Cisco To Acquire ClearAccess

Cisco Systems has announced it is planning to acquire ClearAccess, a private network management company.

The deal, which should be completed by the end of Cisco's fiscal year in July 2012, is only concerning the software of ClearAccess, the hardware will remain as Smart RG Inc.

The acquisition of ClearAccess will help Cisco deal with the large amounts of video and data traffic demanded by their mobile service providers. The mobile devices; smartphones to tablets, e-readers to security systems, is putting the wireless networks under a significant amount of strain.

The Clear Access software will be used as part of the Cisco Prime network management service. Cisco Prime aims to give service providers cloud-based tools that effectively manage overloading networks and reduce video and data traffic congestion.

Cisco will be able to utilise the ClearAccess software to quickly extend and repurpose more network management and advisory services. This acquisition could have big consequences for Cisco's router business.

The market share in edge routers held by Cisco has been declining from over 50 per cent to around 47 per cent in recent years. It is hoped that the acquisition of ClearAccess could help reverse this trend.