This latest acquisition is further evidence that the markets for XML, Web services, and SOA are experiencing significant consolidation, said Ronald Schmelzer, an analyst with ZapThink. “With IBM adding Datapower to their lineup, Intel adding both Sarvega and Conformative, and F5 Networks further maturing their offerings, the addition of Reactivity to Cisco’s offerings goes a long way to signaling that we’re in the era of incumbents increasingly dominating the space once pioneered by the startups,” Schmelzer said. “Of course, there are certainly outstanding startups like Layer 7 Technologies, Forum Systems, and companies like Xambala and Tarari still making waves in the market.”

Moreover, Reactivity adds robust security and policy management capabilities to the Cisco platform where it was “sorely lacking,” Schmelzer added. “Indeed, it seems that the AON [Cisco's Application-Oriented Networking technology] platform movement hasn’t yet resulted in as much market traction as originally supposed, and so it’s possible that this acquisition can give Cisco the kick in the pants it needs to effectively take advantage of a growing opportunity for management of XML and Web services traffic.”

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