Cisco Buys Into Virtual Security

Cisco Systems Inc. (Nasdaq: CSCO) has acquired tiny startup Virtuata, according to an entry on Cisco's blog Monday morning.

Milpitas, Calif.-based Virtuata is working on security for virtual machines, according to a note published by analyst Brian Marshall of ISI Group Inc. Monday. That jibes with hints in Cisco's blog (about the mix of virutalization and security) and on LinkedIn (where Viruata is described as developing next-generation security).

Virtuata is small -- about 20 people, according to Marshall -- and has already redirected its Web URL to Cisco's blog entry. The company will be joining Cisco's data center group under Senior Vice President David Yen.

Why this matters
Cisco's obsession with virtualization and cloud computing has been well known, but the company is also trying to strengthen its security offerings in all technology areas.

The company is perceived to have lost ground in that area, and new competitors are popping up. F5 made security a priority relatively recently, and Palo Alto Networks, a startup that Cisco didn't take seriously enough, is about to become one of the year's most closely watched IPOs.

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— Craig Matsumoto, Managing Editor, Light Reading