Cisco Acquires Metacloud for OpenStack as a Service Tech

In a surprise move, Cisco today announced its intent to acquire privately-held OpenStack vendor Metacloud. Financial terms of the deal are not being publicly disclosed at this time.

Metacloud is venture capital backed by Silicon Valley Bank, Pelion Ventures, UMC, Canaan Partners, Storm Ventures, and AME Ventures. In May of this year, Metacloud closed its Series B round of funding, which brought in $15 million. Metacloud’s Series A round funding was in June of 2013 and brought in $10 million.

Metacloud has sought to differentiate itself in the crowded market for OpenStack services by focussing on private OpenStack cloud deployment as a service. When the deal closes, Metacloud will become part of the Cisco Cloud Services portfolio, which is run by Faiyaz Shahpurwala.

Cisco has been an active participant in the OpenStack market since 2011, which is not coincidentally the same year that Metacloud was founded. Cisco actively participated in the OpenStack Bexar release in 2011 and then went on to become a founding member of the OpenStack Foundation, which was formed in 2012.

Cisco also has multiple OpenStack offerings already in the market. The Cisco OpenStack Edition was first announced in October of 2012, providing an optimization for running OpenStack on Cisco UCS servers. In 2013, Cisco announced its OpenStack accelerator packs, providing bundled OpenStack on Cisco gear.

Earlier this year, Cisco pledged to invest $1 billion as part of its global Intercloud effort to build a network of federated clouds.

Cisco expects that the new Metacloud acquisition will help in the acceleration of the Intercloud effort.

“To enable greater business agility and lower costs, organizations are shifting from an on-premise IT structure to hybrid IT – a mix of private cloud, public cloud, and on-premise applications,” Hilton Romanski, senior vice president, Cisco Corporate Development, said in a statement. “We believe Metacloud’s technology will play a critical role in enabling our customers to experience a seamless journey to a new world of many clouds, providing choice, flexibility, and data governance.”

Sean Michael Kerner is a senior editor at Enterprise Networking Planet and Follow him on Twitter @TechJournalist.

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