Cisco’s Acquisition of DUO
Write a brief statement describing an IT acquisition by an organization about which you have knowledge. State whether the organization believes the acquisition met its objectives (e.g., improved the performance of the organization). State why you believe the acquisition was successful, unsuccessful, or partially successful and the principal reasons for this result.
Cisco’s Acquisition of DUO
Acquisitions are becoming more common in this era of globalization because businesses have realized the growth they offer. Most recently, CISCO approached DUO, which is an IT security company and bought it off for over two billion dollars. Previously, Cisco had worked with Duo as one of its partners in security but after a while Cisco figured out that Duo could contribute more to their growth as a company. The co-founder of Duo, Song, says that he and his members were thrilled to work with Cisco since they had hoped to get such an opportunity where they would work with such a large company (McGrath, 2019). For Duo, they acknowledge that getting to the level of Cisco would have taken them many years but now they have gotten a boost to the top of the larder.
I think the acquisition was a successful one since both sides get to benefit. It is clear however that Duo will enhance the portfolio of Cisco since they will be able to provide the adequate security knowledge for Cisco as it prepares to expand (Blandin 2018). Duo has had a strict security culture where it employs a two factor authentication process through the use of a password and username that are sent to the users mobile phone. The fact that Duo does not trust any user makes their algorithims perfect for a company that deals with security. Cisco will in this case have acquired a boost in its security systems, making their clients find them trustworthy. Growth for Cisco may be a smooth ride as they transition to more advanced and innovative ventures. The acquisition is an advantage because it provides strength from within the company.
References
Blandin, H. (2018). Cisco Acquisition Of Duo Security Makes Sense. Retrieved from https://seekingalpha.com/article/4194273-cisco-acquisition-duo-security-makes-sense
McHugh, M. (2019). ‘It came out of the blue’ – Duo Security founder on $2bn acquisition by Cisco | CRN. Retrieved from https://www.channelweb.co.uk/crn-uk/news/3072965/it-came-out-of-the-blue-duo-security-founder-on-usd2bn-acquisition-by-cisco
