Cisco to buy Springpath for $320m
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Cisco and Springpath have apparently been working together for a while, and this will let Cisco bring those teams in-house rather than having to build them from scratch.
Springpath’s specialty is hyperconvergence, and it has developed a distributed file system aimed at enabling server-based storage services.
Hyperconvergence is a term I’m still coming to grips with. Basically, it seems to entail taking all the virtual stuff we’ve seen driving the cloud revolution, and combining it back with the hardware again to condense everything back down into a one-stop-shop appliance that retains the virtualization flexibility provided by the hypervisor and such despite looking more and more like, well, a mainframe…
But I digress. Cisco’s move is another step down the path toward generating value from the software more than from the hardware, and $320 million is of course petty cash for them. The deal is expected to close in Cisco’s fiscal Q1/2018, which I believe would be by the end of October 2017.
Questions & Answers
Q.What is Springpath's primary specialisation that makes it attractive to Cisco?
What is Springpath's primary specialisation that makes it attractive to Cisco?
Springpath specialises in hyperconvergence, developing a distributed file system to enable server-based storage services. This technology combines virtualisation flexibility with hardware, creating a 'one-stop-shop' appliance.
Q.When is the acquisition between Cisco and Springpath expected to be finalised?
When is the acquisition between Cisco and Springpath expected to be finalised?
The deal is projected to conclude in Cisco's fiscal Q1/2018. This timeframe would place the expected closing date around the end of October 2017.
Q.What strategic benefit does Cisco gain by acquiring Springpath rather than developing the technology in-house?
What strategic benefit does Cisco gain by acquiring Springpath rather than developing the technology in-house?
The acquisition allows Cisco to integrate Springpath's teams directly, avoiding the need to build the necessary expertise from scratch. This move supports Cisco's strategy of generating value increasingly from software.
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