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...
You are here: Home / Cloud Computing / Cisco Acquires Meraki for $1.2 Billion
Is your endpoint data protected?
Cisco Buys Cloud-Networking Leader Meraki for $1.2 Billion
Cisco Buys Cloud-Networking Leader Meraki for $1.2 Billion
By Jennifer LeClaire / NewsFactor Network Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
PUBLISHED:
NOVEMBER
19
2012



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:

Like Us on FacebookFollow Us on Twitter
TOP STORIES NOW
MAY BE OF INTEREST
IT departments are embracing cloud backup, but there's a lot you need to know before choosing a service provider. Learn all the critical things you need to know by accessing the white paper, "5 Things You Didn't Know About Cloud Backup". Access the White Paper now.
MORE IN CLOUD COMPUTING
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Dairy Queen Latest Retailer To Report Hack
Dairy Queen is known for its hot fries and sweet treats, but it just made cyber history as the latest victim of a hack attack. The fast food chain said that customer data at some stores may be at risk.
 
Lessons from the JPMorgan Chase Cyberattack
JPMorgan Chase is investigating a likely cyberattack. The banking giant is cooperating with law enforcement, including the FBI, to understand what data hackers may have obtained.
 
Who Is the Hacker Group Lizard Squad?
Are they dangerous or just obnoxious? That’s what many are wondering about the hacker group Lizard Squad, which tweeted out a bomb threat that grounded a flight with a Sony exec aboard.
 

Enterprise Hardware Spotlight
Intel Intros Lightning-Fast PC Processors
Call it extreme. Intel just took the covers off its first-ever eight-core desktop processor, which is aimed at hardcore power users who expect more than the status quo from their computers.
 
HP Previews ProLiant Gen9 Data Center Servers
Because traditional data center and server architectures are “constraints” on businesses, HP is releasing new servers aimed at faster, simpler and more cost-effective delivery of computing services.
 
Apple Set To Release Largest iPad Ever
Tech giant Apple seems to have adopted the mantra “go big or go home.” The company is planning to introduce its largest iPad ever: a 12.9-inch behemoth that will dwarf its largest existing models.
 

Mobile Technology Spotlight
Samsung Maps Its Way with Nokia's 'Here' App for Galaxy Phones
Korean electronics giant Samsung has opted to license Here, Nokia’s mapping app -- formerly known as Nokia Maps -- for its Tizen-powered smart devices and Samsung Gear S wearable.
 
Google Successfully Tests Its Own Delivery Drone
While top technology companies are engaged in an "arms race" to develop drones that can quickly deliver goods to anyone anywhere, Google has revealed it successfully tested its own version.
 
iPhone 6 May Do NFC-Based Mobile Payments
Apple's latest version of the iPhone may have a mobile wallet to pay for purchases with a tap of the phone. The iPhone 6 reportedly is equipped with near-field communication (NFC) technology.
 

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.