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Cisco Acquiring Kubernetes Application Security Provider Portshift

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Cisco Systems is acquiring Portshift, which develops a Kubernetes-native security platform for application containers, Cisco disclosed today. Financial terms were not disclosed, but the purchase price was roughly $100 million, according to a Globes report.

This is M&A deal number 397 that ChannelE2E has covered so far in 2020. See the full M&A deal list here.

Portshift, based in  Tel Aviv, Israel, has the following company mission: To enable DevOps, Security and Operations to team up and utilize Portshift's identity-based workload protection for continuous security of their cloud-native applications.

Portshift develops software that ensures secure Kubernetes clusters, the company says. Key use cases include:

  • Visibility
  • Vulnerability Management
  • Configuration Management
  • Compliance
  • Network Segmentation
  • Kubernetes Network Encryption
  • Security Automation for DevOps

Portshift raised $5.3 million in seed funding from Team8 in November 2018. Additional technology partners include Amazon Web Services, Google Cloud Platform and Microsoft Azure. It's unclear if the company has a channel partner program for VARs, IT consultants and MSPs (managed IT service providers).

Cisco Systems Explains Portshift Acquisition

Liz Centoni, SVP and GM, Cisco Systems
Liz Centoni, SVP and GM of IoT, Cisco Systems

In a blog about the deal, Liz Centoni, Cisco Senior VP and GM of IoT, wrote:

"Portshift aligns to Cisco’s approach of providing secure connectivity between users, devices and apps, wherever they reside; visibility and actionable insights from the end user to the application; a simplified consumption model that includes cloud-first Secure Access Service Edge (SASE) capabilities; commitment to an open source and open standards philosophy; and breaking down the siloes between developers, security teams, infrastructure teams, operations and SRE teams."

The deal is expected to close in the first half of Cisco's fiscal year 2021 -- which generally means Cisco should official own Portshift before January 1, 2021. When the deal closes, the Portshift team will join Cisco’s ET&I group. Headcount figures associated with the deal were not disclosed.

Cisco Systems: Acquisitions and Business Evolution

Cisco continues to extend its business from traditional networking hardware toward SaaS-based services that extend across multiple clouds and on-premises opportunities. The journey has involved some business cost cuts along with multiple acquisitions.

Recent acquisitions include:

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.