In a bid to deliver next-generation data centre innovation to its customers, global networking company Cisco has acquired California-based hyperconvergence software leader Springpath in an all-cash deal of $320 million.
Springpath has developed a distributed file system purpose-built for hyperconvergence that enables server-based storage systems.
The two companies have worked together since early 2016 to launch HyperFlex, the industry's first fully integrated hyperconverged infrastructure system.
"This acquisition is a meaningful addition to our data centre portfolio and aligns with our overall transition to providing more software-centric solutions," said Rob Salvagno, Cisco Vice President, Corporate Business Development.
The acquisition is expected to close in Cisco's first quarter of fiscal year 2018. "Springpath's file system technology was built specifically for hyperconvergence, which we believe will deliver sustainable differentiation in this fast-growing segment," Salvagno added.
The acquisition of Springpath is strategic to Cisco's data centre portfolio as it transitions to delivering software-centric solutions to its customers.
This news comes after Cisco recently said it is committed to invest and hire more in India and the US. In India, the company - which began operations in the country in 1995 - saw profits grow 340 percent in the 2016 financial year on the back of Smart City initiatives and its partnership with Reliance Jio.
Cisco employs almost 12,000 people across its various centres in New Delhi, Mumbai, Bengaluru, Chennai, Pune, Kolkata, Hyderabad and Gurugram.
Published Date: Aug 22, 2017 02:27 pm | Updated Date: Aug 22, 2017 02:27 pm