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.