Cisco to Grow Computing Business by Acquiring Springpath for $320 Million

Data Center Networking

**Editor’s Note: Please click here for a recap of the biggest channel-impacting merger and acquisition news from July.**

Cisco is acquiring Springpath, which has developed a distributed file system purpose-built for hyperconvergence that allows server-based storage systems. The purchase price is $320 million.

Cisco said the acquisition will allow it to continue to deliver next-generation data center innovation to its customers. The deal is expected to close in Cisco’s first quarter of fiscal year 2018, following customary closing conditions and regulatory review.

Cisco's Kaustubh Das

Cisco’s Kaustubh Das

Kaustubh Das, Cisco’s vice president of product management for HyperFlex, an integrated hyperconverged infrastructure system, tells Channel Partners the acquisition is expected to have minimal impact on existing Cisco partners.

“Cisco’s acquisition of Springpath provides our partners greater confidence in positioning Cisco HyperFlex systems and enables them to be trusted partners to end customers,” he said. “Springpath’s go-to-market strategy was to serve as an OEM supplier to Cisco without any go-to-market strategy of their own. The primary outlet for Springpath’s technology was through the Cisco HyperFlex platform.”

The acquisition is the culmination of a longstanding strategic relationship between Cisco and Springpath. The companies have worked together since early 2016 to launch HyperFlex.

Since then, the companies have aligned on product development and go-to-market strategies.

“This acquisition is a meaningful addition to our data-center portfolio and aligns with our overall transition to providing more software-centric solutions,” said Rob Salvagno, Cisco’s vice president of corporate business development. “Springpath’s file system technology was built specifically for hyperconvergence, which we believe will deliver sustainable differentiation in this fast-growing segment. I’m excited to be able to provide our customers and partners with the simplicity and agility they need in data-center innovation.”

“The acquisition of Springpath is not a fundamental shift for Cisco, as we’ve already been licensing IP from Springpath — all we’re doing is bringing Springpath IP in-house,” Das said. “Therefore, this does not alter the partner engagement, development and selling models of converged infrastructure solutions nor does the governance for joint solution development change. We are 100-percent committed to integrated infrastructures and our existing partner relationships.”

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