Cisco is acquiring Waltham, Massachusetts-based cloud security provider CloudLock for $293 million, signaling the vendor's ongoing desire to become a bigger player in the cloud infrastructure market.
Under the terms of the agreement, Cisco assumed equity awards, plus additional retention-based incentives for CloudLock employees who join Cisco.
What CloudLock brings to the table for Cisco is its cloud access security broker (CASB) technology that provides enterprises with visibility and analytics around user behavior and sensitive data in cloud services, including SaaS, IaaS and PaaS.
By acquiring CloudLock, Cisco will be able to enhance its security portfolio and build on its Security Everywhere strategy, which is designed to provide protection from the cloud to the network to the endpoint.
"CloudLock's unique cloud-first, platform and API-based approach means that they're able to deliver an incredibly detailed level of understanding of how users are sharing data, what's being shared, and potential security risks associated with sensitive information that shouldn't be distributed," said Rob Salvagno, VP of corporate business development for Cisco, in a blog post. "They do this while remaining invisible to an end user who is accessing the cloud."
While the majority of security platforms have been premises-based, CloudLock's solution takes into account the fact that the emergence of more data, devices and a decentralized approach to business are driving businesses to look at cloud-based solutions.
CloudLock's CASB technology helps customers understand and monitor user behavior and sensitive data in cloud applications, providing greater visibility, compliance and threat protection regardless of whether these applications are fully sanctioned by IT or not.
But this is not just another grab and run technology acquisition. Already, CloudLock has attracted 700 customers, including Fortune 500 companies, in less than five years.
Upon completion of the deal, Cisco said the CloudLock management team will join Cisco's Networking and Security Business Group under Senior Vice President and General Manager David Goeckeler. After meeting customary closing conditions, the acquisition is expected to close in the first quarter of fiscal year 2017.
Similar to the earlier acquisitions, the CloudLock purchase will further solidify Cisco's position in the cloud infrastructure market.
According to a recent Synergy Research report, HPE, Cisco and Microsoft continue to lead in the three main segments – private cloud hardware, public cloud hardware and cloud infrastructure software. Although HPE led Cisco in the first quarter, the two vendors gained market share in the quarter.
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