IT corporation Cisco buys Virtela project for $610 million

IT corporation Cisco buys Virtela project for $610 million

Cisco announced the early completion of an agreement to purchase a start-up for the development of Virtela SDN (software-defined networking) for $610 million.


Cisco is an American international company engaged in mass production of network equipment. As the representative of Cisco Rob Salvano points out, after the agreement Cisco and Virtela will be able to start joint developing of solutions for the next generation of SD-WAN. Such developments should make it easier for users to manage their networks, and also more effectively meet customer needs, accelerating the transition of Cisco to a business model based on next-generation software.

Cisco has not entered into large contracts since the deal with AppDynamics, which cost for the company $3.7 billion. The purchase of Virtela should be a step towards the creation of network devices that will manage the computer networks with the highest efficiency.