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Why Cisco Bought Meraki

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November 22, 2012 | Comments (0)

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With more of us buying and using smartphones and tablets, Internet traffic is set to explode and Cisco wants to capture as much of the upside as it can get. For Cisco Systems (Nasdaq: CSCO  ) , selling big-ticket gear won't be enough. Meraki, which Cisco acquired for $1.2 billion this week, could fill the gap with a suite of products for building and managing low cost Wi-Fi networks via the cloud.

See more in the following video with Fool contributor Tim Beyers.

Will the deal make a difference in the networker's growth story? Cisco needs as much help as it can get. Once a highflying tech darling, the company is now on the radar of value-oriented dividend lovers. Get the lowdown on the routing juggernaut in The Motley Fool's new premium report, written by Tim himself. You'll also get a full year of free updates to keep you informed as the story changes. Just click here now to read more.

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Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Rackspace Hosting at the time of publication. Check out Tim's Web home, portfolio holdings, and Foolish writings, or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

The Motley Fool owns shares of Amazon.com and Cisco Systems. Motley Fool newsletter services have recommended buying shares of Rackspace Hosting and Amazon.com. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.


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