Cisco plans to acquire OpenDNS for $635m

Cisco is to acquire cloud-based network security provider OpenDNS for $635m.

OpenDNS’ offering combines DNS services with a managed network security service that tracks devices and traffic and helps mitigate malware or denial of service threats. But it also adds predictive intelligence capabilities by using big data analytics to metabolise real-time behaviour and machine learning algorithms to automate mitigating action.

Cisco said the acquisition would strengthen security services portfolio, a core element of its Internet of Things (IoT) strategy.

“As more people, processes, data and things become connected, opportunities for security breaches and malicious threats grow exponentially when away from secure enterprise networks,” said Hilton Romanski, Cisco chief technology and strategy officer.

“OpenDNS has a strong team with deep security expertise and key technology that complements Cisco’s security vision. Together, we will help customers protect their extended network wherever the user is and regardless of the device.”

As part of the deal, which is expected to close sometime in the first quarter of next year, the OpenDNS team will join the Cisco Security Business Group led by David Goeckeler, the division’s vice president and general manager.

Targeting the network has become an increasingly important component of enterprise IT security, particularly with the explosion of malware and denial of service attacks – and will continue growing in importance as the IoT brings vast volumes of automated connectivity and data transaction.

The trend has seen more emphasis place on cloud-based security services, which can act as a security perimeter without needing to install anything with a datacentre. According to Gartner, the cloud-based security market with grow from $2.1bn in 2013 to $3.bn this year.