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Cisco to Buy Austrian Cloud Company

SolveDirect’s flagship product is a thing call ServiceGrid

Cisco blogged Monday that it intents to acquire the privately held Viennese cloud company SolveDirect for its cloud integration software. It said nothing about price.

In 2009 Cisco promised to underwrite the operation, then a subsidiary of Brain Force Holding AG, to the tune of €6 million over the years and fund its expansion into the US with the objective of tripling its revenues.

As part of the deal Brain Force spun it off but was still an investor, now probably holding less than 50%. It depends on how much Cisco's investment in the firm diluted its position.

In 2008, SolveDirect generated revenues of €5.7 million and an EBITDA of over €1 million, employing 41 people. Cisco is reportedly a SolveDirect customer. The Austrian company is also a partner of BMC, which is currently in the throes of getting auctioned off and taken private.

Anyway, the Cisco blog says, "The move towards multi-sourcing and cloud services is accelerating the development of large ecosystems of companies - from enterprise IT and manufacturing, to SaaS providers - that need to share data in a secure and scalable way. Most of the interactions between these service partners today require manual effort, growing cost and complexity for an organization as their number of service partners grows. SolveDirect's cloud-based solutions offer enterprises and service providers a flexible way to integrate with service partners, and automate sharing of processes, data, and workflows in real-time by eliminating manual practices and bottlenecks, driving significant operational efficiencies."

The SolveDirect team will join the Cisco Services team under Mala Anand, head of Cisco's Services Platforms Group.

The acquisition, which claims 220 customers around the world, should close by the end of July, Cisco's fiscal Q4. It says it can integrate any service management processes across multiple partners, regardless of their existing systems and ITSM solutions, allowing full transparency and end-to-end monitoring of service levels.

Its flagship product is a thing call ServiceGrid, which is supposed to let the largest IT outsourcers and MSPs provide customer satisfaction through process collaboration with their service delivery partners. Enterprises are supposed to be able to coordinate their multi-sourced IT services and govern the SLA fulfillment of multiple partners to leverage their outsourcing deals in the best way.

It claims to provide a cost savings of up to 80%.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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