Boston, MA 06/02/2014 (wallstreetpr) – Cisco Systems, Inc. (NASDAQ:CSCO) made most of its wealth from the sale of networking hardware. However, the company has lost ground in the hardware segment thanks to intense competition in the marketplace and the shift to software defined networking. In order to keep the company profitable, the management at Cisco has been seeking a transition into software business where it sees many opportunities especially in the cyber security segment.
In the latest move, the company announced the acquisition of the New York-based ThreatGRID, which provides cybersecurity solutions. The acquisition will expand Cisco’s cyber security capability so that the company can increase its revenue earnings in the division.
Cisco Systems, Inc. (NASDAQ:CSCO) did not disclose the amount of money involved in the acquisition of ThreatGRID.
ThreatGRID provides intelligent threat analysis to protect against cyber attacks and malware outbreak. The acquisition will add to Cisco Systems, Inc. (NASDAQ:CSCO)’s Advance Malware Protection offering. That means that the company will effectively improve its cloud and on-premise network security services.
The move by Cisco to acquire Sourcefire for $2.7 billion last year helped the company tap into the lucrative cyber security market at a time when its legacy networking hardware business is struggling. As Cisco Systems, Inc. (NASDAQ:CSCO) seeks to become a leading IT provider in the world, the company expects its latest acquisition in the cyber security segment to help it compete effectively with rivals Juniper Networks, Inc (NYSE:JNPR), Palo Alto Networks and Check Point.
One stop IT company
Although Cisco Systems, Inc. (NASDAQ:CSCO) has had enough of challenges in its hardware division, the company is not about to call it a day just yet. The company intends to build an infrastructure where its hardware, software and service divisions will collaborate so that it can offer its customers all their IT needs almost under one roof. That move will not only help the company to maximize revenue, but also support cost-saving.
Internet of Everything
Cisco Systems, Inc. (NASDAQ:CSCO) has big hopes in its Internet of Everything dream. The company intends to connect every device through Internet of Everything and it is already pouring in money in investments related to the same. Through Cisco Investments, its capital ventures division, Cisco recently announced $150 million allocation for various Internet of Everything investments and the company expects to do more within the next few years.
