Cisco Acquires Cloupia In Support of Data Center Initiatives
We just reported that Cisco's quarterly results managed to beat Wall Street's expectations, directly supported by big bets on some fast growing Internet business trends.
They reported its net income increased 18% to $2.1 billion in its fiscal first quarter, which ended in October. They wasted no time in putting some of their profits to use as Cisco is on the move again, with yet one more acquisition. The company is acquiring Cloupia, a software company that automates converged data center infrastructure. Cisco will pay approximately $125 million in cash and retention-based incentives in exchange for all shares of Cloupia.
Cloupia is based in Santa Clara, Calif., and its solutions allow enterprises and service providers “to simplify the deployment and configuration of physical and virtual resources from a single management console.” Its infrastructure management software is said to enhance Cisco’s Unified Computing System and Nexus switching portfolio with a single “pane-of-glass” view into the automation of compute, network, storage, virtual machine and operating system resources.
The acquisition of Cloupia aligns to Cisco’s strategic goals to develop innovative data center, virtualization and cloud technologies, while also cultivating top talent. The company said that Cloupia employees will be integrated into Cisco’s Data Center Group. The acquisition is subject to various standard closing conditions and is expected to be completed in the second quarter of Cisco’s fiscal year 2013.
This is yet one more move by Cisco into the data center as their recent quarterly results highlight. Sales of Cisco's core switching and routing products last quarter slipped 2%. Yet very large gains in online video services (up 30%), wireless networking equipment (up 38%) and data centers (up 61%) more than made up for the decrease in traditional networking orders. Video is now Cisco's third-largest business, with more than $1 billion in sales. If you have never seen the Cisco Telepresence product you should, it is an amazing and sticky immersive video experience.
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