Impact of Cisco Systems’ Purchase of Tail-f?

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What happens to Tail-f and to all of its customers after the acquisition by Cisco? Do those customers have to find a new partner? Will Cisco keep it open to all vendors and competitors? Does Cisco imbed it and no longer allow access to third parties?

Each customer probably had an agreement with Tail-f in case of an acquisition. It may be on a case-by-case basis, but in terms a macro answer, these days, there are not purchases without putting in a clause for M&A. For small suppliers, it can be quite detrimental. For example, regarding a component company that was purchased in 2013, large module and system suppliers, such as Finisar, Juniper, etc., put in a stipulation that if the vendor was acquired, and did not supply the devices at ridiculously low prices, then they can take hold of the IP, and produce them somewhere else. It is a Catch 22 situation. If one refuses to sign such a contract, then there is no business; if one goes along with the agreement, then the valuation of the company may go down.

One should also remember the CoreOptics situation in which there was evidently no end to the existing agreements with the customers after the purchase by Cisco.

(written by: Alka Swanson and Mark Lutkowitz)

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