Cisco to Acquire SD-WAN Player Viptela for $610 Million

Zenica JoyMay 11, 2017

Cisco, the worldwide leader of information technology and networking solutions, has entered into a definitive agreement to acquire Viptela Inc., a privately-held software-defined wide area network (SD-WAN) company for $610 million in cash and assumed equity awards.

The acquisition (which is expected to close in the second half of 2017) supports Cisco’s strategic transition towards software-centric solutions that enable predictable, recurring revenue. This will also help Cisco accelerate the path to developing next-generation SD-WAN solutions that improve networking and provide increased functionality and simplicity through the cloud.

Expanding Cisco’s SD-WAN Portfolio

Viptela is a pure open, software-based solution that is flexible and easy to deploy. By integrating Viptela’s cloud first network management, orchestration, and overlay technologies with industry-leading routing platforms, services, and SD-WAN capabilities from Cisco, customers will have more choices in their enterprise branch offices and WAN deployments. rob salvagno cisco's vp of corporate business development

In a blog post, Rob Salvagno, Cisco’s VP of Corporate Business Development, shared his thoughts about the acquisition.

“Cisco has been providing SD-WAN services for several years,” said Salvagno. “The Cisco Intelligent WAN (IWAN) solution is an on-premises SD-WAN offering for companies that need advanced routing features, and Cisco Meraki adds in cloud-based unified threat management functionality. With the Viptela acquisition, Cisco is aiming to provide more choices for enterprise branch offices and WAN deployments so it can better meet varying size and scale requirements."

Salvagno also said that adding Viptela's SD-WAN capabilities into Cisco's network will help the company accelerate its transition to a recurring, software-based business model.

Scott Harrell, the Senior Vice President of Product Management for the Cisco Enterprise Networking Group, also had this to say about the acquisition. 

“Viptela’s technology is cloud-first, with a focus on simplicity and ease of deployment while simultaneously providing a rich set of capabilities and scale. These principles are what today’s customers demand,” said  Harrell. “With Viptela and Cisco, we will be able to deliver a comprehensive portfolio of comprehensive on-premises, hybrid, and cloud-based SD-WAN solutions.”

After the acquisition closes, Cisco and Viptela’s engineering teams will be working closely together to enhance Cisco’s SD-WAN offering and ensure continued support for their customers. The Viptela team will officially join the Enterprise Routing team within Cisco’s Networking and Security Business led by Senior Vice President, David Goeckeler.

How Can Viptela Strengthen Cisco’s SD-WAN Service

Wide area network (WAN) management is becoming a complicated and expensive endeavor for many businesses as employees turn to mobile devices with billions of Internet of Things (IoT) devices being added to the network at a rapid rate. As organizations continue to move their operations and applications to the cloud, businesses should leverage cost-effective SD-WAN solutions to help them manage their WAN deployments and allow for micro-segmentation that can efficiently improve access to both the cloud and corporate networks.

With Cisco’s acquisition of Viptela, the company further strengthens its SD-WAN portfolio and helps businesses enhance the management of WAN deployments.viptela strengthens cisco's sd-wan portfolio

In a blog post, Praveen Akkiraju, the Chief Executive Officer of Viptela, expressed his enthusiasm about the acquisition.

“The Viptela fabric especially, as it relates to SD-WAN and cloud networking, fits in as an important piece of Cisco’s Enterprise Networking strategy which is driving an industry-wide transition to a software-centric architecture and business model,” said Akkiraju. “Viptela’s cloud-first, software-driven approach uniquely complements Cisco’s Digital Networks Architecture (DNA) and its principles of security, virtualization, automation, and analytics.”

As Cisco brings Viptela into its fold, the company further strengthens its position as one of leading SD-WAN providers in the industry. The acquisition will also allow Viptela to continue its commitment to help customers gain new capabilities that enable them to manage and orchestrate WAN deployments that boost access to their cloud solutions and corporate networks.

“The combined solution enables us to offer customers broad based capabilities such as Software Defined WAN, on ramps to IaaS/SaaS Clouds and Network-as-a-Service offerings. We remain committed to our common culture of laser focus on customers and partners as we work with them to enable this digital IT transformation,”  Akkiraju added.

For more information about Cisco and their intelligent SD-WAN solutions and comprehensive cloud-based communication and collaboration solutions, please visit their official website.

 

About Cisco

Cisco (NASDAQ: CSCO) is the largest provider of IT and networking solutions in the world, transforming how customers, employees, investors, and partners connect, communicate, and collaborate.  Established in 1984, Cisco continues to shape the future of the Internet by creating powerful communication and networking solutions that increase business productivity and drive sales. Headquartered in San José, California, Cisco develops, manufactures, and sells a wide variety of IT and networking products, including analytics, automation, and networking software, conferencing tools, routers, switches, and cloud-based unified communications solutions.

 

About Viptela

Viptela is a trusted provider of Software-Defined Wide Area Network (SD-WAN) technology solutions that allow businesses to build cost-effective WANs. Established in 2012, the company is committed to changing the networking playing field by developing simple, reliable, and secure solutions. Viptela’s SD-WAN solution improves security and uptime, increases bandwidth by 10X, and reduces operating costs in the WAN by 50%.