Cisco Buys Mobile Software Infrastructure Startup for $475M – Is This SDN for Mobile Networks?
Cisco shelled out nearly half a billion dollars for Intucell, Israeli developer that makes management software for telecommunications companies. The company lists AT&T and several other major U.S. carriers as customers.
Intucell’s self-optimizing network (SON) technology prevents dropped calls in heavily populated areas by responding to traffic shifts in real-time. If too many users are connected to a single cell tower, the platform will automatically tap into nearby towers and redirect traffic on an as-needed basis.
According to Globes, a local business publication, founders Rani Wellingstein and Ido Susan will each net about $80 million from the deal. Bessemer Partners, a VC that bought nearly half the equity in the company two years ago, will bag a proportional chunk of the $475 million that Cisco agreed to pay.
“The proliferation of connected mobile devices, faster network speeds, and growing demand for high-bandwidth applications and services are driving greater network traffic and complexity,” said Kelly Ahuja, SVP and GM of Cisco’s Service Provider Mobility Group.
“As mobile service providers continue to face increased end-user demand, the need to optimize network bandwidth, usage and services is increasing. Intucell’s SON software platform addresses these challenges by examining the network, identifying issues in real time, and intelligently adapting the network to meet demand.”
The Intucell buy is a win for Cisco. The vendor is attempting to kill two birds with one stone by aggressively expanding in the emerging software-defined networking market while bolstering its position in the telecommunications industry, where it has historically maintained a strong presence.
Cisco has big ambitions, and CEO John Chambers is not afraid of spending money to achieve his goal. Earlier this week the company announced that it bought a stake in Parallels, and yesterday morning we’ve learned that the firm is committing more resources to a converged infrastructure R&D partnership with NetApp.
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