BlogFailed Startups
/
Accedian Acquisition

Accedian Acquisition: Key Details, Impact, and What Comes Next

February 25, 2025

Cisco's acquisition of Accedian marks a significant step in enhancing its network assurance and performance management solutions. By integrating Accedian's advanced monitoring technology, Cisco aims to provide comprehensive end-to-end network visibility and service assurance. This strategic move is expected to bolster Cisco's market position, particularly in the realm of high-performance service assurance for communication service providers and enterprise networks.

What Is Accedian?

Founded in 2004, Accedian specializes in network performance monitoring and service assurance solutions. Its core products include Skylight, a platform offering granular, real-time visibility and analytics for network performance. Accedian differentiates itself with its microsecond precision in monitoring and AI-powered predictive analytics, enabling proactive network management. The company's solutions are known for their reliability, flexibility, and ability to provide end-to-end visibility, making them a preferred choice for communication service providers and enterprises.

Who Acquired Accedian?

Cisco is a leading provider of software, network, and cybersecurity solutions, playing a pivotal role in the technology industry. Key products include the Cisco 8000 Series Routers, Cisco AI Defense, and Cisco Nexus Hyperfabric. The company is renowned for its innovative approach, particularly in networking, cybersecurity, and AI solutions. With over 40 years of experience, Cisco holds a dominant market position, driving industry standards and influencing technological advancements globally.

When Was Accedian Acquired?

Cisco completed its acquisition of Accedian on September 29, 2023. This acquisition comes at a pivotal time when digital transformation is accelerating across industries, and there is a growing demand for real-time data and actionable insights. The timing aligns with rising subscriber expectations and stringent performance requirements, particularly for Communications Service Providers (CSPs) and webscalers. Accedian's technology will enhance Cisco's network assurance capabilities, providing the fine-grained visibility needed to meet these challenges.

Why Was Accedian Acquired?

Market Expansion: The acquisition of Accedian allows Cisco to expand its market presence in the network performance monitoring and service assurance sectors, particularly for service provider transport and 5G networks. Accedian's customer base includes three-fourths of the world's largest communication service providers (CSPs), which could help Cisco in the enterprise 5G market.

Technology Integration: Accedian's high-performance network and user experience monitoring technology will be integrated with Cisco’s existing network assurance and analytics portfolio, including Cisco ThousandEyes assurance capabilities. The Skylight Analytics platform, known for its granular end-to-end visibility, will enhance Cisco's capabilities in service assurance, analytics, and performance measurement.

Competitive Advantage: By acquiring Accedian, Cisco strengthens its approach to network and service assurance, enabling it to offer more comprehensive and high-performance solutions. This acquisition also prevents competitors from acquiring Accedian, thereby maintaining Cisco's leadership in the networking industry. The integration of Accedian's technology supports Cisco's strategic plans to develop a cloud-based service for managing its networking and security products, known as Networking Cloud.

Acquisition Terms

  • Acquisition Price: The estimated acquisition price is $370 million.
  • Payment Method: The payment method was not publicly disclosed.
  • Key Conditions or Agreements:
    • The transaction is expected to close in the first quarter of Cisco’s fiscal year 2024, pending regulatory approvals and other customary closing conditions.
    • Accedian's team will join Cisco's Data Center and Provider Connectivity organization.
    • Accedian's network performance monitoring technology will be integrated into Cisco's Network Assurance portfolio.
    • Cisco plans to link Accedian-collected data into Cisco ThousandEyes for a comprehensive view of the enterprise WAN.
    • Existing customers and partners of both Accedian and Cisco should continue to contact their respective representatives for any questions about products or services.

Impact on Accedian

The acquisition of Accedian by Cisco has led to significant changes in operations and management. Accedian's team has been integrated into Cisco's Data Center and Provider Connectivity organization, ensuring a seamless transition. This move aligns with Cisco's strategy to enhance its network assurance and analytics portfolio. The integration of Accedian's Skylight Analytics platform and microsecond-level sensors into Cisco's offerings is expected to bolster Cisco's capabilities in network performance monitoring, particularly for 5G networks and closed-loop automation.

Accedian's product offerings and services are set to expand under Cisco's umbrella. The acquisition will enhance Cisco's Network Assurance portfolio, providing end-to-end assurance for unified experiences. Accedian's technology will complement Cisco's Internet for the Future carrier infrastructure and software solutions, offering more comprehensive solutions to service provider customers. Employee reactions have been positive, with excitement about future growth, while customers anticipate improved service assurance and network performance monitoring capabilities. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly.