Romanski, who announced the deal Tuesday via this blog post. He said the plan is to weave Cognitive Security's analytics system with Cisco's cloud-based network security system and create a common policy engine for service provider and enterprise customers that keep network threats in check. Cognitive's team is expected to join Cisco's Security Technology Group under Senior VP Chris Young when the deal closes during Cisco's current fiscal year. Prague-based Cognitive Security was founded in August 2009 and opened a Silicon Valley branch in April 2010. Why this matters
The purchase should help Cisco flesh out a stated goal to be a top player in the network security market. And it gives Cisco yet another opportunity to dip into its international bank account, following recent acquisitions of two Israel-based companies: NDS Group and Intucell. Recall that Cisco has billions of dollars "trapped" outside the U.S. and has asked the government to approve a one-time tax break so Cisco can bring some of that cash back and, supposedly, create new stateside jobs. For more



— Jeff Baumgartner, Site Editor, Light Reading Cable



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Jeff Baumgartner
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Jeff Baumgartner,
User Rank: Light Beer
1/30/2013 | 2:55:47 PM
re: Cisco Nabs Network Security Startup
Timing's everything, I suppose... the day after Cisco announced this deal, they pushed out its latest annual security report:
http://www.marketwire.com/pres...

According to the report, Android malware-áencounters grew 2,577 percent in 2012, but mobile malware is still a relatively small thing, representing just 0.5%-átotal Web malware encounters.
By country, here's the malware encouter rankings (US still No. 1, while China dropped from No. 2 in 2011 to No. 6 in 2012:

1. United States-á33.14%
2. Russian Federation-á9.79%
3. Denmark-á9.55%
4. Sweden-á9.27%
5. Germany-á6.11%
6. China-á5.65%
7. United Kingdom-á4.07%
8. Turkey-á2.63%
9. Netherlands-á2.27%
10. Ireland-á1.95%
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