Cisco Announces Intent to Acquire newScale
SAN JOSE, Calif. March 29, 2011 Cisco today announced its intent to acquire privately-held newScale Inc., a leading provider of software that delivers a service catalog and self-service portal for IT organizations to select and quickly deploy cloud services within their businesses. Based in San Mateo, Calif., newScale allows commercial and enterprise customers to initiate the provisioning of their own systems and infrastructure on an as-needed basis.
"Cloud computing represents a major shift in the evolution of the Internet, and as more customers migrate from traditional IT infrastructures, the need for rapid self-provisioning and efficient management becomes increasingly critical," said Parvesh Sethi, senior vice president of Cisco Services. "With the acquisition of newScale, Cisco will be able to accelerate the deployment of cloud services through a service catalog and self-service portal that allows customers to easily manage their IT infrastructures."
Cisco's cloud strategy is to harness the network as a platform for building and using clouds and cloud services. newScale will complement and expand existing Cisco and partner software offerings in IT and cloud management and automation. Cisco remains committed to supporting flexibility and choice in management through a broad ecosystem of technology partners, and newScale delivers an additional option the company can provide to its customers.
Financial terms of the transaction are undisclosed. The acquisition is subject to various standard closing conditions and is expected to be complete in the second half of Cisco's fiscal year 2011. Upon the close of the acquisition, the newScale team will report into Cisco's Advanced Services organization.
About Cisco Systems
Cisco (NASDAQ: CSCO) is the worldwide leader in networking that transforms how people connect, communicate and collaborate. Information about Cisco can be found at http://www.cisco.com. For ongoing news, please go to http://newsroom.cisco.com
# # #
Cisco, the Cisco logo, and Cisco Systems are registered trademarks of Cisco Systems, Inc. in the U.S. and certain other countries. All other trademarks mentioned in this document are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. This document is Cisco Public Information.
This press release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including the expected completion of the acquisition and the time frame in which this will occur, the expected benefits to Cisco and its partners and customers from completing the acquisition, and plans regarding newScale personnel. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including, among other things, the potential impact on the business of newScale due to the uncertainty about the acquisition, the retention of employees of newScale and the ability of Cisco to successfully integrate newScale and to achieve expected benefits, business and economic conditions and growth trends in the networking industry, customer markets and various geographic regions, global economic conditions and uncertainties in the geopolitical environment and other risk factors set forth in Cisco's most recent reports on Form 10-K and Form 10-Q. Any forward-looking statements in this release are based on limited information currently available to Cisco, which is subject to change, and Cisco will not necessarily update the information.