Riverbed acquires SD-WAN provider Ocedo

Gartner says 30 percent of enterprises will use SD-WAN products in all their branch office by 2019

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Riverbed acquires SD-WAN provider Ocedo Kennelly:Riverbed is well positioned to help businesses reap the benefits of newer network architectures that are software-defined.
By  David Ndichu Published  January 28, 2016

Riverbed Technology, provider of application performance infrastructure solutions, has announced the acquisition of Germany-based Ocedo, a provider of software-defined networking and SD-WAN (software-defined wide-area-network) solutions. 

The acquisition of the privately-held company is set to expand and accelerate Riverbed’s delivery of SD-WAN solutions to customers, while creating significant new growth opportunities for Riverbed and its partners.   

 “Ocedo is a compelling and strategic acquisition for Riverbed.  Their innovative software-defined networking solutions perfectly complement our own strategic investments in R&D, expanding our position to aggressively compete in the emerging markets for software-defined networks and SD-WAN, bringing disruption to the multi-billion dollar branch router market,” said Jerry M. Kennelly, Riverbed Chairman and Chief Executive Officer.  “As the industry goes through one of the largest transformations in a decade, with cloud and hybrid IT environments requiring a different approach to networking, Riverbed is well positioned to help businesses reap the benefits of newer and superior network architectures that are application-centric and software-defined.”

SD-WAN solutions streamline and simplify how hybrid WANs are deployed and managed, enabling IT to provide fast and secure delivery of applications hosted on-premises or in the public cloud with greater agility and ease.  The SD-WAN market is expected to grow significantly in the next several years.  According to Gartner, “by the end of 2019, 30% of enterprises will use SD-WAN products in all their branch offices, up from less than 1% today.” (Gartner, Inc., Market Guide for Software-Defined WAN, Bjarne Munch, December 1, 2015)

An early pioneer in software-defined networking, Ocedo has developed an advanced software-defined branch office networking solution, with a portfolio of products that include secure gateways, wireless access points and switches, and an integrated cloud management system that enables zero-touch provisioning and centralized control of remote devices and network services.

“The acquisition of Ocedo is a game changer, as it immediately positions Riverbed among the leaders of software-defined and SD-WAN solutions,” said Zeus Kerravala of ZK Research.  “Coupled with Riverbed’s industry-leading portfolio of application performance infrastructure, this move solidifies Riverbed’s position as a trusted provider of innovative and high performance network software solutions, at a critical time when enterprises are looking to deploy next-generation networks.”

Riverbed’s application-centric approach to software-defined networking provides fast and agile application delivery to the edge of distributed enterprises. Additionally, Riverbed offers a comprehensive Application Performance Platform that delivers end-to-end visibility, optimization and control, enabling enterprises to realize the full benefits of software-defined networking solutions.

This acquisition further fuels Riverbed’s Project Tiger initiative, announced in Fall 2015, in which Riverbed plans to bring to market a new suite of application-centric SD-WAN solutions that will eliminate the need for traditional branch routers, provides cloud-based zero-touch provisioning & management, and will be based on a new software operating platform that enables agile service-chaining for Riverbed-native and 3rd-party services and applications. Riverbed plans to launch an initial SD-WAN solution in Q1 2016 to complement and expand the Riverbed Application Performance Platform.

In addition to innovative technology, Ocedo brings to Riverbed experienced leaders and engineering talent.  The founding team of Ocedo brings decades of experience in the networking industry, including co-founding Astaro, a network security company acquired by Sophos in 2011. 

“We are very excited to join the Riverbed team, as they are as passionate and committed as we are to disrupting the status quo by delivering superior networking solutions in today’s cloud, mobile and hybrid world,” said Jan Hichert, CEO of Ocedo.  “I’m confident that Ocedo’s technology will thrive and grow within Riverbed, and we’re energized to continue to innovate and develop solutions that will change how applications are delivered in the modern enterprise.”

The transaction closed on January 19, 2016. Financial terms of the deal were not disclosed.

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