Cisco Acquires JouleX for $107 Million, Extends Energy Management Offering
Cisco Systems, Inc. announced its intent to acquire privately held JouleX, Inc., a leader in enterprise IT energy management for network-attached and data center assets, for $107 million. JouleX, with headquarters in Atlanta, GA, complements Ciscoâ€™s existing services portfolio by using the capabilities of the network to gain visibility into and control energy usage across global IT environments. JouleX provides software for networked devices for enterprise and data center energy management, analytics, policy governance and compliance.
JouleXâ€™s energy management solution, together with Cisco EnergyWiseâ„¢, will provide customers with a simple way to measure, monitor and manage energy usage for network and IT systems across the enterprise, without the use of device-side agents, hardware meters or network configurations. JouleXâ€™s software helps to reduce energy costs by monitoring, analyzing and managing energy usage of all network-connected devices and systems through a set of policies derived through analytics tailored for an enterpriseâ€™s needs.
â€œJouleXâ€™s technology will strengthen Cisco Servicesâ€™ Smart Offerings and complements our evolving services strategy. It extends our â€˜Internet of Thingsâ€™ capabilities and is a good alignment to Cisco EnergyWise,â€ said Faiyaz Shahpurwala, senior vice president, Industry Solutions. â€œWith network-enabled devices increasing exponentially, our partners and customers are asking for this solution today to operationalize their energy management capabilities in the network and reduce cost. JouleXâ€™s cloud-enabled, agent-less architecture will allow our partners and customers to quickly deploy this solution at scale in addressing their IT energy management needs.â€
The acquisition of JouleX exemplifies Ciscoâ€™s innovation framework and supports Ciscoâ€™s five foundational priorities by enhancing our software and service offering across all customer segments and advancing our business and technology architecture. The JouleX acquisition is aligned to Ciscoâ€™s goals of developing and delivering innovative energy management solutions that streamline data and work flow across a unified network.
JouleX was founded in Munich and currently has research and development operations in Kassel, Germany. Upon completion of the acquisition, JouleX employees will be integrated into the Connected Energy Solutions team within Ciscoâ€™s Industry Solutions Group, reporting to David Goddard, vice president and general manager. Under the terms of the agreement, Cisco will pay approximately $107 million in cash and retention-based incentives in exchange for all shares of JouleX. The acquisition of JouleX is expected to be complete in the fourth quarter of fiscal year 2013, subject to customary closing conditions.