JouleX- the new jewel in Cisco Systems, Inc (NASDAQ:CSCO)’s crown
The largest networking equipment maker, Cisco Systems, Inc (NASDAQ:CSCO) will be acquiring JouleX for $107M. It will gain software which companies can use in power-usage management even as the spurt in mobile devices has led to snowballing data traffic. In a statement, San Jose, California-based Cisco said that the transaction includes cash as well as retention-based incentives and is expected to close in the financial Q4. John Chambers, CSCO’s Chief Executive Officer is revving up investments in data networks in order to make space for users who have been increasingly depending on tablets and smartphones to surf the web and watch video online.
Adding the programs and services that JouleX’ has, to manage energy-consumption across corporate networks will help Cisco expand beyond hardware. The latter is one area where growth has been stunted with no indication that the situation is going to change.
Traveling the acquisition route
Chambers has been working on boosting CSCO’s core business of switches and routers for big companies as well as telecommunications carriers and JouleX is the latest in the series of acquisitions that the CEO has been working on. Last month, the company agreed to buy Ubiquisys, a U.K. networking company for around $310M. With this acquisition it gains technology that will help wireless carriers in provisioning enhanced services to tablet and smartphone users. In the recent months, Intucell Ltd. had been acquired for $475M and Meraki Inc. had been bought for $1.2B.
Conservation of energy consumption via corporate network
Technology suppliers have been delivering products to mange energy-consumption and offer innovative IT delivery approaches like data-center virtualization which helps in reducing power and cooling demands. CSCO has taken a wider approach to energy management. EnergyWise, its power-command and control architecture provides IT leaders and businesses with tools to measure, manage as well as control power-consumption of all the devices that are connected to a corporate network. In addition to this, EnergyWise also helps in connecting air conditioning, facility heating, lighting as well as other non-IT systems. These are the systems that consume the largest percentage of corporate energy. Cisco Systems, Inc (NASDAQ:CSCO) has always been a driving force when it comes to innovation and development of new products and it never fails to deliver.