17 thoughts on “Here is why Cisco bought Meraki for $1.2 billion in cash”

      1. Aerohive AP’s perform terribly in dense environments or environments with a lot of RF interference (classrooms, offices, warehouses, etc.). They use consumer grade antennas and there cloud management platform was awful in comparison to Meraki’s (who also had bad performing AP’s but made up for it with their management platform). Definitely not a good choice, and this is coming from someone who has tested them both!!!

  1. Congratulations to Meraki team. I also liked the article. A really nice post , covering the important details . Much better than covered on other tech sites ( i don’t want to name them)

  2. Cisco did HP a favor here… Meraki was winning for great quality/price factor. Now price will be off the roof and HP will have now the quality/price advantage

  3. This is a series II from Sequoia – which shows how to rob a bank/casino or Cisco – in daylight
    Similar to the vein of Ocean 11/12/13 — i guess we need to wait for couple more years for series 3

    2008- Flip – Sequioa needed money to stay solvent- not sure what prompted them for this ’12 series

    I guess CSCO/Chambers owes Sequioa big time -plus they have $30 B – which people can loot

    1. Steve

      Good points. But that has been going on for a long time and these aren’t the two deals. That said, while Flip was a terrible idea in my opinion, this one isn’t bad move since it is much closer to the core business of Cisco which is still old school when it comes to software/cloud.

  4. This is a good move by Cisco. Cisco was totally clueless on cloud computing. There were some paper tigers running around cloud conferences without building any real products. Now they can rest/retire at home.

  5. Om,
    I am sorry but expected better depth in your articles. Many points have been missed by you and others – why did Cisco pay over 13x booking run rate (may be 20X sales) for this company when they bought Airespace which seem to be doing well? You mention Linksys which was a consumer product while this product is squarely against Airespace product which was not mentioned at all. Would Cisco cannabalize its sales or really have access to a new market with this product?

    1. Paul

      No one denies that the deal is expensive. Look at this way — they bought into a new way of doing business — the software/cloud based business model. Did Aruba make a better be? OF course, but looks like they felt that it was a better bet on the future. Meraki, might just help Cisco think differently about software/cloud based product management.

    1. That is a reality that Cisco and others have to face in the new economy. I should say they have guts to to tread into new direction before the tsunami and so may be better prepared to meet the future.

  6. I’m not surprised they are being bought because they’re an incredible company with rock solid technology. I wonder how much longer they’ll offer a free access point ($700 value) just for watching a webinar. Here’s the link for anybody who wants some free gear:

    While Meraki webinars are open to all audiences, to be eligible for a free access point, participants must:
    • Attend the webinar in its entirety.
    • Enter a valid company name.
    • Be an IT professional.
    • Register with a shipping address in the US, Canada, or the European Economic Area.
    • Register with their organization’s email address.
    • Confirm eligibility and shipping address with a Meraki representative by phone.

    Meraki also provides a free Mobile Device Management application that is pretty great. I’m surprised they still offer this for free considering the amount of companies charging for similar solutions. BYOD has been driving a strong demand from MDM. Here’s the link:

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