Vyatta receives $11M in funding, led by Comcast

Interesting twist is that Comcast is a big Cisco customer

Open source router startup Vyatta received an $11 million cash infusion this week, led by Comcast's venture funding arm.

Open source router startup Vyatta received an $11 million cash infusion this week, led by Comcast's venture funding arm.

Industry observers say the investment in Vyatta by Comcast Interactive Capital (CIC) is an interesting move because it establishes a relationship between an up-and-coming Cisco rival and an enormous Cisco customer. JPMorgan Partners, ComVentures and ArrowPath Venture Partners also participated in the latest funding round for Vyatta, which has garnered $18.5 million in total funding.

“Service providers are constantly on the lookout for solutions that can generate new revenue streams,” said Deepak Sindwani, a CIC principal, in a statement. "Vyatta enables several new potential managed service bundles for small and medium-sized business and enterprise markets." He praised Vyatta's open source technology and reliance on industry-standard x86 hardware over proprietary network systems.

CIC invests in other technology companies that compete with Cisco, as well as in firms where Cisco also has a stake. Common CIC-Cisco investments include security vendor Arbor Networks; semiconductor maker Entropic Communications and security information-management company netForensics; as well as Arroyo Video Solutions, which Cisco bought for $92 million in 2006.

Vyatta has marketed itself aggressively as a low-cost, open source alternative to Cisco and Juniper Networks in the WAN-access router market. Founded in 2004, Vyatta makes the Open Flexible Router, a software-based router, firewall and VPN product built on open source technology, such as Linux, Extensible Open Router Project, and Free Secure WAN. Vyatta offers the product as a free download, with various annual support services available. The company also offers the product as an appliance, with the code preinstalled on Dell servers and WAN connectivity gear from Sangoma.

Learn more about this topic

Podcast: Swapping out Cisco for VyattaFor open source networking, no open source guru required, Vyatta execs say11/28/06Open source router tempts company to bid Cisco firewall farewell10/02/06
Insider Tip: 12 easy ways to tune your Wi-Fi network
Editors' Picks
Join the discussion
Be the first to comment on this article. Our Commenting Policies