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Ann Arbor's Duo Security sold for $2B: What it teaches us

50 pointsby fjkover 6 years ago

5 comments

segmondyover 6 years ago
Goes to show that one can build a Unicorn outside of the Bay area. That's the biggest take away. The Bay will always be special because of the capital out there, but I'm a firm believer that this will erode away with time. Folks are going to go over there, get the money and build in a different location.
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ram_rarover 6 years ago
I;m not sure, why is this article in HN. The only thing I garner is, Cisco is famous for throwing zealous amount of money for companies (AppDynamics,Jasper,Meraki,Viptela,Webex,Jabber...) , instead of building them in-house.
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LinuxBenderover 6 years ago
Is there a good alternative to Duo? Is there a decent on-prem solution?
dj-wonkover 6 years ago
To fuse some snippets from Fortune and the New York Times:<p>&quot;Cisco has agreed to buy Duo Security, a 700-person strong cybersecurity startup based in Ann Arbor, Mich., for $2.35 billion in a combination of cash and stock.&quot; [1]<p>&quot;Duo was last privately valued at $1.17 billion after a $70 million financing round in October. Cisco participated as an investor in that round.&quot; [1]<p>&quot;Cisco has a long history of buying security startups. Some of its acquisitions in recent years include Sourcefire, an intrusion detection tech firm (2013); Threatgrid, a malware analyzing firm (2014); OpenDNS, a domain name service provider (2015) and Lancope, a network monitor (2015).&quot; [1]<p>&quot;Duo’s technology allows companies to provide employees or customers with remote access. Its software verifies the identity of users, scans their device for security weaknesses and then lets them connect, a kind of supercharged username-and-password. Cisco said it would integrate Duo’s technology across its network, device and cloud platforms.&quot; [2]<p>&quot;The acquisition is part of a trend in which cloud providers and cybersecurity companies are trying to bolster the services they offer.&quot; [2]<p>&quot;But Cisco has hardly been the only buyer. In the past 12 months, Oracle acquired Zenedge, Amazon purchased Sqrrl, VMWare struck a deal for CloudCoreo, McAfee bought Skyhigh, and Symantec acquired Skycure.&quot; [2]<p>&quot;The pace of such deals — particularly in identity management, like Duo — should only pick up over the coming years as companies try to strengthen their defenses against cyberthreats, Mr. Ives said.&quot; [2]<p>[1] <a href="http:&#x2F;&#x2F;fortune.com&#x2F;2018&#x2F;08&#x2F;02&#x2F;cisco-buys-duo-security&#x2F;" rel="nofollow">http:&#x2F;&#x2F;fortune.com&#x2F;2018&#x2F;08&#x2F;02&#x2F;cisco-buys-duo-security&#x2F;</a><p>[2] <a href="https:&#x2F;&#x2F;www.nytimes.com&#x2F;2018&#x2F;08&#x2F;03&#x2F;business&#x2F;dealbook&#x2F;cisco-duo-acquisition-cloud.html" rel="nofollow">https:&#x2F;&#x2F;www.nytimes.com&#x2F;2018&#x2F;08&#x2F;03&#x2F;business&#x2F;dealbook&#x2F;cisco-d...</a><p>For a more pointed perspective:<p>&quot;But the worry here is that Cisco is going to murder the golden goose—and, as a former Cisco customer, I’m struggling to feel anything but dread about all the ways in which this acquisition might kill everything that’s good about Duo.&quot; [3]<p>&quot;In my opinion—which is informed by my own anecdotal experience—Cisco belongs on the same shelf as Oracle when it comes to businesses that exhibit a profit-above-all-else mindset. From my point of view as an enterprise customer, Cisco consistently came across as unswervingly committed to maximum revenue extraction at every single point in its relationship with a customer. The company’s per-feature licensing was (and remains) so expensive and so complex that the whole product portfolio seemed designed around creatively separating customers from their capital first and actual network&#x2F;SAN administration a distant second.&quot; [3]<p>[3] <a href="https:&#x2F;&#x2F;arstechnica.com&#x2F;information-technology&#x2F;2018&#x2F;08&#x2F;heads-up-2fa-provider-duo-security-to-be-acquired-by-cisco-ugh&#x2F;" rel="nofollow">https:&#x2F;&#x2F;arstechnica.com&#x2F;information-technology&#x2F;2018&#x2F;08&#x2F;heads...</a>
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ISLover 6 years ago
That some people had access to $2B and wanted to buy Duo, and the owners of Duo thought that $2B was an acceptable exchange?