Cisco Scoops Up Network Traffic Software Vendor Cariden

by Gaurav Kheterpal on November 30, 2012

Doesn’t this list make an impressive read – MerakiCloupiaLightwireNDSClearAccessTruviso and Insieme? The common denominator – these are all companies that’ve been acquired by Cisco in the last few months. And if you thought that’s all for the year, Cisco’s M&A team isn’t done yet.

The networking giant made yet another big move yesterday – announcing its intent to purchase privately held “network planning, design and traffic managements solutions provider” Cariden Technologies, for a total purchase price of $141 million. Incredible as it seems, this is Cisco’s third acquisition in November, following the purchase of Meraki and Cloupia.

Cisco plans to leverage Cariden’s capacity planning and management tools for IP/MPLS, or multi-protocol label switching, networks to improve its nLight technology. The deal is also expected to bolster Cisco’s Open Network Environment push by providing sophisticated wide area networking (WAN) orchestration capabilities.

Cariden, founded in 2001, is based in Sunnyvale, California and it specialises in helping service providers optimize the operations of their networks. Customers include Verizon, Deutsche Telecom, SingTel and Swisscom, among others. Although it doesn’t disclose its financial results, Cariden claims it’s been consistently profitable as its revenue has grown by a compounded annual rate of about 50 percent during the past five years. The company currently employs 70 people who’ll be joining Cisco’s workforce once the deal is completed.

Cariden is best known for its flagship products – Mate Design for designing, engineering and planning networks, and Mate Live, which enables users to do deep-dive analysis of networks and quickly detect and troubleshoot problems. There’s Mate Collector as well, which automatically gathers information on the network infrastructure and offers traffic data for planning and analytics.

Analysts view it as a strategic move by Cisco to gain an upper hand in the lucrative SDN segment. In April, Cisco outlined its SDN strategy and  invested $100 million in a networking startup called Insieme that was started by three of its ex-employees. Shortly after, Cisco’s arch rival VMware acquired Nicira, a software-defined networking company, in July for $1.26 billion. Move movement followed in the SDN segment as Big Switch Networks (BSN), a network virtualization company, best known for its OpenFlow platform, announced that it has raised $25 million in a new funding round.

“The Cariden acquisition reinforces Cisco’s commitment to offering service providers the technologies they need to optimize and monetize their networks, and ultimately grow their businesses,” Surya Panditi, senior vice president and general manager of Cisco’s service provider networking group, said in a statement.  “Given the widespread convergence of IP and optical networks, Cariden’s technology will help carriers more efficiently manage bandwidth, network traffic, and intelligence. This acquisition signals the next phase in Cisco’s packet and optical convergence strategy and further strengthens our ability to lead this market transition in networking.” 

SDN (Software Defined Networking) is being labeled as the next game changer technology in the networking world as it aims to make the hardware infrastructure oblivious to actual traffic patterns by enabling software programmability of flows and additional features. That essentially means switches and routers can be remotely maintained and even configured using third-party applications, thereby providing an efficient and cost effective solution while bringing down network maintenance costs.

The deal is expected to be completed in the second quarter of Cisco’s fiscal year 2013.

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Written by: Gaurav Kheterpal. www.digitcom.ca. Follow TheTelecomBlog.comby:RSS,TwitterFacebook, or YouTube.

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