Viptela Acquired By Cisco For $61

Margaret Brown May 04, 2017
Viptela Acquired By Cisco For $61

Viptela, a private software-defined wide area network startup has recently been offered to be bought by American tech and networking giant Cisco for an amount of $610 million in cash.

Cheaper Acquisition Price

The amount surprised some investors as Viptela is currently valued at $900 million and has raised over $100 million from venture capitalist like Sequioa for their venture funding and has reached their current valuation last May 2016 when it raised $75 million.

Sources from the company have stated that the cheaper price Viptela was sold to Cisco was due to the hard time the company is having in getting sales from their wide area networking. Although the company’s technology is successful, reports state that the founders thought of the technology surviving longer when placed under Cisco’s management.

The software startup that originated in India will be acquired by Cisco which will allow the company to further expand their portfolio to a comprehensive one with on premises, hybrid, and cloud-based SD-WAN solutions. Viptela which was founded back in 2012 was started by former Cisco engineers hailing from the Indian sub-continent.

Viptela To Expand Cisco Network Division

According to Viptela chief executive officer Praveen Akkiraju, the company’s SD-wan and cloud networking would “fit in as an important piece of Cisco’s Enterprise Networking Strategy which is driving an industry wide transition to software centric architecture and business model.”

Cisco stated that managing the network would become more complex as more and more applications move to the cloud, and billions of Internet of things(IoT) devices are added to their network.

In a statement, Cisco added that more customers are turning to SD-WAN solutions in managing and orchestrating their WAN deployments at a more cost-effective way in improving the access to their cloud and their corporate network. Cisco then stated that Viptela will provide them a compelling SD-WAN solution that will simplify management and increase agility further reducing costs of interconnective dispersed enterprise networks.

According to Cisco, Viptela’s network management, overlay technologies, and orchestration will given then an easier way to deploy and manage SD-WAN.

Cisco Enterprise Networking Group Senior vice president of product management Scott Harrell stated that Viptela cloud-first technology has a focus on simplicity and ease of deployment while simultaneously providing a rich set of capabilities and scale which happens to be the principles customers nowadays demand.

The team from Viptela is set to join Cisco’s Enterprise Routing team within the Networking and Security Business led by senior vice president David Goeckeler.

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Margaret Brown


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