Cisco's eternal appetite for acquisitions announced what the next course will be. The network technology giant will be buying Viptela and combining the San-Jose-based vendor's SD-WAN technology with its own efforts and moving further toward a software model that produces more reliably recurring revenue.
SD-WAN is emerging as this year's big networking, taking the fabric of software defined networking and turning it into an enterprise-focused product. SD-WANs promise to redefine the way enterprises build and operate their wide area networks, making it easier to to hook up branch locations, data centers, and company headquarters with flexible infrastructure.
Cisco will be paying $610M in cash and assumed equity awards. Viptela's talent will join the company's Enterprise Routing team, working with them to enhance Cisco's SD-WAN technology with their own. The deal is expected to close in the second half of 2017.