Feeds

Cisco to acquire Meraki for $1.2bn

Payday for Google as Cisco establishes cloud networks division

Choosing a cloud hosting partner with confidence

Cisco has acquired cloud rival Meraki.

Meraki attracted much attention in around 2006, thanks to Google investing in the then-startup and its products that made it possible to dole out a few megabytes of free WiFi from its access points. That functionality was popular among early adopters who liked the idea of free WiFi and were willing to share their own connections with passing strangers.

Google stumped up some cash to make that happen, as in pre-iPhone 2006 it made sense to make it as easy as possible to get online.

Meraki has since added many other enterprise networking products and now offers switches, security appliances and WiFi kit, all managed through a web-based interface and some cloudy goodness said to make network admins' lives simpler and happier.

Tech Crunch reports Cisco will pay $US1.2bn, all in cash, to get its hands on the company.

Meraki has posted an FAQ about the transaction, including a letter from CEO Sanjit Biswas in which he says Cisco wants the company to become "a new 'Cloud Networking Group'," and that he and other Meraki founders intend to stay aboard and plan to turn the group into a billion-a-year concern.

Biswas also reveals that Cisco decided to strike before Meraki could go public. Meraki did not immediately accept the offer, instead pausing to consider if it was the best path to take for its technologies and people.

The company decided it was after being assured Cisco would "like to see us continue to release new features and products in the years ahead, and hopefully 'cloudify' other Cisco products." The networking giant also promised Meraki's "highly integrated and customer experience focused" modus operandi would be preserved after an acquisition.

Cisco's Romanski confirmed the intended acquisition in a saccharine blog post that proclaimed "Meraki built a unique cloud-based business from the ground up that addresses the broader networking shift towards cloud" and added the deal represents "another example of Cisco’s focus on accelerating our adoption of software based business models."

The acquisition is Cisco's second cloudy purchase inside a week: last Friday it hoovered up Cloupia, a maker of cloud management software. CEO John Chambers also recently said the company will soon make small telephony cells, in part to help its WiFi business. ®

Remote control for virtualized desktops

More from The Register

next story
BOFH: WHERE did this 'fax-enabled' printer UPGRADE come from?
Don't worry about that cable, it's part of the config
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
Want to STUFF Facebook with blatant ADVERTISING? Fine! But you must PAY
Pony up or push off, Zuck tells social marketeers
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Oi, Europe! Tell US feds to GTFO of our servers, say Microsoft and pals
By writing a really angry letter about how it's harming our cloud business, ta
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.