Cisco Bolsters Telecom Mobile Management, Acquires Cariden

Cisco wants to help telecoms better manage the explosion of mobile and internet traffic.

By Pedro Hernandez | Posted Nov 29, 2012
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Cisco is delving deeper into telecom networking.

The IT giant today announced that it is acquiring Cariden, a Sunnyvale, Calif.-based network design and traffic management software specialist, for $141 million.

Cariden's technology will aid Cisco in Cisco acquires Caridentargeting a telecommunications industry that's currently beset by the explosive growth of smartphones and tablets. Cisco plans to fold the Clariden's tools for IP/MPLS (Multi-Protocol Label Switching) networks into its Cisco's Service Provider Networking Group.

Clariden's tech will also lend a boost to Cisco's nLight technology "for IP and optical convergence," according to the companies.

The end result will enable Cisco to aid telecom customers in improving visibility, management and efficiency, says the senior vice president of Cisco's Service Provider Networking Group, Surya Panditi.

"Given the widespread convergence of IP and optical networks, Cariden's technology will help carriers more efficiently manage bandwidth, network traffic and intelligence.  This acquisition signals the next phase in Cisco's packet and optical convergence strategy and further strengthens our ability to lead this market transition in networking," informs Panditi in a company statement.

The deal will potentially strengthen Cisco's position as the market leader in IT networking by establishing deeper connections with big telecoms and ISPs. "Customers include [Verizon], Telstra, SingTel, Swisscom and Deutsche Telecom. Cariden claims the large majority of global tier-1 ISPs [which] rely on the company's products for network reliability and performance," inform ISI analysts Brian Marshall and Stephen Patel in a research note.

The Clariden buy is also the latest evidence of Cisco's software ambitions, which neatly aligns with its pursuit of SDN-enabled tech. Earlier this month, Cisco acquired Meraki, a networking vendor with and SDN-like approach to networking, for $1.2 billion.

"Our research has consistently highlighted the increasing importance of management/optimization software for networks and we believe the acquisition reflects CSCO's desire to add more software-oriented capabilities. We also believe Cariden's orchestration software can complement CSCO's efforts in software-defined networking (SDN)," state Marshall and Patel.

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