Cisco Systems Expands Cloud Business with Metacloud Acquisition

Metacloud Acquisition

Cisco Systems recently announced plan to acquire privately held Metacloud, which specializes in private clouds based on the OpenStack-based cloud computing platform.

Based in Pasadena, California, Metacloud provides private cloud solutions to large organizations with a OpenStack-as-a-service model, delivering ready-to-use private clouds in customer's own data centers. Financial terms of the deal were not disclosed. The deal is expected to be complete before the end of next month. Once the deal is completed, Cisco will integrate Metacloud's employees into its Cloud Infrastructure and Managed Services group.

Cisco's Intercloud Strategy

The primary goal of the Metacloud acquisition is to accelerate Cisco's Intercloud strategy, which was unveiled in March. At that time, Cisco would spend over $1 billion to expand and strengthen its cloud business over the next two years, which also include building an OpenStack-based “network of clouds” with some key technology partners.

Cisco announced its Intercloud strategy in March and has since made several iterations of its cloud business, which involved a few platform built and bought. It acquired several companies such as Cloupia for converged IT management. It also partnered with several companies such as Telestra, Canopy, Dimension Data, Sungard Availability Services, Johnson Controls, Wipro and RedHat to expand it IaaS offerings and accelerate the Internet of things concept. Intercloud is part of Cisco's Data Center Group, which has witnessed a massive growth in the last couple of years.

Cisco's cloud services include Software-as-a-Service (SaaS) offerings such as Cisco Cloud Web Security, Meraki, and WebEx. In addition the company also offers cloud building services through its own Unified Computing system (UCS), NetApp and VCE Vblock computing systems (a joint venture with EMC and VMware).

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