Why Did Cisco Acquire ContainerX?

Cisco Network

There are several reasons as to why Cisco systems may have wanted to acquire ContainerX. One such reason is that Cisco is quickly becoming a company that prides itself on its recent strides into new-grounds with technology, becoming more focused on software and cloud-enablement. Cisco may believe, as many others do, that software is quickly becoming more virtualized and the work of companies like ContainerX is exactly what they need to carry their business into the ever-changing future. Cisco may wish to tap into that specific networking market of the public and private cloud sector and the easiest way for them to do that is to acquire a company that already specializes in that field. Cisco may have realised within recent years that, in this industry, you must adapt quickly or let your company suffer a slow and painful demise at the hands of modernity. This acquisition has very efficiently propelled their business forward into the modern world and will hopefully mean that their future products and focuses are on these cloud-based technologies that ContainerX specializes in.

Additionally, Cisco Systems may want to use ContainerX’s product for their own personal business use. As previously mentioned, ContainerX offer a great all-in-one service that offers quick managerial solutions to using software containers, something that a large company like Cisco is sure to have an incredible amount of. Cisco may have acquired ContainerX to get a hands-on demonstration of their product so that they could customise it from the ground-up to meet their own managerial needs. This way, Cisco will be able to run their own infrastructure of software containers in a much more efficient way than they may have prior to the acquisition.

CiscoThe main reason behind this acquisition, however, is much more likely to be the case that Cisco have realised that cloud-based networking is the way of the future and, whether they or the industry likes it or not, they must adapt and change their business model to include this technology if they wish to have any chance of competing with other creators of cloud-based services that are sure to arise in the coming years. By getting in quickly and establishing their own products on the market, Cisco undercuts the competition by a mile and can take their place as king of cloud-based networks for the time being, well before their competition has even made their first real stride into the business.