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Cisco has made a major move into the application performance monitoring field with the acquisition of AppDynamics.

The cost of the deal is around £2.97 billion, so what makes AppDynamics worth this eye watering amount of money?

Essentially AppDynamics is an enterprise software company that provides diagnostic software for large IT departments. Many businesses now have a complex assortment of applications, databases, on-premise servers and cloud infrastructure, plus other networking components that form the backbone of their businesses. The complex relationships between all of these tools can cause bottlenecks, slow performance, or even crashes.

Using AppDynamics, IT departments can watch every line of code and understand its impact on user experience and application performance, while providing real-time insight into the digital business. Through AppDynamics, Cisco will now be able to offer intelligence, correlation and insights at every level of the infrastructure through to individual applications.

Cisco emphasised the importance of this all-encompassing view in its press release, saying “Together, Cisco and AppDynamics will deliver visibility across the network, data centre, security and applications and drive digital transformation that improves customer experiences.”

And the power of the AppDynamics software is reflected in its customer base. This includes airlines and banks alongside private and public cloud services from the likes of Amazon, IBM and Google.

There is also a new partnership with Microsoft that will deliver advanced support for the real-time monitoring of digital businesses in Azure cloud environments.

There have been industry accolades for the software, with the company named as a leader in Gartner’s 2016 Magic Quadrant for Application Performance Monitoring Suites.

In its last fiscal period AppDynamics saw year-over-year revenue growth of over 50%. Perhaps the most interesting aspect of this was that approximately 75% of last year’s product revenue was purely subscription-based

The purchase helps to further position Cisco as a leading authority regarding networks, infrastructure, IoT devices and now applications, a point reflected by a spokesperson who claimed: “We acquired AppDynamics because they are a market leader in a category that will be a cornerstone for how enterprises drive their business forward. Together, AppDynamics and Cisco will be the only company that can deliver complete visibility spanning from the infrastructure to application to end user.”

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