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Cisco Acquires NewScale Inc To Support Cloud Strategy

Cisco Systems announced its decision to buy the privately held company NewScale Inc, to boost its efforts to gain a stronger hold in the cloud-computing sector.

NewScale Inc, based in San Mateo, California, was founded in 1999, and at present has around 80 employees. It functions as an online storefront for IT professionals to manage and purchase web-based business applications.

As was the case with Amazon Web Services, this latest acquisition by the computer networking giant is believed to facilitate customers building, and expanding their own private cloud infrastructure according to their needs on the basis of standardised service options.

Cisco’s senior vice-president Parvesh Sethi, addressing this latest development, said in a statement, "With the acquisition of newScale, Cisco will be able to accelerate the deployment of cloud services through a service catalog and self-service portal that allows customers to easily manage their IT infrastructures.

Experts are linking this recent purchase by Cisco with their age-old strategy to drive more traffic through the Internet. The more traffic there is, the higher the demand for their networking equipment.

According to Cisco, the deal should be closed within its fiscal year 2011. However, an official statement disclosing the financial terms is yet to come.