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Cisco buys SD-WAN startup Viptela to bolster its Intelligent WAN portfolio

With the deal, Cisco is looking to take its IWAN branch-office networking franchise into the cloud. This is a key move for two reasons: Viptela provides a large-scale, cloud-first service for complex global SD-WAN deployments, and it also offers a subscription-based recurring software revenue model that Cisco is increasingly adopting to eventually supplant its hardware-focused business model.