Cloud Services

Cisco to Buy Metacloud for Hybrid Clouds

Cisco said Wednesday that it intends to buy startup Metacloud for an undisclosed sum to help it build hybrid public and private clouds for customers.

Metacloud is an OpenStack-based private cloud company, which calls itself a "software-as-a-service" (SaaS ) provider. Cisco Systems Inc. (Nasdaq: CSCO) says that Metacloud's know-how will be "critical" in enabling public-private hybrids for the networking giant's "Intercloud" initiative. (See Cisco Aims for '#1' in Hybrid Cloud.)

"Together, Cisco and Metacloud will enable the creation of hybrid cloud environments that combine service provider public cloud deployments with remotely managed OpenStack private clouds," writes Hilton Romanski, SVP and head of business development at Cisco in a blog Wednesday. The bottom line, he adds, for customers is "more agility for less money." (See 3 Faces of Cloud.)

"Metacloud customers are part of a shift from primarily on-premise to hybrid IT -- a mix of private cloud, public cloud, and on-premise applications that enable greater business agility and lower costs," writes Metacloud co-founder Sean Lynch in his company blog on the acquisition.

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Pasadena, Calif.-based Metacloud Inc. was founded in 2011. The startup has raised $25 million of funding in total. It closed its series B round of $15 million in May.

This buy will contribute towards Cisco's goal of building the world's largest global "intercloud," which will be "a worldwide network of interconnected clouds and cloud service providers." Cisco said in the spring that it expects to invest more than $1 billion in this expansion of its cloud business over the next two years.

The acquisition is expected to close in the first quarter of 2015. Upon completion, Metacloud employees will join Cisco's cloud infrastructure and managed services organization led by SVP Faiyaz Shahpurwala.

— Dan Jones, Mobile Editor, Light Reading

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