Cisco has invested some $100 million in a networking startup by the name of Insieme, with an option to buy the firm for up to a further $750 million secured.
Insieme was actually founded by three Cisco employees, and designed to be purchased by the computer networking giant, a procedure known as a "spin-in". It's hoped that Insieme will boost Cisco's portfolio in terms of software-defined networking (SDN).
SDN enables the firmware of switches and routers to be remotely accessible by third-party software, and allows for remote modification, an efficient and cost effective solution which bolsters network agility.
In an internal memo regarding SDN, Cisco stated: "Insieme's product development efforts are complementary to that of Cisco's current and planned internal investments. Insieme and other internal programs will be components of Cisco's broader programmability framework. These types of investments have strongly benefitted Cisco in the past, and we will continue to look for similar ways to complement our internal development capabilities."
Some outsiders are pondering why Cisco is turning to Insieme to create new technology, rather than its normal operational process. Cisco, however, remains confident in its abilities.
A Cisco spokesman said: "Seventy per cent of the world's networks are Cisco, it makes sense that when customers talk about how to program them they'd talk to Cisco. Our strategy has always been we will build, we will buy, and we will partner."
Source: New York Times