UPDATED 08:42 EDT / MARCH 29 2011

Cisco to Buy newScale, Scaling its Own Cloud Portfolio

Cisco’s made public its plans for another acquisition today, hoping to add privately-held newScale to its family. Financial terms of the deal have not been disclosed. newScale is a software provider delivering self-service portals for IT organizations, to select and deploy cloud services for their business. They deal with the enterprise market, offering cloud scalability services. It’s the latest acquisition in a string of similar buys, stretching across Cisco, HP and a range of tech firms seeking the best way to incorporate cloud services into their portfolio.

For Cisco, the strategy is to “harness the network as a platform for building and using clouds and cloud services.” Where newScale comes in is in the expansion stage, offering up more supported services for their end clients. From a partnership standpoint, these second-tier relationships amongst the cloud service industry has made them acquisition targets in their own right. Tapping into this extensive client base means a combination of cloud offerings, which have become necessary components to Cisco’s product umbrella, and the need to scale itself.

Cisco’s been facing a rough transition these past few months, pulling a few financial tricks out of its hat. They’re also pushing for a tax break, along with a handful of other prominent companies in the industry.

But Cisco’s buying spree only seems to be speeding up. Earlier this month Cisco took in Inlet Technologies, a provider of ABR digital media processing platforms. Also this month Cisco bought Pari Networks, incorporating its network configuration and change management technology into its own systems. The buys are more examples of Cisco’s goals around maintaining and expanding its product support.

Cisco’s been expanding its reach by land as well, delving into India’s vast market. Teaming with Mahindra & Mahindra Ltd., the two will offer virtual dealerships and cloud computing services to the country’s smaller markets, targeting the sports and entertainment industries. This not only pushes Cisco’s access, but its products as well.


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