Cisco to acquire ContainerX
Thu 1 Sep 2016
Cisco announced its intent to acquire ContainerX, a privately-held Silicon Valley startup focused on providing container integration technology to clients. ContainerX represents Cisco’s first foray into the growing container market.
In the announcement of the deal on the Cisco blog, Rob Salvagno, head of Cisco’s M&A team, outlined the ways that the acquisition of ContainerX can help Cisco move forward to integrate next-generation data center solutions.
Salvagno noted that enterprises are currently experimenting with adopting container solutions but are concerned about security and manageability.
“Containers provide an easy, flexible way to build, test, deploy, and move applications across a variety of environments, including public clouds, private clouds, and hybrid environments,” Salvagno stated, adding, “Cisco is uniquely positioned to integrate the next generation data center with cloud-native and containerized environments that customers are demanding, all while still delivering advanced features such as security, analytics and management.”
The acquisition of ContainerX is intended to provide existing customers the technology and expertise required to transfer to container-based solutions.
While ContainerX CEO Kiran Kamity admitted to “unfettered excitement coupled with gut-wrenching anxiety” related to the news, his message is mostly positive as well. He stressed the advantage that a partnership with Cisco can provide ContainerX, as Cisco can provide reach and distribution channels that a small company cannot access.
ContainerX has plans to continue and accelerate growth within Cisco, as Kamity noted, “This is not an ‘exit’, but more the beginning of an accelerated evolution for ContainerX. There is so much to be done in the container space, and we are, as an industry, just getting started.”
The news of the acquisition comes just after news of a projected 7% global workforce reduction for Cisco, expected to affect 5,500 employees worldwide. Cisco stock is holding steady in the face of the announcement, which was released along with the latest quarterly earnings statement. The layoffs were framed as a company restructuring that will allow Cisco to focus on new technologies and markets including security, IoT, data centers and cloud.
Cisco has been active in acquisitions in 2016, with ContainerX marking the sixth year-to-date, and the 16th for the last twelve-month period. This is the first acquisition of a container company, with previous recent acquisitions focused more on security and Software as a Service (SaaS) providers.