UPDATED 09:35 EDT / JANUARY 26 2011

Cisco Eyes Pari Networks for Acquisition, Shifts Direction of Products

To complement its smart service capabilities, Cisco announced its interest to acquire Milpitas, California-based Pari Networks, a leading provider of network configuration and change management (NCCM) and compliance management solutions. Pari Network’s technology will integrate into Cisco’s smart services to increase efficiency of Cisco and partners in managing customers’ networks through proactive, personalized services. Cisco has been shifting from reactive to proactive service offerings through the integration of smart service capabilities.

“As business functions become more reliant on devices and applications that run over their networks, customers realize that maintaining the health and performance of the network is critical,” said Joe Pinto, senior vice president of Cisco’s Technical Services. “Pari Networks will help Cisco and our partners to deliver smarter, more proactive services that help our customers to identify potential network problems before they occur and optimize the performance, management and efficiency of their networks.”

Pari Networks does not only bring in leading technology to Cisco, but a team of industry-leading engineers as well. While it’s headquarters is in the US, it has a base in Hyderabad, India.  The acquisition is expected to be completed 3rd quarter of Cisco’s fiscal year, provided with completion of several closing conditions. Pari Networks employees will absorbed by Cisco.

Acquisitions make for a great way to get new technologies integrated into a company, which is why a lot of cloud companies are busy buying up smaller firms.  Amazon recently acquired the European version of Netflix called LOVEFiLM. This is a strategy to compete with Netflix’s plan to extend its service offerings beyond United States and Canada. The deal is expected to close first quarter this year. Skype also confirmed an acquisition deal with Qik. The exact amount and terms of the acquisition were not disclosed but estimate was said to be around $100 million.
But perhaps the hottest acquisition we’ve seen in the IT industry last year was the tag of war between HP and Dell over 3Par, where HP emerged as the victor. However, Dell took a rebound acquisition with Compellent, and this became the start of a chain of acquisitions as the company craves for more storage services. Early this month, Dell announced an agreement to acquire SecureWorks.

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