Cisco acquires Indian-origin Silicon Valley start-up Viptela

Cisco acquires Indian-origin Silicon Valley start-up Viptela

Posted by P. Charitha on May 4th 2017

TechCrunch Report: Cisco recently announced that it was acquiring cloud-based SD-WAN vendor Viptela for $610 million in cash! A year ago, Viptela was valued at $900 million by its investors, according to the database PitchBook. Viptela, a venture-backed startup based in San Jose, California was founded in 2012 by a team of accomplished Indian engineers from Cisco, Juniper Networks, and Alcatel-Lucent (Atif Khan, Venu Hemige, Khalid Raza, Amir Khan, Ramesh Prabagaran ). They hired a new CEO, Praveen Akkiraju four months ago and he is also a former Cisco employee. 
 
They make SD-WAN solutions, which mean a software-defined wide area network. That refers to a software-based network that enables companies to connect the networks of geographically dispersed offices.  Viptela is supposed to simplify all of this, making it easier to deploy and manage a process that has been traditionally fraught with complexity. “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.
 
The purchase of Viptela is consistent with the desire to keep that momentum going by purchasing additional services it can use to offset the shrinking hardware business over time, while continuing the transition to a cloud-based subscription business. When the deal closes, which is expected sometime in the second half of the year, the Viptela team will join Cisco’s Enterprise Routing team within the Networking and Security Business.

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