Cisco acquires Meraki for its cloud-based Wi-Fi and BYOD management technology. Cisco (NASDAQ:CSCO), true to its M&A-heavy strategy, liked the startup so much it bought the company.
In IT Blogwatch, bloggers look on the deal with envious eyes.
Your humble blogwatcher curated these bloggy bits for your entertainment.
John Ribeiro jauntily reports:
The acquisition of [the] privately-held company...complements and expands Cisco's strategy...to simplify network management, help customers empower mobile workforces, and generate new revenue opportunities for partners, Cisco said.
Cisco is targeting Meraki's technology...at midmarket businesses...who want to manage their networks from the cloud. MORE
Simon Sharwood adds:
Meraki attracted much attention in...2006, thanks to Google investing in...its products that made it possible to dole out a few megabytes of free WiFi. ... Meraki has since added many other enterprise networking products [including] switches, security appliances...managed through a web-based interface and some cloudy goodness.
The acquisition is Cisco's second cloudy purchase inside a week: last Friday it hoovered up Cloupia. MORE
Meraki CEO Sanjit Biswas breaks the cone of silence:
When we started out six years ago, we were three guys at MIT wondering where our bootstrapped venture would take us. ... We had some exciting ideas...but hadn't figured out how we would connect the dots. Fortunately...our customers helped guide the way.
So, when Cisco approached with an acquisition offer a few weeks ago, our initial reaction was..."thanks, but we're planning to...take Meraki public". ... They had been hearing from customers, partners and analysts that Meraki had built something truly different. ...the price was an attractive offer and gave us credit for high margins, high growth and great future execution. ...the Cisco team also understood how important our team, culture and environment are to us. MORE
And Josh Constine has background:
For those unfamiliar, Meraki began as a research project at MIT in 2006. It provides...on-premise mesh Wi-Fi networking and security devices plus the software to manage them...without a bulky IT department. It’s also designed to help businesses adapt as [they go BYOD].
Meraki...will become the core of Cisco’s new San Francisco Cloud Networking Group office. The deal is expected to close in Cisco’s fiscal Q2...which ends in January. ... At a price of $3.6 million cash per employee, the exit is massive success. MORE
Meanwhile, VC Doug Leone says why he invested:
Six years ago...[the] benefits were obvious: the ability to scale without wires, low cost of entry, ease of use, and network analysis tools to...maximize revenue. ... It was so easy to use, I set up a wireless network myself in minutes. You just plugged in the box and it worked.
It was amazing to watch the founders grow into leaders. ... They made very few mistakes. They executed, quickly refined a best of breed product, and expanded into complementary markets. ... Now Cisco gains a new growth driver. MORE