Comments on: Here is why Cisco bought Meraki for $1.2 billion in cash http://gigaom.com/2012/11/18/cisco-buys-meraki-for-1-2-billion-in-cash-here-is-why/ Tue, 21 May 2013 16:55:42 +0000 hourly 1 http://wordpress.com/ By: Tony http://gigaom.com/2012/11/18/cisco-buys-meraki-for-1-2-billion-in-cash-here-is-why/#comment-1303367 Thu, 24 Jan 2013 21:40:37 +0000 http://gigaom.com/?p=585928#comment-1303367 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:
http://www.meraki.com/company/webinars?ref=VGpTTX

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:
http://www.meraki.com/company/webinars?ref=VGpTTX

]]> By: Beecher Vaillancourt http://gigaom.com/2012/11/18/cisco-buys-meraki-for-1-2-billion-in-cash-here-is-why/#comment-1303023 Thu, 24 Jan 2013 05:35:58 +0000 http://gigaom.com/?p=585928#comment-1303023 All I can say is congrats to the 3 owners of Meraki. $400Million each or about $65Million a year for the last 6 years!

Nice

]]> By: Guy Doon http://gigaom.com/2012/11/18/cisco-buys-meraki-for-1-2-billion-in-cash-here-is-why/#comment-1197931 Wed, 21 Nov 2012 15:20:29 +0000 http://gigaom.com/?p=585928#comment-1197931 HP may have price, but they’ve fallen behind on “quality”

]]> By: Paul Singh http://gigaom.com/2012/11/18/cisco-buys-meraki-for-1-2-billion-in-cash-here-is-why/#comment-1196307 Wed, 21 Nov 2012 02:13:48 +0000 http://gigaom.com/?p=585928#comment-1196307 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.

]]> By: Om Malik http://gigaom.com/2012/11/18/cisco-buys-meraki-for-1-2-billion-in-cash-here-is-why/#comment-1194640 Tue, 20 Nov 2012 14:49:30 +0000 http://gigaom.com/?p=585928#comment-1194640 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.

]]> By: Raju Nunna http://gigaom.com/2012/11/18/cisco-buys-meraki-for-1-2-billion-in-cash-here-is-why/#comment-1193054 Tue, 20 Nov 2012 06:54:12 +0000 http://gigaom.com/?p=585928#comment-1193054 Follow Meraki’s link (towards the end of the page) for their pricing comparison against that of Cisco’s

http://www.meraki.com/products/wireless/#benefits

Meraki claims their pricing is 1/6th that of Cisco’s.
Now, a $100M run rate at Meraki means a $600M dent/threat for Cisco.

Draw your own conclusions.

]]> By: Raju Nunna http://gigaom.com/2012/11/18/cisco-buys-meraki-for-1-2-billion-in-cash-here-is-why/#comment-1193045 Tue, 20 Nov 2012 06:48:24 +0000 http://gigaom.com/?p=585928#comment-1193045 Look towards the end of the page for Meraki’s pricing comparison against Cisco’s:

http://www.meraki.com/products/wireless/#benefits

Meraki sells products at 1/6th price of Cisco.
So, a $100M bookings run rate at Meraki meams a $600M dent for Cisco.

That should give you some idea. Draw your own conclusions.

]]> By: Paul Singh http://gigaom.com/2012/11/18/cisco-buys-meraki-for-1-2-billion-in-cash-here-is-why/#comment-1192390 Tue, 20 Nov 2012 01:28:41 +0000 http://gigaom.com/?p=585928#comment-1192390 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?

]]> By: Guest http://gigaom.com/2012/11/18/cisco-buys-meraki-for-1-2-billion-in-cash-here-is-why/#comment-1192216 Mon, 19 Nov 2012 23:38:22 +0000 http://gigaom.com/?p=585928#comment-1192216 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.

]]> By: Mark http://gigaom.com/2012/11/18/cisco-buys-meraki-for-1-2-billion-in-cash-here-is-why/#comment-1192150 Mon, 19 Nov 2012 22:51:19 +0000 http://gigaom.com/?p=585928#comment-1192150 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!!!

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