Cisco completes $610m Viptela acquisition

04 August 2017 | Jason McGee-Abe


Cisco has completed the acquisition of Viptela, a privately held software-defined wide area network (SD-WAN) company based in San Jose, US.

600 x 90 WAN banner

Cisco has acquired the company for $610 million in cash and assumed equity awards. Viptela will expand Cisco's SD-WAN portfolio with increased flexibility and simplicity delivered through the cloud to enterprises and telecom carriers.

"Cisco completed the acquisition of Viptela, which further accelerates our network intuitive vision we launched in June,” said Scott Harrell, SVP of product management for Cisco’s enterprise networking group, said in a company blog post.

Cisco had unveiled a new generation of intent-based networking solutions that represent one of the most significant breakthroughs in enterprise networking history. The intuitive network constantly learns, adapts, automates and protects, providing organisations with an intelligent and secure platform for digital transformation. The acquisition of Viptela fits into Cisco's strategic transition towards a software-centric, subscription-led networking model.

Harrell said: “With this new digital network architecture approach, Cisco is changing the fundamental blueprint for networking with reimagined hardware and the most advanced software. The shift from hardware-centric to software-driven networking will enable customers to experience a quantum leap in agility, productivity and performance.”

IDC estimates that worldwide SD-WAN infrastructure and services revenues will see a compound annual growth rate (CAGR) of 69.6% and reach $8.05 billion in 2021.

Viptela provides a compelling SD-WAN solution with advanced routing, segmentation and security capabilities for interconnecting complex enterprise networks. Its cloud-based network management, orchestration and overlay technologies make it easy to deploy and manage SD-WAN.

Cisco will commit significant engineering resources to bring next-generation SD-WAN solutions based on Viptela's industry leading technology to market. It will combine Viptela's cloud-first network management, orchestration and overlay technologies with industry-leading enterprise routing platforms and solutions from Cisco.

The Viptela team will join the enterprise routing team within the networking and security business led by senior vice president David Goeckeler.

“The Viptela team will be joining our enterprise networking engineering and sales teams to begin extending Cisco’s vision for intent-based networking across the WAN, campus, and branch. We are committed to continuing to accelerate the standalone roadmap for Viptela’s vEdge routers and overall SD-WAN solution. We will also be committing significant incremental engineering resources to bring unified next-generation SD-WAN solutions to market across our ISR and ASR routers as well as the newly announced DNA Center,” added Harrell.