Meraki was mostly known for its wireless LANs, but small businesses were using it to connect remote offices to cloud apps, too.All told, when Viptela went looking for a sale, it wasn't in a strong negotiating position.Even so, most analysts say Viptela's technology will be a good fit for Cisco's iWAN products, helping it sell more networking software to enterprises and service providers.
It allows global companies to build carrier agnostic, policy-controlled and cost-effective WANs. Why Cisco needs SD-WAN vendor Viptela
Capital raised: $33.5 million with a valuation of more than $500 million. I’ve known him for many years, and he is one of the smartest executives in networking, so Cisco gets some solid leadership and talent as part of the deal. Viptela provides technology for virtualization of the Wide Area Network (WAN). Another interesting option is that the Viptela solution could be deployed and run on the Cisco ISR, giving customers a simpler, cloud-managed SD-WAN solution that leverages existing hardware.
It had landed 25 Fortune 500 enterprises as customers and made deals with carriers like Verizon and Singtel that used its product to sell cloud networking products to other big companies, it said.One person told us Viptela had grown itself into about $25 million in revenue, and that based on that, Cisco's price was more than fair. The SD-WAN market is hot, with all of the usual networking suspects (Cisco, VMware, AT&T, Citrix, etc.) It allows global companies to build carrier agnostic, policy-controlled and cost-effective WANs.
Viptela has been deployed at thousands of sites by more than 25 Fortune 500 enterprises; and major carriers including Verizon and Singtel are using Viptela to deliver managed SD-WAN services.
Viptela was founded by 2012 by former Cisco engineers, some of them hailing from the Indian sub-continent.
Viptela Founders Launch Multicloud Networking Start-Up. The two brothers who founded software defined-WAN ( SD-WAN) vendor Viptela before it was bought by Cisco for $610 million in 2017 are launching a new company focused on cloud networking and backed by $30 million in funding.
In its last earnings call, Cisco reported that deferred revenue has grown 51 percent—driven largely by collaboration, security and networking through Cisco ONE—and Viptela will certainly be accretive to that.The purchase will bring a number of ex-Cisco employees back to the mothership. Last year, Cisco was one of the lead investors in a $27 million round of funding for VeloCloud.
Notable investor: Sequoia Capital.
Network Insider Live Webinar Tuesday, January 21, 2020 10:00 am Pacific Standard Time (San Francisco, GMT-08:00) Today, moving applications to the cloud requires faster, more reliable connectivity. At the time he was hired, he was expected to be a longtime CEO.The two cofounders were having disagreements, sources told us.
"A $610 million exit?
Viptela co-founder Atif Khan served as Viptela's vice president of technology and solutions.
"Everyone that came on near their unicorn-level valuation, they got caught. He was famous in his circle as a longtime Cisco engineer who became the CEO of a contentious joint venture between Cisco and EMC known as VCE.When the relationship between Cisco, EMC, and VMware devolved, EMC bought out Cisco's interest in VCE. "Cisco also had a couple of competing products, such as Intelligent WAN, or iWAN, and it bought a startup called Meraki for $1.2 billion a few years before. as well as other partner offers and accept our
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