Cisco (NASDAQ: CSCO) plans to expand its presence in software-defined networking (SDN) with an agreement to purchase software-defined wide-area network (SD-WAN) platform vendor Viptela Inc. Cisco will pay $610 million in cash and assumed equity awards in a transaction expected to close in the second half of this year.
Privately held and based in San Jose, Viptela provides cloud-based network management, orchestration, and overlay offerings designed to simplify the deployment and management of SD-WAN services. Its customers include Verizon, where it complements the carrier's use of Cisco's iWAN offering (see "Verizon partners with Viptela on SD-WAN").
Cisco sees Viptela's approach and products as in line with Cisco's Digital Network Architecture (DNA) transition to software-driven, automated networks. This includes complementing existing Cisco Intelligent WAN (IWAN) and Meraki SD-WAN offerings. The Viptela team will become part of the Enterprise Routing group within the Cisco's Networking and Security Business, which senior vice president David Goeckeler leads.
"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 Scott Harrell, senior vice president of product management for the Cisco Enterprise Networking Group. "With Viptela and Cisco, we will be able to deliver a comprehensive portfolio of comprehensive on-premises, hybrid, and cloud-based SD-WAN solutions."
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