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How Viptela’s Acquisition Aligns with Cisco Systems’ Business

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Jun. 2 2017, Updated 9:06 a.m. ET

Cisco targets SD-WAN space with Viptela’s acquisition

Earlier in this series, we discussed the Cisco’s (CSCO) acquisition of MindMeld. In early May 2017, Cisco announced the acquisition of Viptela for $610 million. Viptela is an SD-WAN (software-defined wide-area network) specialist.

Viptela offers software-based offerings that customers can deploy as an on-premise workload or in the cloud. Viptela’s technology enables the application of SDN (software-defined networking) to WAN (wide-area networks), connecting remote facilities. SDN employs open software protocols instead of hardware to design, manage, and monitor networks.

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Viptela’s contribution to Cisco

Cisco already has two SD-WAN offerings— IWAN (Intelligent WAN) and Meraki SD-WAN. In its press release, Cisco Systems noted, “Together, Cisco and Viptela will deliver next generation SD-WAN offerings to our customers by combining the best of Viptela’s SD-WAN solution with the best of Cisco’s ISR platform and IWAN solution.”

Viptela’s offerings could be run on Cisco’s ISR (integrated services router), giving customers a simpler cloud-managed SD-WAN solution that uses existing hardware.

Cisco noted that Viptela’s orchestration and cloud-first network management would be integrated with Cisco’s routing platforms and SD-WAN capabilities. The company added, “With Viptela and Cisco, we will be able to deliver a comprehensive portfolio of comprehensive on-premises, hybrid, and cloud-based SD-WAN solutions.”

Viptela’s technology addition and integration to Cisco’s offerings could prove beneficial for IWAN products, which could help in the sale of additional networking software.

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