The rumor mill is rife just after VMworld with perhaps none bigger than the one SDNCentral wrote about this week: Cisco possibly acquiring SDN nemesis Big Switch Networks. Cisco and Big Switch declined comment, according to SDNCentral's Craig Matsumoto, but he writes that tongues were wagging at VMworld that something like that was up.
A high-flyer up to and including its launch 10 months ago, Big Switch and OpenFlow have become yesterday's news after VMware rolled out its NSX network virtualization platform at VMworld, and the industry awaits Cisco's launch of the Insieme Networks programmable networking line. Meanwhile, OpenDaylight has accomplished what some believe was its original intention: marginalizing Big Switch by opting for a Cisco/IBM open source controller code base rather than Big Switch's Floodlight-based controller.
[DELAYED RESPONSE: Chambers: Cisco waited too long to address SDNs]
Matsumoto writes that the whisper number for acquiring Big Switch is a paltry $100 million, less than half of the company's valuation as of its 2012 funding round. The loss in value can be traced to a couple of things: not being bought shortly after VMware paid $1.26 billion for start-up Nicira, developer of the NSX platform; and former ecosystem partners - like Juniper - and non-partners, like HP and Alcatel-Lucent, developing or acquiring their own controllers.
"Nobody wanted to be dependent on Big Switch" in case the start-up was acquired by a competitor or raised the price of its technology to unattractive levels, says Gartner analyst Joe Skorupa.
SDNCentral then goes on to state a couple reasons why Cisco might want to acquire the SDN start-up: the personnel - Cisco already attracted VP of Engineering Howie Xu, while OpenFlow basher Prashant Gandhi went from Cisco to Big Switch; and the products, which include an OpenFlow controller and switch, SDN applications and a 'thin' switch. The post says this would give Cisco two controllers - OpenDaylight for open source
The Cisco Subnet blog is written by Network World managing editor Jim Duffy Visit the Cisco Subnet home page daily and while you are there, subscribe to the Cisco Alert e-mail newsletter, which includes news and views generated by the Cisco Subnet community as well as Cisco-related stories on Network World and elsewhere on the Web.
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