Cisco buys startup Viptela to boost its SD-WAN portfolio

Viptela's solutions allow its clients to manage connections through wide area networks, such as broadband, cellular or satellite systems.

In line with a clear commitment to software-based services compared to its traditionally hardware-based activity, Cisco has started the purchasing process Viptela, a software-based networking startup, in an operation that would be around $610 million.

The company has assured that this purchase “supports Cisco's strategic transition towards software-centric solutions that offer predictable and recurring revenue.”

Cisco already offers SD-WAN offerings in cloud installations, including Cisco Intelligent WAN and Meraki SD-WAN. Now, according to Rob Salvagno, Vice President of Business Development at Viptela, the acquisition will allow the company to provide an alternative for companies looking for a solution that is “easy to implement and simple to manage.”

Viptela's solutions allow users to manage connections through wide area networks, such as broadband, cellular or satellite systems. Based in San José (California), its clients include Verizon, Fifth Third Bancorp and Singapore Telecommunications. Their software is hosted on remote servers and provided as a service to customers.