Cisco to Buy Cloupia for $125 Million

With cloud computing driving the transition to converged infrastructure, the need for simplified management systems across compute, storage, network and virtualization functions is increasing. To help address this need, Cisco Systems, Inc. announced its intent to acquire privately-held Cloupia, Inc., a Santa Clara, CA-based software company that automates converged data center infrastructure – allowing enterprises and service providers to simplify the deployment and configuration of physical and virtual resources from a single management console.

Cloupia’s infrastructure management software enhances the Cisco Unified Computing System (UCS) and Nexus switching portfolio with a single ‘pane-of-glass’ view into the automation of compute, network, storage, virtual machine, and operating system resources. When combined with data center management solutions like Cisco UCS Manager, Cloupia allows enterprises and service providers to seamlessly manage pools of computing power, network services, storage and virtual machines as a unified whole in order to deploy and deliver IT services more rapidly and at lower costs.

"Cisco’s data center strategy is based on the premise of making it easier for customers to deploy a unified and integrated infrastructure that is efficient, fast, and flexible," said David Yen, SVP and GM, Cisco Data Center Business Group. "This strategy involves the delivery of the industry’s most comprehensive data center networking portfolio, which includes physical and virtual products that support multiple hypervisors and storage stacks. The addition of Cloupia’s automation software enhances the efficiency of such unified data center infrastructures, helping to accelerate the transition from physical to cloud environments more quickly and effectively."

Mergers, acquisitions and investments are a part of Cisco’s build, buy, and partner innovation framework and support our strategy of providing solutions for customers. The Cloupia acquisition aligns to Cisco’s strategic goals to develop innovative data center, virtualization and cloud technologies.

Upon the close of the acquisition, Cloupia employees will be integrated into Cisco’s Data Center Group.

Under the terms of the agreement, Cisco will pay approximately $125 million in cash and retention-based incentives in exchange for all shares of Cloupia.

The acquisition is subject to various standard closing conditions and is expected to be complete in the second quarter of Cisco’s fiscal year 2013.