Why Cisco Systems Acquired Skyport Systems



Acquisition aimed at simplifying HCI

In January 2018, Cisco Systems (CSCO) announced its acquisition of Skyport Systems. Skyport has an HCI (hyper-converged infrastructure) solution that can secure workloads. Cisco aims to simplify the entire hybrid cloud process, and this acquisition will focus on the security aspect of the process.

According to a Markets and Markets report, the HCI market is estimated to grow at a CAGR (compound annual growth rate) of 43.6% between 2016 and 2022 and is expected to reach $12.6 billion by the end of the forecast period. The report named VMware (VMW), Hewlett Packard Enterprise (HPE), Cisco, Nutanix, and Maxta as major players in this space. The Asia-Pacific region is expected to drive growth due to a rise in demand for virtual applications.

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Skyport Systems has raised $67 million to date

Skyport Systems was founded in 2013 and has raised $67 million from investor funding to date, according to start-up tracker Crunchbase. Skyport last raised $30 million in Series C funding in March 2016. The Skyport acquisition will further diversify Cisco’s cloud services portfolio. According to Rob Salvagno, Cisco’s vice president of corporate development, “This acquisition will enable Cisco to utilize Skyport’s intellectual property, seasoned software and network expertise to accelerate priority areas across multiple Cisco portfolios.”


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