Cygna Labs completes acquisition of Diamond IP for added security expertise

Cygna Labs, which provides enterprises worldwide with DDI software that collectively forms the foundation of IP networks, announced today that it has completed its acquisition of Diamond IP, a provider of connectivity, cloud, and security services, from British Telecom (BT). 

Terms of the transaction were not revealed.

Christian Ehrenthal will continue as president and CEO of Cygna Labs, and Michael Dooley was named senior vice president of the DDI business unit, the companies said in a joint media advisory. 

Miami, Florida-based Cygna Labs also provides enterprises with cloud security and compliance IT software. Diamond IP will add a loyal set of customers along with its cloud security expertise, the company said.

Defining DDI networking software

DDI is an acronym for a set of other acronyms; it stands for domain name system (DNS),  dynamic host configuration protocol (DHCP), and IP address management (IPAM). DDI is used as a shorthand acronym to describe the integration of these three core components of networking into one management solution.

Enterprises use Cygna Labs’ DDI products and services, in addition to its industry-leading security and compliance solutions, to detect and proactively mitigate data security threats, pass compliance audits and increase the productivity of their IT departments. 

“Modern DDI systems serve as the heart of today’s diverse and hybrid networks,” Alexander Haecker, the group CEO of Cygna Labs, said in a media advisory. “They enable consistent and accurate tracking of IP address and DNS assignments.”

DDI market growing at a fast clip

This market is growing at a 16%  annual rate, according to industry analyst MarketsAndMarkets. The post-COVID-19 global DDI market size is expected to move from $400 million in 2021 to $836 million by 2026, at a Compound Annual Growth Rate (CAGR) of 15.9%.

The major factors fueling the DDI market include the rise of IoT platforms, increasing BYOD trend at workplaces, expansion of existing DDI solutions and adjacent network services, and significant adoption of virtualization by organizations, the analyst said. Moreover, the increasing need for IPAM and the advent of IPv6 provide lucrative opportunities for DDI vendors are other factors, M&M said.

The ecosystem of connected devices witnessed a surge due to the COVID-19 pandemic, and DDI demonstrated its added value in this increasingly connected market, M&M said. Nearly all people working from home required networks to be more resilient for functioning properly, fueling the need for efficient DDI solutions and services. Hence, the rise of IoT platforms acted as a driver for the DDI market, the analyst said. 

Cygna competes in a market that includes Alcatel-Lucent, BlueCat Networks, Cisco Systems, Incognito Software Systems, BT Group, Infoblox, SolarWinds and TCPWave. It is considered among the largest providers of DDI ware in the world.

“The closing of this acquisition brings us one step closer to realizing our mission of providing a seamless approach to security and compliance solutions,” Ehrenthal said. “We look forward to this next chapter as we continue our ongoing growth trajectory.”