Cisco Seeks to Bolster Position in Metro Ethernet with Greenfield Acquisition

Maybe Cisco Systems didn’t like the view of at least one market analyst suggesting that Nortel Networks is well placed to compete effectively and perhaps dominate the Metro Ethernet marketplace.

More likely, Cisco heard the candid criticism of some service-provider and carrier customers demanding stronger offerings from the networking titan. Whatever the motivation, Cisco announced this morning a definitive agreement to acquire privately held Greenfield Networks Inc., which develops semiconductors for the Metro Ethernet market.

Cisco did not disclose financial terms of the deal.

Greenfield’s 60 employees — based in Sunnyvale, not far from Cisco’s sprawling San Jose headquarters, and in Bangalore, India — will join Cisco’s Ethernet and Wireless Technology Group.

Perhaps belaboring the obvious, Kathy Hill, senior vice president of Cisco’s Ethernet and Wireless Technology Group, said the following regarding the acquisition:

By integrating Greenfield Networks technology with Cisco’s family of Metro Ethernet switches, we will be able to improve time to market of new carrier-class features to our service provider partners,

One would expect that to be the general plan.

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