Communications technology provider Cisco Systems has completely acquired its majority-owned data centre technology start-up Insieme.

The technology provider earlier owned 85% stake in the start-up and expects the transaction to strengthen its position in the network equipment market.

Cisco has also unveiled software defined networking (SDN) technology products developed by Insieme that include features similar to high-end network hardware.

Cisco chief executive John Chambers said the company’s approach could save customers money and create a multibillion-dollar dollar business.

"Reset the stage for IT for the next decade," Chambers added.

The new products include the Nexus 9000 family of network switches and a software controller called the Cisco Application Policy Infrastructure Controller (APIC).

The Nexus 9000 family of network switches have been launched, while APIC is scheduled to be available for sale from the first half of 2014.

According to Reuters, the sale was valued at about $863m.