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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