Cisco Acquires ContainerX, Forays Into Cloud Software

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Cisco Systems Inc. (Nasdaq: CSCO) is acquiring ContainerX Inc., a startup developer of software for managing data center infrastructure.

ContainerX will be Cisco’s first acquisition in the so-called “container” market, which refers to a type of software that helps build and manage cloud computing resources, says Rob Salvagno, head of of Cisco’s M&A and venture investment team. Privately owned ContainerX is less than two years old and venture-capital funded, launching its first beta version in November 2015. The company is based in San Jose, California, and led by co-founders Pradeep Padala, chief technology officer, and Kiran Kamity, CEO. Cisco, also based in San Jose, is the largest developer and seller of computer networking equipment in the world.

With the acquisition announcement, ContainerX will turn off its product downloads and suspend technical support until details of the acquisition are worked out, Kamity says. The ContainerX team will join Cisco’s cloud platform and services group, which is headed by Kip Compton, Cisco vice president. Terms of the deal were not disclosed.

Recent Cisco acquisitions have included CloudLock and cybersecurity firms Lancope, Canaan Partners, Council Capital and HIG Partners. In the cloud computing space, Apollo Global Management LLC (NYSE: APO) recently agreed to acquire Rackspace Hosting Inc. (NYSE: RAX), a cloud services company; Intel Corp. (Nasdaq: INTC) reported plans to buy Nervana Systems for its software, a cloud service and hardware for artificial intelligence applications; and Oracle Corp. (NYSE: ORCL) announced plans to buy NetSuite Inc. (NYSE: N), the cloud customer relationship management software provider.

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