{"id":3083,"date":"2017-01-25T17:44:45","date_gmt":"2017-01-25T17:44:45","guid":{"rendered":"https:\/\/www.rsoftsolution.com\/blog\/cisco-appdynamics-3-7-billion-deal-all-about-the-data.html"},"modified":"2017-01-25T17:44:45","modified_gmt":"2017-01-25T17:44:45","slug":"cisco-appdynamics-3-7-billion-deal-all-about-the-data","status":"publish","type":"post","link":"https:\/\/www.rbsitsoftwaresolution.in\/blog\/cisco-appdynamics-3-7-billion-deal-all-about-the-data.html","title":{"rendered":"Cisco-AppDynamics $3.7 billion deal all about the data"},"content":{"rendered":"


\n<\/p>\n

When Cisco bought AppDynamics last night for $3.7 billion<\/a>, it was initially a bit of a shocker, partly because of the timing, just days before the startup was scheduled to IPO<\/a>. While the acquisition was clearly part of a longer term strategy by Cisco to shift focus from its hardware business to one based more on cloud software, at its core, the deal was a pure data play.<\/p>\n

Data has taken center stage in today\u2019s enterprise. It\u2019s become clich\u00e9 to say that \u2018data is the new oil,\u2019 but like all clich\u00e9s, it\u2019s developed because there is a ring of truth to it. As companies shift to artificial intelligence and machine learning, these are technologies that live and die by copious amounts of quality data.<\/p>\n

Why did Microsoft pay $26 billion for LinkedIn<\/a>? Why was Salesforce willing to go the mat for a chance to buy Twitter<\/a> last year,\u00a0before it fell through<\/a>? It\u2019s all about the data \u2014 and Cisco spent $3.7 billion of its treasure for AppDynamics yesterday for the same reason.<\/p>\n

What AppDynamics gives Cisco is 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\u00a0for 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\u00a0user\u00a0is 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 \u2014 and could have great value when combined with other network information.<\/p>\n

\"AppDynamics<\/p>\n

AppDynamics Unified Monitoring Dashboard. Photo: AppDynamics<\/a><\/p>\n

In a blog post announcing the deal<\/a>, Cisco\u2019s VP of corporate business development, Rob Salvagno cited the AppDynamics data as a big reason for the purchase. \u201cAs 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\u2019s largest enterprises translate this data into business insights and empowers them to drive value for their customers in today\u2019s digital world,\u201d Salvagno wrote.<\/p>\n

Ray Wang, founder and principal analyst at Constellation Research, says that it was critical for Cisco to find an MA candidate that could handle the future of apps in-network, but he says this deal is about\u00a0more than pure applications performance management.<\/p>\n

\u201cThe long term play is when you add this type of software onto the network, you gain network intelligence and more importantly a critical piece for IOT, as well as building a long-term neural network and machine learning story,\u201d he said.<\/p>\n

The Jasper Technologies purchase gave them that IoT piece. AppDynamics gives\u00a0them a view of the applications running on top of that, and while all of that is useful in itself for the short term, Wang believes that this will ultimately be part of a more automated approach in the future, driven by the growing amounts of data and the complexity inherent in managing all of that.<\/p>\n

\u201cCompanies ultimately don\u2019t want to be monitoring apps and the network in a manual fashion, but to predict, prevent and deliver situational awareness,\u201d he said.<\/p>\n

If he\u2019s right, you can look for more MA from Cisco moving forward to acquire the artificial intelligence underpinnings it\u2019s currently lacking. \u201cThe acquisition gives Cisco a place holder into this market and a better software story,\u201d Wang said, but it\u2019s only a foundational piece, not the entire solution.<\/p>\n

With Jasper and AppDynamics, Cisco has plenty of data. Now it needs to fill in some of the other pieces, and begin to put that data to work in a more automated way. While it\u2019s possible to do that now to some extent, the real power could come if\u00a0they add the missing artificial intelligence technologies.<\/p>\n

<\/p>\n

Featured Image: Justin Sullivan<\/a>\/Getty Images<\/small><\/p>\n

Article source: http:\/\/feedproxy.google.com\/~r\/techcrunchIt\/~3\/2bRvh0ysW_A\/<\/p>","protected":false},"excerpt":{"rendered":"

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