SAN JOSE, Calif. (AP) -- Cisco Systems Inc., the world's largest maker of networking equipment, said Tuesday that it agreed to buy privately held self-service information technology software provider newScale Inc. for an undisclosed amount.
The acquisition will beef up Cisco's "cloud computing" offerings, which refers to the process of running applications over the Internet instead of installing them on individual hard drives. The information entered in the programs is stored in data centers run by third parties.
The deal is expected to be completed in the second half of Cisco's fiscal 2011 year. When it is finalized, newScale will join Cisco's advanced services organization.
Cisco shares rose 16 cents to $17.29 in trading.