Breaking News: SDN Consolidation Continues, Cisco to Acquire Cariden for $141M

Cisco to acquire Cariden

Cisco to Acquire Cariden

Summary: Cisco appears to be stockpiling network applications, a direction that would be crucial to the CiscoONE SDN strategy.

This morning Cisco accounted plans to acquire Cariden to enhance its Service Provider software-defined networking (SDN) solutions.  Surprisingly, this hasn’t been positioned as an SDN play — though from our direct experience with the company — they fit the definition of SDN and have real customers and revenue to prove it.

Equally impressive, Cariden built the company through blood, sweat and tears, bypassing traditional venture capital financing — providing budding entrepreneurs and folks considering joining an SDN startup inspiration to think differently.

I worked with Shailesh Shukla, the executive responsible for the Cariden acquisition, back at Juniper Networks — he’s a smart executive — and made a great purchase.

Cariden is an example of a network application that can drive adoption of SDN technologies.  For example, as Big Switch announced during their product launch, Cariden is integrated with Floodlight.

We believe this is the start of the Cisco acquiring network applications and can eventually be integrated with CiscoONE.  Expect to see more networking application acquisitions from Cisco in the near future.  We also expect to see a continued shift to Cisco and others increasingly acquiring software companies who’ve bypassed traditional venture capital financing.

Congrats Arman and team!

Check out SDNCentral’s other Cariden Coverage:

Cisco Press Release Below.

Cisco Announces Intent to Acquire Cariden
Acquisition Further Strengthens Cisco’s Ability to Lead the Evolution in Service Provider Networking
SAN JOSE, Calif. – Nov. 29, 2012 – Cisco today announced its intent to acquire privately held Cariden Technologies, Inc., a Sunnyvale, Calif.-based supplier of network planning, design and traffic management solutions for telecommunications service providers. With global service providers converging their Internet Protocol (IP) and optical networks to address exploding Internet and mobile traffic growth and complex traffic patterns, Cisco’s acquisition of Cariden will allow providers to enhance the visibility, programmability and efficiency of their converged networks, while improving service velocity.

Cariden’s industry-leading capacity planning and management tools for IP/MPLS (Multi-Protocol Label Switching) networks, which have been deployed by many of the world’s leading fixed and mobile network operators, will be integrated into Cisco’s Service Provider Networking Group to enable multilayer modeling and optimization of optical transport and IP/MPLS networks. Cariden’s products and technology will advance Cisco’s nLight technology for IP and optical convergence. The acquisition also supports the company’s Open Network Environment (ONE) strategy by providing sophisticated wide area networking (WAN) orchestration capabilities. These capabilities will allow service providers to improve both the programmability of their networks and the utilization of existing network assets across the IP and optical transport layers.

“The Cariden acquisition reinforces Cisco’s commitment to offering service providers the technologies they need to optimize and monetize their networks, and ultimately grow their businesses,” said Surya Panditi, senior vice president and general manager, Cisco’s Service Provider Networking Group. “Given the widespread convergence of IP and optical networks, Cariden’s technology will help carriers more efficiently manage bandwidth, network traffic and intelligence. This acquisition signals the next phase in Cisco’s packet and optical convergence strategy and further strengthens our ability to lead this market transition in networking.”

The acquisition of Cariden exemplifies Cisco’s build, buy, and partner innovation framework and is aligned to Cisco’s strategic goals to develop and deliver innovative networking technologies and provide best-in-class solutions for customers, all while attracting and cultivating top talent.

Upon the close of the acquisition, Cariden employees will be integrated into Cisco’s Service Provider Networking Group, reporting to Shailesh Shukla, vice president and general manager of the company’s Software and Applications Group. Under the terms of the agreement, Cisco will pay approximately $141 million in cash and retention-based incentives in exchange for all shares of Cariden. 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.


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