As businesses are expected to spend $1 trillion by 2021 to combat cybercrime, Cisco has been taking measures to beef up its security offerings with a series of acquisitions in this arena.
Today, the San Jose-based networking announced that it has obtained cloud security startup Observable Networks for an undisclosed amount, reported the St. Louis Business Journal. Based in St. Louis, the company which monitors what people are doing on in the cloud to help detect security breaches, had raised less than $5 million, according to Crunchbase.
Cisco also bought Georgia-based Lancope in 2015 for $453 million and Massachusetts-based Cloudlock last year for $293 million. Microsoft and Oracle have also made recent key security acquisitions.
“The ability to dramatically improve visibility, security and response capabilities across an entire IT surface, including highly distributed branch environments and public cloud infrastructures, is becoming increasingly important as companies and organizations continue their digital transformation,” Rob Salvagno, Cisco’s head of mergers and acquisitions, said in a blog announcing the acquisition.
Some say the foray into new security systems goes hand-in-hand with Cisco’s attempt to make up for its stumbling legacy business.
“The acquisition of Observable Networks supports Cisco’s strategic transition toward software-centric solutions,” Salvagno said.
Observable Networks’s technology will be folded into Cisco’s Stealthwatch product, which is part of its Security Business Group run by David Ulevitch. Cisco bought his security company, OpenDNS, in 2015 for $635.