Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
APC Free White Paper
Optimize your network investment &
Enter to win a Samsung Galaxy Note

www.apc.com
Business Briefing
Next Generation Data Center Is Here!
Average Rating:
Rate this article:  
Cisco Buys Cloud-Networking Leader Meraki for $1.2 Billion
Cisco Buys Cloud-Networking Leader Meraki for $1.2 Billion

By Jennifer LeClaire
November 19, 2012 11:59AM

    Bookmark and Share
Formed in 2006 by MIT PhD candidates, Meraki was funded by Sequoia Capital and Google. Meraki says it now has 10,000 customers using its cloud managed products including wireless LAN, Ethernet switches, security appliances, and mobile device management. The company name Meraki is Greek for doing something with passion and soul.
 



Cisco on Monday announced its latest blockbuster acquisition. The networking giant intends to buy privately held cloud networking leader Meraki for $1.2 billion in cash and retention-based incentives.

San Francisco-based Meraki (pronounced may-rah-kee) offers midmarket customers on-premise networking solutions that can be centrally managed from the cloud. Meraki's cloud-based technology offers customers Wi-Fi, switching, security and mobile device management (MDM). Meraki solutions support BYOD (bring your own device) environments, guest networking, application control, WAN optimization, application firewalls, and other advanced networking services.

"The acquisition of Meraki enables Cisco to make simple, secure, cloud-managed networks available to our global customer base of mid-sized businesses and enterprises. These companies have the same IT needs as larger organizations, but without the resources to integrate complex IT solutions," said Rob Soderbery, senior VP of Cisco's Enterprise Networking Group. "Meraki's solution was built from the ground up, optimized for cloud with tremendous scale, and is already in use by thousands of customers to manage hundreds of thousands of devices."

IT's Mobile-Cloud Era Transformation

Cisco has been chronicling the IT industry's transformation in the mobile-cloud era and working to meet new networking and business enablement challenges with cloud networking as well as device and security services. Meraki is part of that effort. Cisco said Meraki complements and expands its strategy to offer more software-centric solutions to simplify network management, help customers empower mobile workforces, and generate new revenue opportunities for partners.

Cisco said the acquisition will expand its network offerings by providing scalable solutions for midmarket businesses. Cisco also expects Meraki to strengthen its Unified Access platform, which works to make IT more responsive to business innovation by simplifying IT operations and uniting wired and wireless networks, policy and management into one integrated network infrastructure, unlike other competitive offerings.

Meraki was founded by members of MIT's Laboratory for Computer Science. Meraki combines a high-velocity software development methodology with a tightly linked inside sales and channel model that will form the new Cloud Networking Group. The firm has offices in New York, London and Mexico. The acquisition is expected to close in the second quarter of Cisco's 2013 fiscal year.

Meraki's Front-End Connection

Zeus Kerravala, principal analyst at ZK Research, said there is a market for an alternative type of deployment model. He pointed to Aruba's success with its proprietary solution, dubbed Instant, as one example.

Most of the start-ups in the space, including Meraki and Aerohive, have all built controller-less access solutions, Kerravala told us. "Clearly there's a market for controller-less solutions and Cisco didn't have one. Even with Cisco's excellent sales force, I think they were getting shut out at some companies looking for an alternative solution. That's one of the reasons this acquisition was appealing."

So the question then is why Cisco decided to acquire Meraki versus Aerohive. Most people think of Meraki as a Wi-Fi vendor, but Kerravala said Meraki is better described as a cloud-managed vendor that happens to sell Wi-Fi as its primary product.

"Meraki also has cloud-managed switches and cloud-managed security devices. If you put your long-term hat on, Cisco is interested in the cloud-management capability for the rest of its product line," Kerravala said.

"Cisco rolled out the onePK product," Kerravala said, referring to the One Platform Kit which Cisco introduced in June as part of its Open Network Environment solution. OnePK provides APIs for developers across Cisco operating systems.

And, Kerravala said, Cisco already has the "back-end interface to allow cloud management of their switches. What they don't have is the front-end tool. Meraki gives them that."
 

Tell Us What You Think
Comment:

Name:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Business Briefing
1.   Chief Customer Officers' Clout Grows
2.   Amazon Invests $2B To Grow in India
3.   Twitter Soars on Strong Earnings
4.   Oracle Bosses Get Their Pay Slashed
5.   FTC Wants Fix for Mobile Cramming


advertisement
Apple Digital Book Settlement Set
But company still appealing decision.
Average Rating:
Radical.FM's Freemium Biz Model
Online radio startup asks for donations.
Average Rating:
Oracle Bosses Get Their Pay Slashed
Under pressure to rein in exec perks.
Average Rating:


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
New 'Backoff' Malware Slips Undetected into Retail Systems
'Malicious actors' are using a new variety of malware to access consumer payment data remotely through point-of-sale systems, according to a report from the Department of Homeland Security.
 
IBM Beefs Up Identity Intelligence Security Solutions
Big Blue is betting big on identity intelligence. IBM just acquired a private firm with security software to govern user access to apps and data across cloud and on-premise environments.
 
USB Security Flaw Lets Hackers Hijack PCs
Hackers can use the firmware that controls USB functions to take control of computers, say security experts. That means there may be a new class of attack for which there are no defenses.
 

Enterprise Hardware Spotlight
AMD's ARM-Based Opteron Out in $3K Dev Kit
It's dubbed "Seattle" and it's AMD's first 64-bit ARM-based Opteron processor. The low-power chip is being released as part of AMD’s Opteron A1100-series developer kit, and aimed at high-end data center needs.
 
Apple Updates MacBook Pros, Cuts Prices Up to $100
The popular MacBook Pro laptop line just got an update and a price cut of as much as $100. The MacBook Pro with Retina display now includes faster processors and double the memory.
 
Dell, BlackBerry Not Sweating Apple-IBM Alliance
IBM's recent move to partner with Apple to sell iPhones and iPads loaded with corporate applications has excited investors in both companies, but two rivals say they are unperturbed for now.
 

Mobile Technology Spotlight
BlackBerry Messenger Now Available on Windows Phone
BlackBerry's free Messenger chatting and voice app is out of beta and widely available for Windows Phone users, the company said. BBM offers secure messaging, Groups, Voice, Channels and more.
 
Virgin Mobile Offers Custom Smartphone Plans
As the wireless carrier wars continue heating up, Virgin Mobile just threw the customization coal onto the fire. The firm has debuted a no-annual-contract plan with rates based on individual use.
 
Collaboration Provider Asana Revamps Mobile App
Asana, a collaboration software provider started by a Facebook founder, is now out with a rebuilt native iOS mobile app. It replaces one that even the company admits was not up to par.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.