Cisco buys AppDynamics for $3.7 billion, plots business performance expansion

AppDynamics

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Cisco will acquire AppDynamics, which monitors application performance and business metrics, in a deal valued at $3.7 billion.

The purchase gives Cisco more software heft and broadens its reach in analytics makingthis one of its largest deals of recent years as it searches for growth beyond its core networking business. Cisco’s announcement comes a week after Hewlett Packard Enterprise Co said it would buy cloud startup SimpliVity for $650 million in cash.

The software brings a platform that can analyze application performance across Cisco software and gear. AppDynamics launched software dubbed BusinessIQ in a move to capture more analytics spending from CIOs.

The combination of Cisco, a networking and data center giant, and AppDynamics isn’t that surprising. After all, the acquired software brings a platform that can analyze application performance across Cisco software and gear.

Cisco’s plan is to use the new acquired  to provide a suite of monitoring tools that can combine everything from network performance to application monitoring to the Internet of things. Hence, AppDynamics will become part of Cisco’s Internet of Things and Applications Unit, reporting to Rowan Trollope.

This purchase is expected to close in the fiscal third quarter, said Cisco.

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