What is Cisco?
Cisco Systems (CSCO) is one of the world’s leading information technology and networking companies. As of June 2020, Cisco’s market value is 194.94 billion U.S. dollars, making it the largest company in the networking and communications equipment industry. Cisco has a model of acquiring companies to benefit from market acceleration, market expansion, and new market entry.
- Cisco Systems is one of the world’s leading information technology and networking companies.
- With a market value of nearly 195 billion US dollars, Cisco has taken a dominant position in the networking and communications equipment industry through acquisitions.
- Recent acquisitions have focused on acquiring capabilities in the following areas: 5G wireless, data center/hyper-converged infrastructure, artificial intelligence, and security.
Learn about Cisco’s acquisition
Cisco was founded in 1984. According to SiliconANGLE Media Inc, since then, it has acquired more than 200 companies, about 6 a year. Since 2017, Cisco’s acquisition strategy has reflected its focus on four areas: 5G wireless, data center/hyper-converged infrastructure, artificial intelligence, and security.
Cisco’s recent activities reflect its quest to play a prominent role in 5G and maintain its leading position as an infrastructure platform business. Therefore, according to SiliconANGLE, the recent acquisition is “cloud-first, application-centric and software-defined.”
This approach became apparent when Cisco acquired AppDynamics Inc. and Viptela Inc. in 2017 for a total of $4.3 billion. AppDynamics provides Cisco with an enterprise tool to manage application performance and software, while Viptela’s solution manages interconnected, distributed networks.
In addition, according to SiliconANGLE, the acquisition of Springpath Inc., Skyport Systems, Inc. and Australian network performance provider Exablaze Pty. Ltd. in the past two years has enabled Cisco to further enter the hyper-converged infrastructure field.
Cisco focuses on artificial intelligence (AI) and acquired MindMeld Inc. in 2017 and then redeployed it as an open source AI platform. Cisco acquired Accompany Inc. in 2018, an AI-driven relationship intelligence platform, and the company acquired Voicea Inc. as its Webex conferencing tool’s voice transcription solution. Other acquisitions focused on artificial intelligence include Perspica Inc., whose machine learning capabilities can evaluate large amounts of application data, and Cmpute.io, which analyzes the workload and consumption patterns of cloud deployments.
Here are five other notable acquisitions by Cisco.
Acacia Communications, Inc.
In July 2019, in response to the surge in 5G and data, Cisco acquired Cisco’s Acacia Communicaions Inc. for $2.6 billion. This acquisition gives the company optical component technology. This acquisition complements the acquisitions of software solutions company Ensoft Ltd. and Singularity Networks, Inc., which provides data processing technology.
Duo Security Company
In 2018, Cisco acquired Duo Security, Inc. for $2.35 billion. Duo is an early participant in the zero-trust strategy, assuming that all users and devices are untrustworthy unless otherwise proven. Cisco believes that this acquisition is a complement to its multi-cloud services.
“This acquisition will allow us to allow customers to securely connect any user on any device to any application on any network,” Cisco executive David Goeckeler said in the announcement. “It’s that simple.”
On March 22, 2016, Cisco acquired Jasper Technologies for $1.4 billion in cash. Jasper provides Cisco with a cloud-based IoT platform that allows companies to start, manage, and profit from IoT services. Jasper is the leading platform for the Internet of Things industry. It enables many of the world’s largest companies to connect any device via a cellular network and manage Internet of Things service connections through its software as a service (SaaS) platform.
Cisco acquired Meraki in 2012 for up to $1.2 billion. Meraki is a leader in cloud networking and has helped expand Cisco’s Wi-Fi network management technology. Meraki provides mid-market customers with network solutions that can be remotely managed from the cloud. Cisco’s acquisition led to the establishment of its cloud network business unit, while Meraki provided users with scalable network solutions.
In 2012, Cisco acquired the British software company NDS Group for approximately US$5 billion. This acquisition advances Cisco’s Videoscape strategy, which aims to create entertainment experiences through social media, video, and TV.
NDS Group, now renamed Cisco Videoscape, is a provider of video software and content security solutions that allows companies to safely provide entertainment experiences and profit from it.
Cisco has always been one of the largest and most successful networking companies in the world. The growth of the company’s product and service portfolio is mainly based on strong external acquisitions to help Cisco gain a prominent position in the cloud and software markets.