The acquisition of energy-management company JouleX accomplishes a major priority for Cisco: entry into the market for data center infrastructure energy management. Other strategic motivations for the acquisition are JouleX Software-as-a-Service platform and a deeper foray into the “Internet of Things”, a Cisco spokeswoman explained in an email.

Cisco announced the intent to buy Atlanta-based JouleX for US$107m in cash Wednesday. The company expects to close the acquisition in the fourth quarter.

Once the deal closes, Cisco plans to leave JouleX product portfolio as is and integrate some of it with its own energy-management software called EnergyWise. “We plan to continue to sell the software capabilities JouleX currently offers,” the spokeswoman wrote.

“In addition, we will integrate part of JouleX’s technology more tightly into the EnergyWise portfolio and Cisco Smart Service offerings.”

JouleX has been compatible with EnergyWise since 2011, but will now be more tightly integrated.

EnergyWise comes as part of Cisco's IOS operating system for its networking gear. It is an energy-management control plane that monitors energy use of all network-connected devices, from intelligent power distribution units (PDUs) to laptops.

Integration with JouleX means EnergyWise can access and monitor more parameters of the devices it already monitors. “It allows Cisco to enable partners and customers greater reach into the IP network to monitor energy costs, help optimize energy consumption and increase data center efficiency and capacity,” the spokeswoman wrote.

The acquisition also plays to Cisco's Internet-of-things strategy, which is to enable as many devices as possible to communicate with each other over the network to improve operational efficiency.

See video of a FOCUS interview with JouleX chairman and CEO Tom Noonan about raising start-up capital