The News: Cisco announces its intention to acquire cloud-native networking and security leader Isovalent. Read the full press release on the Isovalent website.

Cisco to Acquire Cloud-Native Networking & Security Leader Isovalent

Analyst Take: Cisco is making strategic moves to bolster its software credentials, embarking on a spending spree aimed at transforming its business toward a more annual recurring revenue (ARR)-focused model. This shift is exemplified by the pending acquisition of Splunk, a data analytics and security leader, signaling Cisco’s commitment to expanding its software and cloud-based offerings. Additionally, Cisco’s recent acquisition of Isovalent, a cloud-native networking and security company, further cements its pivot to software and services, aligning with the growing demand for advanced cloud solutions. These acquisitions represent Cisco’s strategic realignment, transitioning from its traditional hardware-centric approach to a software-driven business model, capitalizing on the lucrative and scalable opportunities in the software and cloud services market.

Another milestone in the cloud-native networking and security space came with Cisco’s announcement this week to acquire Isovalent, the trailblazer behind the Cilium project. This move marks a transformative chapter in the Isovalent journey and the Cilium ecosystem’s evolution.

Seven years ago, the seeds of Isovalent were sown with the inception of Cilium, an open source project aimed at redefining networking and security in the cloud-native age. The founders of Isovalent embarked on this mission with a clear vision: to democratize the power of eBPF technology. Fast forward to today, and the company’s dream has materialized into a robust technology, backed by a thriving open source community and a passionate team, making waves across the cloud-native landscape.

Cilium’s CNCF Journey and the Power of Open Source

Isovalent’s dedication to open source innovation is evident in its decision to donate Cilium to the Cloud Native Computing Foundation (CNCF). This strategic move brought together a vibrant community that developed Cilium into a CNCF graduated project, aligning it with other giants such as Kubernetes and Prometheus. The success of Cilium exemplifies the transformative power of open source collaboration in standardizing cloud-native technologies.

The Cisco-Isovalent Synergy: A Vision for the Future

Details are scant, as is customary for this type of announcement but Cisco’s acquisition of Isovalent should not be viewed as just a business transaction; it is a fusion of visions. Cisco brings to the table a commitment to double down on Isovalent’s products and its open source strategy. This collaboration promises to elevate Isovalent’s offerings, particularly the Isovalent Enterprise, and integrate them into Cisco’s broader vision of cloud-native excellence. Cisco will be able to superpower the GTM engine and scale of Isovalent on day one, and this will be crucial for the success of this transaction

Underpinning Isovalent’s technological prowess is a legacy of community building, innovation, and culture. From raising funds from top-tier investors to featuring in a documentary on eBPF, Isovalent’s journey is a tapestry of achievements. But the heart of its success lies in its team—individuals united by a shared passion for technology and community. This community focus, something Cisco is not necessarily known for—will be a precursor to the work that Splunk does in the Open telemetry open source community when that acquisition closes.

Looking Ahead

As Isovalent integrates into Cisco, there is palpable excitement about the future. The merger amplifies the potential of eBPF, Cilium, and other open source projects, promising to bring this technology to a broader customer base. The shared vision of Isovalent and Cisco is clear: to continue pioneering in the realm of cloud-native networking and security, delivering solutions that customers love.

As Isovalent embarks on this new chapter with Cisco, it is a time for reflection. The journey so far has been incredible, thanks to the support of the community, customers, and partners. With Cisco’s backing, Isovalent is poised to reach new heights, bringing its unique blend of technology, culture, and community to the forefront of cloud-native innovation.

Cisco’s intent to acquire Isovalent signifies a major milestone in cloud-native networking and security. It is a testament to the power of vision, community, and open source collaboration. As we watch this partnership unfold, one thing is certain: the future of multi-cloud networking and security is bright, and the combined forces of Cisco and Isovalent are writing it.

Disclosure: The Futurum Group is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.

Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of The Futurum Group as a whole.