Thursday, November 7, 2013

Cisco buys out start up Insieme




Network equipment maker Cisco Systems Inc, looking to protect its core business from new competition, has bought out the remainder of its majority owned data center technology start-up, Insieme, in a deal that could cost up to $863 million.

Cisco, which already owned 85 percent of Insieme, said it closed the deal with its employees, and the final price would be tied to sales targets for which it did not reveal details.It also unveiled Insieme's first products, which are Cisco's answer to software defined networking (SDN) technology, a growing trend among its rivals in developing software with features that are typically found in high-end network hardware.

Because SDN technology can run on cheaper hardware than Cisco's expensive routers and switches, the network hardware leader had to find a way to protect its equipment sales. Read more.

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