Cisco said it plans to acquire Viptela, a developer of software-defined, wide area networking (SD-WAN) technology, for US$610 million in cash and assumed equity awards.
With the acquisition, Cisco is looking to place its stake in the cloud-based SD-WAN technology. The acquisition is slated to close in the second half of 2017.
Viptela provides SD-WAN technology to several Fortune 500 companies and carriers like Verizon. Its offerings include the vSmart Cloud-based SDN-WAN Controller to centrally manage routing, policy, security, segmentation and authentication of devices; vManage Network Management System for centralised configuration and management; and vEdge routers.
Once acquired, Viptela would be the third SD-WAN technology offered by Cisco. Cisco IWAN is an on-premises SD-WAN technology, and Cisco Meraki is a cloud-based SD-WAN offering with unified threat management capabilities. Cisco acquired Meraki in 2012.
Rob Salvagno, vice president of corporate business development at Cisco, wrote in a blog post on Monday that Viptela offers a cloud-first approach to SD-WAN with cloud orchestration and branch network management as well as overlay technologies.
Salvagno wrote: "With Viptela, Cisco can offer customers more choice in their enterprise branch offices and WAN deployments, with a compelling SD-WAN solution that is easy to deploy and simple to manage."
"Together, Cisco and Viptela will be able to deliver next generation SD-WAN solutions to best serve all size and scale of customer needs, while accelerating Cisco’s transition to a recurring, software-based business model," Salvagno wrote.
Cisco said it expects to combine Viptela's cloud-first capabilities with Cisco's SD-WAN capabilities to accelerate the move to next-generation SD-WAN offerings.
Shenoy did not agree with the solution provider that Cisco was late to the SD-WAN market, and said that "late" was a pretty subjective term that depends on use cases.