Cisco buys Israeli co Sedona Systems

The acquisition is designed to strengthen Cisco's efforts to upgrade its Internet network infrastructure.

Cisco Systems Inc. today announced that it has acquired Israeli 5G network intelligence and automation company Sedona Systems. No financial details were disclosed but sources close to the deal estimate that Cisco is paying about $100 million.

Following the acquisition, Sedona which has 43 employees in Tel Aviv, is expected to become part of Cisco with all managers and employees joining the US tech giant.

The acquisition is designed to strengthen Cisco's efforts to upgrade its Internet network infrastructure, in particular due to the jump in online use in the wake of the Covid-19 pandemic, and the continued expected rise in use with the shift to 5G, fiber optics and AI-based digital services, which increase congestion on networks.

This latest acquisition comes six months after Cisco bought Israeli security solutions company Portshift. Sedona Systems is Cisco's 15th acquisition in Israel for a total of $7.2 billion, more than any other company except Intel. Cisco has also invested in 38 Israeli startups and five Israeli investment funds.

Cisco Israel managing director Oren Sagi said that the acquisition of Sedona will allow Cisco to offer its telecom, and ISP customers a more efficient connection.

Sagi said, "Every large data center today has lots of technology from different generations, originating from many different manufacturers like Cisco, Juniper and Lucent with a major mix of manufacturers and technologies. You really need one management for all the layers of switches and routers - a system that connects them all via software and creates a large network with single management."

He added, "Sedona comes to telecoms and says to them - the current model is not efficient because you are paying millions on maintenance, and various people to manage the different network and various management tools. Sedona offers to manage everything from one central place and bring all the separate layers into one layer and move from a world of many IP layers, fiber optic and radio to a world of routed optical networks (RON)."

Published by Globes, Israel business news - - on May 11, 2021

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