Cisco to acquire AppDynamics

Cisco has agreed to purchase software maker AppDynamics for $3.7 billion. The acquisition comes right before AppDynamics was supposed to go public in the first tech IPO for the year. Cisco will be adding the software and services offered by AppDynamics to its portfolio to help its corporate customers in monitoring and fine tuning the performance of their respective business systems. Through a more detailed overview, companies are able to better determine performance issues and possible causes which may be affecting the rest of their processes. The idea behind the offerings of AppDynamics is to catch the problems before they become major ones. Through the acquisition, Cisco will be getting another touchpoint with clients and adding upon its growing list of software and services.
“The combination of Cisco and AppDynamics will allow us to provide end to end visibility and intelligence from the network through to the application; which, combined with security and scale, will help IT to drive a new level of business results,” said Cisco senior VP and Internet of Things and Applications Business Group general manager Rowan Trollope in a press release. AppDynamics President and CEO David Wadhwani stated the company’s excitement in joining Cisco, as that will allow AppDynamics to help more companies worldwide in building and running the applications required to succeed in the digital landscape of today. Wadhwani will still lead AppDynamics, but the company will become a new unit under the Internet of Things and Applications division of Cisco.
The acquisition continues the work of Cisco CEO Chuck Robbins, who has been snapping up software and services companies to boost the revenue growth of Cisco. Such a shift in direction is needed as the computing industry continues to move away from the fixed hardware and software solutions offered by Cisco and into cheaper options such as cloud-based systems. In February of last year, Cisco acquired Jasper Technologies, the developer of a cloud-based Internet of Things service platform, for $1.4 billion in cash.