August 23, 2017

Cisco acquires Springpath to advance its HCI prowess

A deal worth USD 320 million has been agreed, with the acquisition set to close in Cisco’s first financial quarter of 2018.

Security firm

American networking heavyweight Cisco this week announced that it plans to purchase California based software startup Springpath for a total sum of USD 320 million. According to Cisco, it will implement Springpath’s hyperconvergence expertise towards building its data center portfolio and growing its core computing business.

Springpath gained popularity in tech circles when it developed its distributed file system for hyperconvergence that enables server based storage systems. Founded in 2012, the firm was involved in a Series C funding round led by Cisco two years later. Following this, the two companies worked together to launch the HyperFlex platform, which combines Cisco’s computing and networking platforms with Springpath’s software-defined storage solution.

The acquisition is expected to boost Cisco’s hyperconverged infrastructure capabilities, with VP of Corporate Business Development at Cisco, Rob Salvango, stating:

This acquisition is a meaningful addition to our data center portfolio and aligns with our overall transition to providing more software-centric solutions. Springpath’s file system technology will deliver sustainable differentiation in this fast-growing segment.

2017 has seen Cisco embark on an acquisition spree, with Springpath joining the likes of AI platform developers MindMeld, SD-WAN startup Viptela, data analytic firm Saggezza and application management provider AppDynamics in becoming a Cisco subsidiary.