Cisco strikes $610m deal to buy SD-WAN firm Viptela

James Pearce
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Cisco is looking to expand its SD-WAN portfolio with the acquisition of startup Viptela

Cisco has announced the $610 million acquisition of networking startup Viptela, as it looks to expand is software defined WAN (SD-WAN) portfolio.

Cisco already offers an IWAN solution which delivers on-premise SD-WAN services for customers, but said this latest acquisition would help strengthen its product base.

Viptela sells network technology allowing companies to connect branch offices with corporate data centres over the cloud. It was founded by former Cisco engineers in 2012, and has raised nearly $110 million in investment.

Its cloud-first offering includes cloud orchestration and management of branch networks, overlay technologies, and central management of WAN functions from a real-time dashboard.

Viptela will be integrated into Cisco’s Enterprise Routing team within its Networking and Security group that is led by senior vice president David Goeckeler.

“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,” Scott Harrell, senior vice president of product management for the Cisco Enterprise Networking Group said in a statement.

It is the second acquisition for Cisco’s cloud division this year, following the $3.7 billion purchase of performance and monitoring firm AppDynamics in January.

The takeover of Viptela continues Cisco’s strategy of expanding its services portfolio to offset its shrinking hardware business. The deal is expected to close in the second half of the year, Cisco said.