Boston, MA 10/16/2013 (wallstreetpr) – Cisco Systems, Inc. (NASDAQ:CSCO) one of the market leaders in the technology sector in Silicon Valley clarified on Tuesday that it is all set to pay an amount of 415 million dollars to a company called Whiptail. Whiptail specializes in developing software that helps in the effective management of flash storage used in cloud as part of cloud computing. Cisco’s deal with Whiptail is an important one for this big networking giant as it is its first step into the market of storage space. However, the deal may lead to issues cropping up between Cisco and EMC, which is one of the important partners and also the major storage giant houses in Massachusetts.
Previous year, VMware, whose majority of stakes are under the ownership of EMC, paid nearly 1.26 billion dollars for a future networking firm called Nicira. The deal leads to a lot of friction between EMVC and Cisco which was more clear when EMC cut down on their requirement for the products manufactured by Cisco. Now the two market leaders are competing against each other for networking products. Joe Tucci, who is the chief executive for EMC said that their deal with VMware that happened last year did create some issues between them and Cisco Systems, Inc. (NASDAQ:CSCO).
He further said that Cisco is EMC’s closest and planned partner and they aim at maintaining a smooth relationship with them in the long run. Cisco answered back with the decision to take over Whiptail. Whiptail develops software for numerous corporate clients that allow them with a smooth management of data stored in a cloud. EMC already excels in this field. EMC had already purchased whiptail’s biggest competitor XtremIO back in the year 2012.
