Feeds

Cisco to acquire Meraki for $1.2bn

Payday for Google as Cisco establishes cloud networks division

High performance access to file storage

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. ®

High performance access to file storage

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
European Court of Justice rips up Data Retention Directive
Rules 'interfering' measure to be 'invalid'
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Bored with trading oil and gold? Why not flog some CLOUD servers?
Chicago Mercantile Exchange plans cloud spot exchange
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
IT bods: How long does it take YOU to train up on new tech?
I'll leave my arrays to do the hard work, if you don't mind
Amazon reveals its Google-killing 'R3' server instances
A mega-memory instance that never forgets
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.