Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Hardware
24/7/365 Network Uptime!
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:



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Hardware
1.   Schools Buy Million Chromebooks in Q2
2.   IRS: Lerner's Hard Drive Destroyed
3.   US Orders a New Cray for Nuclear Arms
4.   IBM Earmarks $3B for Next-Gen Chips
5.   PC Shipment Slump Bottoms Out


advertisement
Most Networks Not Ready for IoT
But most enterprises are prepared.
Average Rating:
Gartner Sees Tablets Up, PCs Down
But PC sales are recovering.
Average Rating:
Review: Tablets with Keyboard Covers
How do Surface and Lumia stack up?
Average Rating:


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

Network Security Spotlight
34 European Banks Hit by Android-Skirting Malware
Criminals have been finding gaping holes in Android-based two-factor authentication systems that banks around the world are using. The result: 34 banks in four European countries have been hit.
 
New Web Tracking Technologies Defeat Privacy Protections
Recently developed Web tracking tools are able to circumvent even the best privacy defenses, according to a new study by researchers at Princeton and the University of Leuven in Belgium.
 
Juniper DDoS Solution Aims at High-IQ Networks
In the face of more complex attacks, Juniper Networks is boosting its DDoS Secure solution to help companies mitigate the threats with more effective security intelligence throughout the network fabric.
 

Enterprise Hardware Spotlight
Contrary to Report, Lenovo's Staying in Small Windows Tablets
Device maker Lenovo has clarified a report that indicated it is getting out of the small Windows tablet business -- as in the ThinkPad 8 and the 8-inch Miix 2. But the firm said it is not exiting that market.
 
Seagate Unveils Networked Drives for Small Businesses
Seagate is out with five new networked attached storage products aimed at small businesses. The drives are for companies with up to 50 workers, and range in capacity from two to 20 terabytes.
 
Another Day, Another Internet of Things Consortium Is Born
In the emerging Internet of Things, zillions of devices will be talking to each other. Samsung, Intel and Dell just formed a consortium to ensure each thing can understand what others are saying.
 

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 | Small Business | 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.