Cisco steps up smart-grid plans with Arch Rock buy

Cisco is aiming at the utilities market with smart grid technologies

Cisco is to acquire Arch Rock Corporation, a firm specialising in wireless technology for smart-grid applications, as it seeks to provide advanced metering infrastructure for utility industries.

Arch Rock will allow Cisco to connect smart meters and other intelligent devices over a wireless mesh network using its strategic alliance with Itron to develop smart-metering technology over its Openway platform.

"Arch Rock's wireless mesh technology enhances Cisco's IP-based, end-to-end smart-grid offerings," said Laura Ipsen, general manager of Cisco's Smart Grid business unit.

"This acquisition further positions Cisco as a strategic partner to utilities working to manage power supply and demand, improve the security and reliability of energy delivery, and optimise operational costs."

No financial information was given, but Cisco expects the deal to be completed by the second half of the year.

Bob Gohn, a senior analyst with Pike Research, said in a blog post that Arch Rock is a good fit for Cisco, and will enable its partnership with Itron to be used to full effect.

"The path forward on the Cisco and Itron platform appears significantly clearer. Starting with Arch Rock's technology, Cisco adds its special sauce, and Itron integrates it all into the OpenWay platform, refining it along the way," he wrote.

"All in all, if a standard advanced metering infrastructure communications platform is the goal, then I cannot imagine a better combination than Cisco's architectural breadth, Itron's experience and savvy, and Arch Rock's technology. "

Gohn added that the move will allow Arch Rock to get its technologies into the business space, rather than having to compete with existing smart grid vendors.

"I thought it highly unlikely that Arch Rock could get major players to dump their own efforts and outsource this key architectural component. But Cisco can, as evidenced by the big Cisco/Itron strategic alliance," he said.

"What will happen to Arch Rock's hardware products is unclear, but I would expect them to fade away."