Cisco buys Tail-f Systems to boost network virtualisation

Telecoms

by CBR Staff Writer| 18 June 2014

Swedish automation specialist snapped up .

Cisco has announced plans to buy Sweden based networking software maker Tail-f for $175m to boost its network management and automation capability.

Tail-f makes network service programmability solutions for traditional and software-defined networks (SDN).

Cisco plans to integrate Tail-f's network service orchestration technology to simplify and automate the provisioning and management of both physical and virtual networks.

Tail-f's offering can be used for layer 2 or layer 3 VPN provisioning, and networking based on network function virtualisation (NFV) and network programmability.

Cisco Corporate Development senior vice president Hilton Romanski said with a rapidly increasing number of people, devices, and sensors connecting across the Internet of Everything (IoE), service providers require new capabilities to deliver value-added, cloud-based services and applications.

"Our goal is to help to eliminate the bottleneck caused by operational complexity within the network," Romanski said.

As part of the deal, Cisco will pay $175m in cash and retention-based incentives in exchange Tail-f shares.

Following the acquisition, Tail-f employees will join Cisco's Cloud and Virtualization Group, reporting to Gee Rittenhouse, vice president and general manager.

The acquisition is expected to close in the fourth quarter of fiscal 2014.

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