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Has Cisco broken out of the network hardware box?

Michael Cooney | Jan. 27, 2017
Cisco’s AppDynamics buy could put new light on software strategy

“The information collected from AppDynamics is an ideal fit in Tetration,” Drogseth said.

“We have been looking at our analytics strategy more broadly in the past year and a big part of the value that we bring especially with the Tetration product, is the ability to deeply instrument and report on the infrastructure – what’s happening from UCS all the way to the network and getting that broad view from the security perspective. But taking all of that data and making sense of it …being able to connect the dots on all these parts of the enterprise hasn’t really been possible...you could see us making moves that we would tie these things together,” said Cisco’s Trollope.

Cisco will have to make a decision on which monitoring it will focus on as AppDynamics has its own monitoring system and technology, noted Milan Hanson, a senior analyst with Forrester Research.

“AppDynamics does monitor a lot of the same things Tetration does but just at a different level but both systems have similar purposes in that they both try to figure out application performance metrics and proactively prevent problems. It will be interesting to see how Cisco positions the two.”

The move also puts Cisco into a league of players who have big legacy software investments who also are trying to morph into the cloud world such as IBM, CA, HPE and others. It also creates a major player in the Application Performance Monitoring arena which included many players such as Net Scout, New Relic, DynaTrace to name a few.

Cisco on Jan. 24 agreed to acquire AppDynamics for $3.7 billion in cash and equity awards, taking the application performance management company just days before its expected initial public offering. The deal is expected to close by the end of April. AppDynamics will continue to be led by CEO Wadhwani as a new software business unit under Trollope.

 

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