Cisco invests $100 million in Insieme

Telecom Lead America: In order to boost its new
product offerings and build something called “software defined
networking” products, Cisco Systems has invested $100 million in Insieme,
a networking startup focused on research and development in the datacenter
market.

 

With the investment Cisco is securing the option for a
buyout.

 

Insieme was founded by three Cisco employees, Mario
Mazzola, Luca Cafiero and Prem Jain in January, who together have previously
sold two companies to Cisco.

 

The memo further reads, Insieme’s product development
efforts are complementary to that of Cisco’s current and planned internal
investments. These types of investments have strongly benefited Cisco in the
past, and we will continue to look for similar ways to complement our internal
development capabilities.”

 

Earlier, Cisco had agreed to buy NDS Group for about $5
billion last month to tap demand for next-generation video services, under its
turnaround plan to technology acquisitions and add more profitable products.

 

The investment in Insieme signals Cisco’s efforts to
deepen expertise in a new area of computer networking where software handles
the tasks typically done by more expensive networking hardware.

 

Furthermore, Cisco is set to buy ClearAccess, a provider of software to service
providers for provisioning and management of residential and mobile
devices.

 

This acquisition is line with Cisco’s strategic
initiatives to build software platforms and drive business and technology
architecture. It complements Cisco’s growing portfolio and capabilities for
service provider customers.

 

Cisco launches innovative networking products for small
enterprises

 

Recently, Cisco launched new wireless access points,
routers, switches, unified communications and partner-managed service offerings
for small enterprises.

 


These solutions help drive productivity and growth by allowing small businesses
to get the most out of smartphones, tablets, and cloud applications and
services.

 

editor@telecomlead.com

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