Network equipment maker
Cisco Systems, Inc.
) recently acquired Tail-f Systems, a Swedish virtualization
startup for $175 million to bolster its cloud-services portfolio.
The purchase price includes cash and retention-based incentives.
The deal is likely to close in the fourth quarter of fiscal
2014. Per the deal, Tail-f's 75 employees will join Cisco's cloud
and virtualization group.
Tail-f, a Stockholm-based privately held company, is a
networking software maker and offers network service orchestration
products for both traditional and virtualized networks. Tail-f's
network service orchestration solutions, including its Network
Control System ("NCS"), focuses on the telecom networking component
operations support system ("OSS"), allowing service operators to
provision their applications, network services and networking
devices with a single software tool.
Today, OSSs have to handle constantly rising traffic volumes and
extensive infrastructure, which have made the management of network
operators costly and difficult. Tail-f's technology helps in
simplifying operations and replacing the conventional,
time-consuming, high-touch provisioning model with a real-time,
automated approach. In short, it virtualizes telecom infrastructure
in the cloud by virtualizing and reorganizing the OSS. Tail-f had
raised $6.3 million from investments by SEB Venture Capital.
As more and more people, devices, and sensors are
connecting across the Internet of Things (IoT), Tail-f will help
Cisco bolster its cloud and virtualization offerings and improve
its network management and automation technology. The orchestration
technology will simplify and automate the provisioning of both
traditional and virtual networks.
In addition it will carve a path for Cisco to gain access to
) Domain 2.0 initiative, an attempt to virtualize the AT&T
service network with software-defined networking ("SDN") and
network functions virtualization ("NFV"). Tail-f is one of the six
suppliers for Domain 2.0, with the list also including Ericsson,
Metaswitch Networks, startup Affirmed Networks,
Cisco currently holds a Zacks Rank #2 (Buy).
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