Cisco (News - Alert) is scooping up California cloud-based software management provider MaintenanceNet for $139 million, the company announced today. The company, which specializes in helping manufacturers easily track their warranties and service agreements with customers, has counted Cisco as a customer since 2009.
The acquisition comes on the heels of last week’s announcement that it was purchasing OpenDNS for $635 million. Cisco’s Global Customer Success (GCS (News - Alert)) organization was using the MaintenanceNet solution, and the company will be added to that branch of Cisco. The organization will continue to serve existing outside customers like Panasonic, CDW, Ingram Micro and Lenovo (News - Alert) as well as being used internally by Cisco.
“As more of the business models in IT shift to a recurring revenue model for products, software, solutions and services, the ability to easily implement, track, manage and renew contracts is critical to maximizing revenue potential,” wrote Debbie Dunnam, senior vice president of GCS at Cisco, in a blog post announcing the MaintenanceNet acquisition. “These transitions create opportunities and change for our customers, our partners, and for Cisco.”
MaintenanceNet not only benefits manufacturers, but their partners and resellers as well. The company’s solutions send automatic renewal notices, pinpoint items purchased by customers that are not covered by service plans and generally help simplify contract renewal processes. The result is that Cisco’s partners will be better able to capture recurring revenue streams from cloud services contracts.
“Just as MaintenanceNet’s business was built with and through partners, this acquisition demonstrates Cisco’s focus on serving the partner go-to-market strategy and its significant role in our customers’ success,” wrote Dunnam. “While we have worked together for some time, I look forward to welcoming the MaintenanceNet team into the Cisco family as we continue to innovate and grow our business.”
The MaintenanceNet acquisition marks the fifth buyout for Cisco this year of a U.S.-based software company.