Cisco Systems Inc. (Nasdaq: CSC) is buying Viptela Inc., a software-defined wide area network (SD-WAN) company, for $612 million in cash. As part of the deal, Cisco expects to benefit from the target's technology performance and simplicity delivered through the cloud.
Viptela provides cloud-based technology that manages SD-WANs and looks to reduce the costs of interconnecting dispersed enterprise networks. A dispersed enterprise network is a network of plants that are electronically linked so that the interconnected plants may share manufacturing and production resources. Managing the network has become more complex and challenging as applications move to the cloud, workers become more mobile, and droves of Internet-based devices are added to the network each day, explains Cisco. To keep up with the evolving times, customers are shifting toward SD-WAN technology to help manage and orchestrate their network deployments. The target will join Cisco’s enterprise routing team within the networking and security business.