Cisco (CSCO) has spun off and provided $100M in funding for Insieme, a project to create...

|About: Cisco Systems, Inc. (CSCO)|By:, SA News Editor

Cisco (CSCO) has spun off and provided $100M in funding for Insieme, a project to create switches based on software-defined networking (SDN). In an employee memo, Cisco says it retains the right to buy Insieme for up to $750M, and outlines its SDN strategy. Cisco faces a tricky balancing act: it needs to compete with the SDN solutions of upstarts, but has to avoid cannibalizing sales of its high-margin, proprietary gear.