Cisco Makes Meraki Move, Eyes Cloud Dollars
The acquisition, however, was hardly a bolt out of the blue, according to Oppenheimer & Co. analyst Ittai Kidron.
"The deal doesn't surprise us considering Cisco's ongoing effort to build-out WLAN and Unified Access in longer term defense of its Ethernet switching business," he wrote. "As for Meraki, its appeal lies in its software controller which allows network operators to centrally manage and operate networks through the cloud. While valuation appears rich, Meraki could round out Cisco's WLAN (Wireless LAN) portfolio and longer term, potentially complement its SDN (Software-Defined Networking) and cloud strategy."
SDN refers to, a set of techniques for managing network traffic flows through software, which is increasingly touted by the likes of Cisco and its networking rival HP (HPQ).
The Meraki acquisition is expected to close in Cisco's fiscal second quarter ending in January.
Cisco shares, which have gained 0.94% this year, were up 1.45% to $18.25 in Monday's trading. --Written by James Rogers in New York. Follow @jamesjrogers >To submit a news tip, send an email to: tips@thestreet.com.Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Product Features:
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV
