Cisco disclosed its plans to pay $293 million in both cash and equity to obtain CloudLock, a cloud-based security provider that utilizes APIs to let enterprises install as well as monitor security on documents and other contents that they store in cloud-based applications.
CloudLock operates with Office365, Google Drive, and Salesforce applications, among several other applications and software. Its main target is to offer security and implementing policies to protect documents, regardless of the device used to access it, and authorizing specific controls based on location. In relation to that, CloudLock is knocking into another huge trend beyond the use of APIs to carry out services, where individuals are using their own devices for work purposes, and in a spectrum of environments from their homes to places where they are linking through public networks. The company has over 700 customers, according to Cisco.
The security company is not alone in its effort to enter into APIs to solve security concerns, or satisfy the need of securing documents in enterprise clouds. Other rivals include, Skyhigh Networks, CipherCloud, Netskope, and Microsoft through its Adallom purchase.
CloudLock’s API feature is interesting as it helps control some of the key networking and operational chunks of today’s apps, and means that applying CloudLock itself is relatively straightforward.
“CloudLock rose to leadership in the cloud security sector with a pure play approach of being cloud-native while leveraging other cloud platform APIs in a collaborative fashion,” one of the investors stated. “They were a trailblazer of this approach while the competition often focused their efforts on extending legacy methods.”
The company’s employees will join Cisco’s Networking and Security Business, headed by Senior Vice President and General Manager, David Goeckeler.
While Cisco has established its reputation in server architecture and server services, this is an element of the company’s other play in enterprise IT, where it has greatly opted to improve inorganically.
Ahead of the announcement, CloudLock had increased $35 million in funding with other investors such as Cedar Fund, Salesforce, Bessemer Venture Partners and others, making this purchase a robust return for the company and market players.
Cisco Turns to LoRaWAN for IoT Connectivity
Cisco has chosen another industry partner for its Internet of Things business. The network giant added a LoRaWAN-capable gateway to its growing product set. The move allows service providers to create networks of low-powered sensors.
All the target markets aim to have devices that can operate at low power, extending their battery life. That’s where LoRaWAN and other offered standards step in.
Shares of Cisco rose 1.69 percent to $28.26 in the last trading session, with a volume of 24,646,898 shares traded. That figure is lower than the stock’s average daily trading volume of 27,647,004.
The company’s stock is trading higher than it was last year, with the stock price having been boosted by 2.61 percent. The company’s existing market capitalization is 142,207,711,000.
Cisco stock slightly recovered in the previous trade, and is setting up as a low-risk buy for patient bulls. In a short term basis, Cisco investors should consider the stock a very low-risk buy.