Cisco Goes After Cloud With BroadSoft Acquisition

Contributor: Jason Koestenblatt
Posted: 10/23/2017
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Cisco BroadSoft

If you can’t beat them, buy them.

For legacy hardware manufacturer Cisco, that seems to be the mantra in the ever-evolving digital transformation age, announcing this week it had acquired 19-year-old cloud-services company BroadSoft for $1.9 billion.

In a statement Monday announcing the acquisition, Cisco outlined its reason for targeting BroadSoft to further cloud capabilities.

“We chose BroadSoft as it provides a portfolio of cloud collaboration platforms and business applications, which strengthen our cloud investments and ability to deliver collaboration solutions to our global telecom provider customers. Following the close of the acquisition, Cisco and BroadSoft will provide a comprehensive SaaS portfolio of cloud based unified communications, collaboration, and contact center software solutions and services for customers of all sizes.”

Further, Cisco said BroadSoft’s portfolio is complementary to its existing on premises and enterprise-centric Hosted Collaboration Solutions.

This is Cisco’s second big splash in the last half year, after purchasing AppDynamics in March to bolster its business performance monitoring portfolio. The plan then was to integrate AppDynamics’ data platform with Cisco’s data platforms over time to give joint customers and “end-to-end” view.

Cloud migration and platforms remains IT professionals’ biggest priority when it comes to digital transformation, as reported by Enterprise Mobility Exchange in its mid-year global report, titled “Industry Insight 2017: The State Of Enterprise Mobility.”

See related: Industry Insight 2017: The State of Enterprise Mobility

The survey data inside that report showed 46% of IT professionals said cloud was their number one priority in 2017, and just 19% said their enterprise has fully migrated to the cloud.

“The new consumption model of cloud is driving IT’s working and priorities,” said ESG Senior Analyst Mark Bowker. “The power of cloud to scale, to have access to resources, makes it a necessity. For instance, IoT isn’t any good until information is collected and analyzed; and that takes place in the cloud.”

Cisco is just another major player to bump its cloud offerings via acquisition. In late September, Google Cloud acquired Bitium, a startup focused on enterprise-wide identity management and access tools for cloud-based apps.

See related: Google Cloud Acquires Bitium For Cloud-Based IAM

“Companies that have been in business less than 10 years have a stronger appetite for the cloud, while those that have been around longer don’t,” Bowker continued said. “It also has a lot to do with the decision-maker; millennials are taking on stronger roles at companies in positions that are essentially born in the cloud.”

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Jason Koestenblatt
Contributor: Jason Koestenblatt