Cisco pays big for web performance company ThousandEyes

Andrew Cummings
May 31, 2020

Cisco explains the step by saying that "the combination of Cisco's expertise in network and application performance and ThousandEyes' visibility into the Internet will provide customers with an end-to-end view into the digital delivery of applications and services".

As per reliable sources, the terms of the acquisition between ThousandEyes and Cisco have not been disclosed yet, though it has been rumored to be worth around Dollars 1 billion.

"I'm excited to welcome the ThousandEyes team to Cisco", said Nightingale, SVP and general manager, Cisco enterprise networking and cloud. Customers have asked ThousandEyes about collaboration with application performance monitoring vendors such as AppDynamics, Lad, ThousandEyes co-founder and CEO said. The use of the word partner does not imply a partnership relationship between Cisco and any other company.

"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", Cisco said in the statement. Its chief executive officer and co-founder Mohit Lad said early discussions with Cisco and AppDynamics could be traced back to early a year ago.

Networking giant Cisco Systems Inc. today announced plans to acquire San Francisco-based network intelligence startup ThousandEyes Inc. for an undisclosed amount.

ThousandEyes was founded in 2010 and was valued at $670 million in 2019. "Our customers are also ThousandEyes customers".

Zeus Kerravala, principal analyst at ZK Research, told SiliconANGLE that this is an "outstanding acquisition" for Cisco.

"With ThousandEyes, AppDynamics and Cisco SD-WAN technology, we will have the ability to improve the performance, reliability and scalability of all the applications on which we depend so much", said Cisco.

Traditional monitoring vendors monitored internal networks, were point-to-point, or worked primarily with Cisco gear.

With ThousandEyes, Cisco will add more reoccurring software and service revenues to its bottom line as it transitions away from relying on just the sale of hardware.

As part of Cisco Networking Services business unit, Mohit Lad -ThousandEyes CEO and co-founder - will take on the role of GM and Co-Founder of ThousandEyes, while Ricardo Oliveira, CTO will continue to drive product vision and innovation strategies for ThousandEyes. The deal is expected to be closed before the end of its first fiscal quarter.

Other reports by iNewsToday