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Cisco Buys Network Management Company

November 18th, 2004

Cisco Systems announced today that it is looking to acquire Jahi Networks, a startup out of San Jose, California. The deal, worth approximately $16M is subject to standard closing conditions and will likely be completed by mid-2005.

Jahi is a provider of advanced network management style appliances, and the deal is designed to further strengthen Cisco’s network management portfolio.

After the acquisition closes, the Jahi team will become a part of Cisco´s Network Management Technology Group, which is headed by Cliff Meltzer, senior vice president of Cisco, San Jose.

Cisco has acquired nine companies in 2004, including security vendors Twingo Systems, Riverhead Networks and Perfigo; networking technology vendors Procket Networks, Actona Technologies, Parc Technologies, P-Cube and Dynamicsoft; and managed service provider NetSolve.

The move comes as Cisco’s network management software, which is designed to treat servers and routers and indistinct nodes through which traffic and requests flow, is being over-run by higher level software from server vendors.

Recent deals with Microsoft have strengthened Cisco’s position, and the acquisition of a hot young appliance maker is likely to extend Cisco’s reach even farther in a market where they should be the natural leader – providing network management appliances and software along with their network equipment.

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