It’s fair to say that Cisco’s appetite for growth and development has been growing even more ferocious over recent years. The worldwide leader for technology that has been working with internet innovation since 1984 recently announced that they were looking to bring a brand-new form of talent into their network, with the acquisition of AppDynamics Inc.
AppDynamics is a privately-owned company for application intelligence software based in San Francisco. Up until now, the company has been stirring interest in the communication sector with the development of business monitoring and cloud application solutions that allow for the largest companies in the world to improve their business and application-based performance. In simple terms, this company makes it easier for enterprises to ensure that they can use the cloud exactly how they want to.
The Cisco Acquisition
Although AppDynamics were originally preparing an initial public offering (IPO), those plans will obviously be laid to rest assuming that the new Cisco deal goes ahead without complaint. The purchase currently stands at a value of around $3.7 billion in cash and equity awards. Cisco hopes that their acquisition will allow them to absorb the new talent and technology that AppDynamics excels in, into its Applications and IoT business. Through application performance monitoring, AppDynamics will be adding complimentary capabilities to the network monitoring that Cisco already provides in the enterprise market. Thanks to the rise of the cloud, the bundling of capabilities such as these is predicted to be a fiercely growing trend.
According to the senior vice president and general manager of Cisco’s Applications and Internet of Things Business Group, Rowan Trollope, applications will soon become the lifeblood behind company success. As such, keeping those apps performing well will be essential. He believes that the new connection between AppDynamics and Cisco will allow both companies to provide comprehensive intelligence and visibility solutions all the way from the network to the applications being used, which should drive IT to a whole new level.
Empowering Today’s Companies
The CEO and president of AppDynamics, David Wadhwani, noted that the company has been working to successfully help companies build and run the applications they need to thrive in the highly digital and advanced world. As digital applications become more important, companies will need to redefine their relationships with customers through software, and AppDynamics believe that the new connection with Cisco will help to achieve that, enabling them to assist “more companies around the globe”.
As things become more convenient for customers in the digital world, they become increasingly complex for companies that are attempting to stay ahead of rising expectations. Together, Cisco and AppDynamics will be working to offer customers actionable and intelligent insights that will allow for speedier, more informed business decisions and enhanced performance overall.
At the end of the acquisition, AppDynamics will continue to lead by their CEO David Wadhwani as a new business unit for software will be constructed within the Cisco Applications and IoT business. However, he will report to Rowan Trollope. The full purchase is expected to be completed in the third quarter of 2017’s fiscal year, subject to conditions.
