Cisco Adds App Intelligence Provider AppDynamics for $3.7B

AppDynamics' cloud application and business-monitoring platform enables enterprises to improve application performance in order to save time and money.

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Cisco Systems, the world's largest IT networking provider that has been busy moving into new markets during the last several years, revealed Jan. 24 that it will acquire AppDynamics Inc., a privately held application intelligence software provider, for $3.7 billion in cash.

San Francisco-based AppDynamics' cloud application and business-monitoring platform enables large enterprises to improve application and business performance in order to save time and money.

Digitization and the transition to cloud are forcing the worlds of IT and business to blend together, said Rob Salvagno, Head of Corporate Development and Cisco Investments.

"Combining real-time visibility and intelligence at the network, security and application layers is transformational for companies. It can provide them with insight into the state of their business and most importantly, into the quality of their customers' experiences," Salvagno said.

"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."

In the digital economy, applications--mobile and web-based--are now central to most businesses. But as things get simpler for consumers to shop and interact with enterprises on the web, they get more complex for companies trying to stay ahead of rising customer expectations.

Cisco will use AppDynamics to provide its customers with intelligent and actionable insights, helping them make speedy business decisions and improve business performance, Salvagno said.

"Applications have become the lifeblood of a company's success. Keeping those apps running and performing well has never been more important. Unfortunately, that job has only gotten harder, as IT departments and developers struggle with a tangled web of disconnected, complex data that's hard to understand," said Rowan Trollope, Cisco senior vice president and general manager of Cisco's Internet of Things and Applications Business Group.

"The combination of Cisco and AppDynamics will allow us to provide end-to-end visibility and intelligence from the network through to the application."

AppDynamics will continue to be led by CEO David Wadhwani as a new software business unit inside Cisco's IoT and Applications business and will report to Trollope. The acquisition is expected to close in Cisco's third quarter of fiscal year 2017.

AppDynamics was planning to go public on Jan. 25. Go here for more details.

Editor's note: Cisco and AppDynamics announced Jan. 25 that they will host a conference call for investors and media on Jan. 25 at 10 a.m. PT/1 PM ET to discuss Cisco's announced intent to acquire AppDynamics. Cisco Vice President of Corporate Development Rob Salvagno will be joined by Cisco's Senior Vice President and General Manager, IoT and Applications business, Rowan Trollope, and AppDynamics CEO, David Wadhwani.

Date: Wednesday, Jan. 25, 2017
Time: 10 a.m. (PT)/1 p.m. (ET)
To listen via telephone: 888-469-0509; 517-308-9484 (for international callers)
Passcode: 1959867
RSVP: No RSVP is necessary
Replay: An archived version of the call will be available on Cisco Systems' Investor Relations website.

Chris Preimesberger

Chris Preimesberger

Chris Preimesberger is Editor of Features & Analysis at eWEEK, responsible in large part for the publication's coverage areas. In his 12 years and more than 3,900 stories at eWEEK, he has...