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Cisco Buys Data Center Hardware Firm. 2005-05-31, HostMan.biz Networking equipment and network management provider Cisco Systems (cisco.com) announced on Thursday it would acquire privately-held data center network appliances firm FineGround Networks (fineground.com) for $70 million in cash and stock options. Founded in June 2000, the Campbell, California-based FineGround will provide Cisco's customers with advanced application-acceleration across networks for the secure and optimized delivery of Web-based applications. FineGround's technology uses application-optimization techniques that results in bandwidth efficiencies, decreased latency, and server offload across the network. The company's solutions allow organizations to secure and alleviate the risk of Web-enabled business transactions by incorporating application firewall functions. All of Fine Ground's 42 employees will join Cisco's Security Technology Group while CEO Nat Kausik continues to lead the team. FineGround's products will be sold through Cisco sales and channels, and its technology will be integrated with Cisco's ongoing development in this area. The acquisition is set to close in the fourth quarter of Cisco's 2005 fiscal year ending July 30.

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