Holiday Shopping Fever: Cisco Buys BroadHop for Network Policy Management

by Gaurav Kheterpal on December 19, 2012

4 acquisitions in a month and 11 acquisitions this year – doesn’t that sound impractical, especially for a company that had a worrying forecast, witnessed layoffs and was hampered by sudden senior management reshuffles, well – that’s Cisco for you!

Check out this list – MerakiCloupiaLightwireNDSClearAccessTruvisoInsieme and now BroadHop. The common denominator – these are all companies that’ve been acquired by Cisco in the last few months. The latest entry on that list is Denver-based BroadHop Inc., a provider of policy control and service management technology for carrier networks. Cisco says it plans to  integrate BroadHop’s technology for mobile and fixed networks into its Service Provider Mobility Group.

BroadHop has been around since 2003 and it is best known for its traffic management and policy server that’s deployed in more than 70 wireline and mobile carrier networks around the world. The USP of BroadHop’s technology is that it allows carriers to develop service tiers based on bandwidth or application, thereby allowing service providers to offer ”customized premium service packages,” suitable for applications such as on-demand streaming. The company is currently a service provider Wi-Fi partner to Cisco and partners with Hewlett-Packard, NEC, IBM and several other high profile OEMs.

“With global IP traffic projected to increase threefold over the next five years –after having increased eight-fold over the past five years – policy control and service creation at large scale has never been more vital for mobile and fixed communications service providers,” said Cisco in a statement yesterday. “Cisco plans to add a critical piece of service creation technology to its portfolio today by announcing its intent to acquire BroadHop.”

Cisco plans to leverage BroadHop technology to offer carrier networks a better and more flexible way to control, customize and monetize the services they offer, a win for both the service providers and users. It would also be beneficial in the company’s Open Network Environment (ONE) strategy, as it brings considerable improvements in key areas such as configurability, programmability and scalability. The idea is to have a simplistic solution which not only caters to different service tiers, but also offers the flexibility to charge different rates for different types of traffic.

Once the deal goes through, the BroadHop team will report to Shailesh Shukla, vice president and general manager of Cisco’s software and applications group. Financial terms of the deal have not been disclosed.

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

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