November 16, 2012 – Cisco plans to pay $125 million in cash and incentives for data center infrastructure automation provider Cloupia.

Cloupia software handles automation processes with operational, networking, storage and VMs associated with data centers. Cisco touted the Cloupia portfolio’s potential to combine computing power and networking services for storage providers.

Cisco SVP and GM of the Data Center Group David Yen said in a news release on the proposed deal that infrastructure automation software developments from Cloupia would flesh out Cisco’s support for hypervisors and storage to enable customers to “accelerate the transition from physical to cloud environments more quickly and effectively.”

Cloupia employees and software will fold into Cisco’s Data Center Group. Cloupia was founded in 2009 and is based in Santa Clara, Calif., with operations offices in India. Its founders have a long history with Cisco. Cloupia CEO Raju Datla having previously led Jahi Networks, which was bought out by Cisco in 2004, and CTO Raju Penmetsa was previously led data center and infrastructure management technical initiatives at Cisco.

The deal for privately held Cloupia is subject to closing conditions and expected by Cisco to close in the second quarter of Cisco’s fiscal year 2013.

After a trio of big data-related acquisitions earlier in the year, Cisco has made a few moves in the cloud data center space of late. In August, Cisco announced a partnership with VMware to develop integrated SDN data center products. Cisco also bought out privately held cloud and virtual environment infrastructure security provider Virtuata in July.

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