Cisco Expands Cyber-Security Capabilities With ThreatGRID Buy

In an attempt to improve their capabilities in cyber security Cisco announced last week its intention to acquire the security company based in New York for a week ThreatGRID undisclosed sum.It expects the deal to close later this year.ThreatGRID provides intelligent analysis to protect against different forms of outbreaks of malware and cyber attacks technology.The acquisition is likely to increase the portfolio of security solutions Cisco Advanced Malware Protection and help improve the security of its network,both on site and in the cloud. Cisco products and AMP solutions were originally developed by Sourcefire,the networking giant acquired $ 2.7 billion in 2013.

Cisco has recently upgraded its security offerings and the center of AMP data to help customers fight against the threats of the most advanced malware and other advanced persistent threats (APT).AMP day now includes new security features to endpoints,the private cloud applications,networks and network devices .These efforts are likely to help the company to compete effectively with its competitors such as Palo Alto Networks Check Point and Juniper in the area of cybersecurity,which has lost market share in recent years.The acquisition can also be interpreted as an effort by Cisco to focus on software and services,and support its vision of becoming the first IT company in the world.

We estimate a $ 26.50 price estimate for Cisco, which is about 10% above the current market price prices.Security is an important component of all products and network services,Cisco and transitions of a hardware manufacturer to a software company that is changing the way security is provided.The company is trying to build an architecture of each division of the company where the hardware, software and services work together to make it more convenient for the customer.This architecture essentially integrate Cisco Internet any concept of cloud data centers,mobility and security.This relieves the customer of the responsibility for the integration of different systems and enable better security and service delivery.

However,the company is looking for a business where the architecture all products and services are integrated and software licenses will be the main driver of revenue model.However,this will allow customers to Cisco software licenses to use products less expensive private label,commoditization of hardware and impacting margins of Cisco products. In addition, customers who use private label products may choose software vendors other than Cisco.Therefore, churn remains a threat to Cisco plans to decouple hardware software.If Cisco can develop an architecture for efficient integration, consolidation and product safety must be able to encourage existing customers to stick to the company and also compete with private label products.His recent group policy, individual products at levels of suites is an example.

Instead of selling a number of individual products Cisco plans to join them in four different levels of suites and market them as ONE Essentials Cisco Cisco ONE fundamentals Cisco Advanced Services ONE Application and Cisco Advanced Services security ONE.Aligned under the same platform Cisco Networking open environment for SDN development , each of the packages are for different purposes and could be allowed on the basis of per bathroom.Cisco said it will still continue to sell products individually for guests who prefer but the products themselves will assume less importance over time ,as it promotes Bundle licenses in place.The new strategy will initially focus on three areas of data center business,enterprise WAN and access networks, but Cisco plans to spend possibly a similar model to the authorized service providers too.

Included in each of these packages and the center of the new brand strategy is the Infrastructure Application Policy Controller new Cisco based software driver,which was introduced last year as a key part of the infrastructure of SDN applications Centric offers Insieme Networks acquired.In addition to simplifying prices and new approach to brand marketing should help to better promote your Cisco SDN platform.With SDN threat to put pressure on margins equipmen ,the new model should also help Cisco license to drive a change in the product mix towards solutions services / higher margin software and protect overall margins.