Cisco recently acquired AppDynamics for $3.7 billion, just before AppDynamics was set to take its company public. This signals a trend that is likely to continue, with large tech companies acquiring emerging tech unicorns before they go public. This can mean a lot of different things to different people. If you’re a Cisco stockholder, you’re very happy. If you’re planning to invest in AppDynamics once it was public, you’re mad. If you’re a consumer, you want to know what it means for you.
What this means for consumers of Cisco, is that they will now offer software with their hardware. Cisco has been mostly a hardware tech company, and one of the biggest and best. Now the will be able to create the software to compliment their hardware. Cisco primarily wrote the big check for AppDynamics software business. This will change the sales and investment structure for Cisco, and we have to see how it affects consumers.
Cisco hope that AppDynamics software will enable them to be a software based company. This means that there will be software to continue to improve the front end business operations with the back end. Cisco hope to have software that can tell you how thing like websites and cash registers are doing, and use the back end network to improve performance and analytics.
As for us, we see this as an interesting opportunity. We have been a Cisco partner for many years, and look forward to offering new solutions for our clients. We will keep you updated on what this acquisition will mean going forward.