The latest deal of Cisco is a smart move towards data and cloud technologies
Without any jittery the eminence of data in today’s enterprise is getting audacious. After Microsoft tow of buying LinkedIn for a mammoth $26.2Bn, Cisco hastily bought AppDynamics for $3.7Bn. This acquisition was a stupor as the startup was set to IPO. The deal for Cisco has been known to enforce towards the data and foster its cloud portfolio. With the changing landscapes of the tech-world and business need, Artificial intelligence, Machine Learning, Big Data to score high results – and companies like Cisco and other big tech companies is well aware of it.
What AppDynamics gives Cisco a tool for monitoring the performance of applications, regardless the application delivery platform. The idea is to find issues and deal with them before they become a big problem for end users. The worst case is a full outage, but there are countless other issues that can cause slow-downs and other headaches, as every user is keenly aware. As it monitors these applications, AppDynamics is gathering tons of data about the applications, the connections to other systems, the devices being used to connect to the application and so forth. All of this data is a natural byproduct of the monitoring process — and could have great value when combined with other network information.
In a blog post announcing the deal, Cisco’s VP of corporate business development, Rob Salvagno cited the AppDynamics data as a big reason for the purchase. “As companies across industries are expanding their digital infrastructure, IT departments are faced with vast amounts of complex, siloed data. AppDynamics helps many of the world’s largest enterprises translate this data into business insights and empowers them to drive value for their customers in today’s digital world,” Salvagno wrote.
Ray Wang, founder and principal analyst at Constellation Research, said that it was critical for Cisco to find an M&A candidate that could handle the future of apps in-network, but he says this deal is about more than pure applications performance management.