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Cisco gobbles up security cloud upstart Observable Networks

Switchzilla needs its five startups a day

By Kat Hall

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Cisco hopes to boost its enterprise security gear by snapping up real-time network behavior monitoring startup Observable Networks.

No financial details were disclosed regarding the deal. The biz, located in Saint Louis, Missouri, was founded in 2011 and raised $4.4m (£3.4m) from investors.

Switchzilla intends to use Observable to build out its Stealthwatch platform in the cloud, as the startup's tech runs on Amazon Web Services and Microsoft Azure.

Observable's CEO Bryan Doerr said: "We view this as both a validation of our company's realization of a big idea and an opportunity to take this big idea onto a bigger stage."

Rob Salvagno, Cisco's head of M&A, said: "The acquisition of Observable Networks supports Cisco's strategic transition toward software-centric solutions. We look forward to welcoming the Observable Networks team to the Security Business Group led by David Ulevitch."

Cisco said it expects the Observable Networks acquisition to be completed in the first quarter of fiscal year 2018.

Cisco has been keen to bolster its security offerings in recent years, seeing this as a key market for growth. Its other acquisitions in the areas include OpenDNS for $635m, Lancope for $453m, and CloudLock for $293m. ®

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