Cisco are currently underway in purchasing Springpath (a software development company) for approximately $320 million. They began their investment in Springpath during January 2016, at the time Springpaths overall funding was over $34 million.
Before this deal occurred, Cisco has taken on a new CEO, Terry Cunningham in May 2015. Before this position, he had previously ran EVault for tech giant Seagate. The company however brought Evault back as an in house process. This ultimately brought Cunningham to his position at Cisco.
When the partnership was announced, Springpath went full steam ahead in terms of it’s commitment to Cisco and withdrew its marketing and selling efforts for Halo software. Springpath were proven to be right in their decision making, with Cisco recently claiming it’s aim to acquire Springpath.
“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 was built specifically for hyperconvergence, which we believe will deliver sustainable differentiation in this fast-growing segment.” Stated Cisco’s business Vice President Rob Salvagno.
Cisco’s current competition include HCIA market leaders Nutanix and Dell EMC. It can be assured that competition will be fierce, other soft and hardware companies, including Maxta, Pivot3, and Scale Computing are all players Cisco will find themselves in comparison to.
A total investment of $320 as well as with-held enticers all seem to add up to a positive exit for investors. Springpath’s funding has gone up tenfold, from $34m to over $300m with Cisco’s recent interest. The acquisition should complete in the first quarter of Cisco’s fiscal 2018.
Meanwhile, Cisco have kept busy investing into Indian corporations. During the last year, they’ve invested in over two dozen companies and have also announced that they will offer $100 to help startups.
