Cisco Took Over Observable Networks, A Network Security Based Company
The series of Cisco’s acquisition continues. It has again marked its initials in one more company that belongs to enterprise security space. Tapping the growing demand for cyber space security on the grounds of rising incidents of malicious hacking, cyber threats, and breaches among the businesses that have shifted their systems to the cloud-based infrastructure could be the prime motive of the tech-giant.
St. Louis-based Observable Networks is acquired by the IT giant Cisco. The company offers a real-time network monitoring to assist IT department of the companies to identify the threats and stay secured from the security breaches, specifically on the cloud deployments. The conditions and deal terms aren’t disclosed. Observable Networks has been into action since 2011. It was established by present CTO of the company, Patrick Crowley and so far it has bagged $5 Million funding. The company in the last round of funding was valued at $16 Million last year. The CEO of Observable Networks Bryan Doerr stated that all employees will join Cisco as a part of the deal.
The company’s (ObservableNetworks) forensics applications that are priced by a SaaS model depending on the business size and the endpoints will be the part of the Stealthwatch solution, Cisco’s Security Business Group directed by David Ulevitch. Ulevitch was the founder of security startup named OpenDNS that was acquired by Cisco in 2015 with a closing amount of $635 Million.
Cisco is a leading brand in the global network security market. It has closed several acquisitions to accomplish the aspects of the business. Cisco’s most recent deal with the inclusion of OpenDNS comprises CloudLock for $293 Million and Lancope for $453 Million. In this year in June, it has also revealed a new project to detect malware in an encrypted traffic based on cloud security services.
It is estimated that the cost of damage owing to cyber crime will reach $6 Trillion by 2021 and companies are likely to spend approximately $1 Trillion in the coming years to diminish the concern.
The acquisition is important not because it emphasizes the current concern in security solution, and ensuring amalgamation in the space, it also focuses the verity that Cisco, a company that creates server’s routers and switches, is continuing to construct its dealing in cloud services and applications as new companies shift their businesses into hybrid architectures or cloud-based.
Other purchases in the cloud-based security market comprise―Adallom, purchased by Microsoft, Palerra, acquired by Oracle, and Hexadite, acquired by Microsoft.