Prem Jain's Insieme Networks to be Bought by Cisco

With a motive to provide superior software networking to the world, Insieme Networks, a company co-founded by Prem Jain, Mario Mazzola and Luca Cafiero lend their helping hand to Cisco systems. Insieme’s work in developing advance Software-Defined Networking (SDN) is a must buy for the networking giant to maintain its position in the market, as stated by New York Times.



The trio of Prem, Mario and Luca, has already sold two other startups Andiamo Systems and Nuova Systems to their ex-employer, Cisco. The California based Insieme Networks plans to proceed in the same lines as Andiamo Systems that made storage-area network switches and Nuova Systems, which developed Nexus 5000 series data center switches, to hugely benefit Cisco.


Instead of getting knocked down by budding network startups, Cisco decides to follow its prime motto of “We will build, we will buy, we will partner.” Having already invested $100 Million to support Insieme’s research on 100G Ethernet and storage controlled by a Layer 4-7 SDN, Cisco has shown clear intentions of buying it for a sum of $850 Million.


“Insieme’s product development efforts are complementary to that of Cisco’s current and planned internal investments. Insieme and other internal programs will be components of Cisco’s broader programmability framework. These types of investments have strongly benefitted Cisco in the past, and we will continue to look for similar ways to complement our internal development capabilities”, said David McCulloch, Cisco’s director of corporate communications.


This buy would be a highly profitable spin-in for both the sides. Since, Cisco has already been investing a lot in Insieme’s work; existence of a profound financial and intellectual bond is credible which would help create innovative products faster.