Cisco (NASDAQ: CSCO) on may 28,2020 announced its intention to acquire ThousandEyes, Inc. ThousandEyes is a privately-held company, with its headquarters in San Francisco, CA. Its Internet and Cloud intelligence platform delivers deep visibility and insights into the digital delivery of applications and services over the Internet.
Cisco (NASDAQ: CSCO) is the worldwide technology leader that has been making the Internet work since 1984.
In the last few years, the industry has seen a rapid increase in the adoption of Cloud, the use of SaaS applications, and a reliance on the Internet and networks outside of enterprise control.
By bringing together Cisco’s strength in network and application performance with ThousandEyes’ visibility into the Internet, customers will now have an end-to-end view into the digital delivery of applications and services over the Internet, allowing them to pinpoint deficiencies and improve network and application performance across enterprise and cloud networks. This acquisition will also empower enterprises to accelerate their digital transformation, no matter where they are in their journey, by delivering comprehensive visibility into applications and services delivered to customers and employees.
“I’m excited to welcome the ThousandEyes team to Cisco,” said Todd Nightingale, senior vice president and general manager, Cisco Enterprise Networking and Cloud. “The combination of Cisco and ThousandEyes will enable deeper and broader visibility to pinpoint deficiencies and improve the network and application performance across all networks. This will give customers end-to-end visibility when accessing cloud applications, and Internet Intelligence will improve networking reliability and the overall application experience.”
Cisco will incorporate ThousandEyes’ capabilities across Cisco’s core Enterprise Networking and Cloud, and AppDynamics portfolios to boost visibility across the enterprise, internet and the cloud. The acquisition is expected to close before the end of the first-quarter results. ThousandEyes will join Cisco’s newly-formed Networking Services business unit, reporting to Todd Nightingale. The deal is said to close at $1 billion.
As part of the Networking Services business unit, ThousandEyes CEO and co-founder Mohit Lad will take on the role of General Manager of ThousandEyes, and Co-Founder, CTO Ricardo Oliveira will continue to drive ThousandEyes product vision and innovation strategy.
Lad, in his blog post, wrote, “From the beginning, our goal has been to empower customers to see the Internet and Cloud-like it’s their own environment, and it has always been important to us that the people behind the product are just as valuable to our customers as the product itself. We want our customers to feel like ThousandEyes employees are an extension of their team, and are obsessed with making them successful. That culture of our commitment to innovate and continue to support every customer with the same fervor will stay the same as it has from day one.”
“We are incredibly excited to make our intelligence even more actionable with tie-ins to Cisco products on the network and application side. ThousandEyes will continue to be agnostic to underlying implementations so our customers can benefit from it no matter what vendors you use. And yes, we will continue to make those awesome T-shirts—that was the first term we negotiated” he added further.
Cisco had previously bought AppDynamics in 2017 for $3.7 billion. Cisco owns a vast majority of the market, and it wants to keep moving into software services as a hedge against this shifting market.
Cisco’s stock rose after the company released this news.