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VeloCloud and CISCO

VeloCloud and CISCO - VeloCloud a startup in the SD-the WAN, raised $ 27 million. In the third round from several investors, including the CISCO.

According to Michael Wood, Vice President of Marketing VeloCloud Networks, the main investors began March Capital Partners and Cisco Investments. Another partner is kept secret.
VeloCloud and CISCO

VeloCloud and CISCO

"The main advantage VeloCloud and CISCO is the possibility of zero-touch deploymenta, Wood says. Software running on the x86-servers, which are used as CPE (Customer Premises Equipment) in the branches. These are connected to the CPE software gateways VeloCloud, located in the Amazon Web Services (AWS) cloud data centers, Equinix, and traffic exchange points (Internet eXchange, IX). In this case all CPE configuration is performed automatically according to set policies.

Founded in 2012, the company has VeloCloud customer base consisting of more than 100 companies, including NTT Data Corp, Deutsche Telekom AG, which use the service for the optimization of video, voice and unified communications. VeloCloud and CISCO provides quality of service regardless of whether the channels are being used or private Internet access.

The only way to ensure the quality of services for the branch network, to purchase private channels. But using our solutions, you can monitor the QoS parameters and to provide traffic shaping, even when using the Internet Connection. The technology allows you to prioritize traffic and allocate between different types of connections

Michael Wood, Vice President of Marketing at VeloCloud

VeloCloud and CISCO IWAN

Cisco Investing in VeloCloud show potential expansion opportunities IWAN - SD-WAN solutions from Cisco, in the direction of the Cloud Network Services.

Foreign corporate customers implement VeloCloud and IWAN to build (SD-WAN) program-controlled the WAN-networks. However, VeloCloud and CISCO aimed at meeting the growing demand for cloud-based network services, such as monitoring and WAN traffic management (traffic steering). IWAN makes no cloud services.

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Seamus McGillicuddy, an analyst at Enterprise Management Associates (EMA) commented: "I think that Cisco is considering VeloCloud as a potential partner, or even as a goal of future acquisitions".

According to analyst IDC, Cisco investment in VeloCloud is a vivid example of hedging . If IWAN be able to achieve considerable success in the SD-WAN market, then Cisco will not be necessary in decisions VeloCloud. But, in the case of opposite developments (if they prevail cloud solutions), then Cisco have an excellent option in the form of purchases of a startup.

The increase in the provision of software and cloud services is one of the key focuses of Cisco. Therefore, the company adapts to changes in the industry, which is moving away from the oriented architectures equipment is the largest part of the vendor's business. Examples of this activity are the following companies:
  • In 2013, it announced Application Centric Infrastructure (ACI) - SDN-framework from Cisco;
  • In 2012, the acquired company Meraki, which provides software to manage wireless networks in the form of cloud service;
  • Cisco recently increased its presence in the cloud-based security solutions on the market. In June 2015 the company acquired OpenDNS for $ 635 million.;
  • In November, Cisco will report on progress in achieving its goal. It reported quarterly 36-percent growth in revenues from services provided to subscribers.
VeloCloud sells its software on a subscription model, making the company's business fits well with the Cisco long-term strategy.

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