Cisco Systems and OpenDNS: Strategic Integration

With more than 72,000 employees and revenues approaching the $50B mark, Cisco Systems is one of the largest information technology and networking firms globally. As the company grew and expanded into different lines of businesses, Cisco consistently looked outwards for acquisition targets that could supplement its considerable size and reach. As a follow-up to its well-received $2.7B acquisition of SourceFire in 2013, which seamlessly integrated new cybersecurity offerings into the Security business group, Cisco began conversations with OpenDNS. OpenDNS was a fast-growing start-up with credibility in the cloud security space, but there were also concerns about how its Silicon Valley culture and flat organizational culture would mesh with Cisco’s more staid corporate environment. This case considers the dilemmas that two Cisco executives, Karen Ashley and Dianne Nakanishi, face as they make a final decision about whether and how to acquire and integrate OpenDNS.