Before AppDynamics could enter the IPO market, it was acquired by tech giant Cisco, upsetting the plans of many that were waiting for the company to hit the market. AppDynamics is a smart business that gives companies the ability to monitor the performance of their applications, a vital tool in the digital age.
Cisco acquired the company for 3.7 billion dollars, a huge purchase in today’s market when new and better is always a day away. The acquisition comes as a huge surprise because Cisco just made another large purchase in the tech industry. What is surprising is that all of the new purchases that are being made are rapidly changing Cisco’s portfolio and traditional business.
Tech insiders see all the purchases as being linked to the hardware networking that Cisco is best known for. You can no longer just create a product, but need to understand how it works and functions within the industry that it has been created for. This is where acquisitions like AppDynamics make sense because it brings the two worlds of a single product together.
Insiders suggest that AppDynamics was already open to an acquisition, and even setting itself up for a purchase when it began announcing its move to the IPO market. Doing this is a great way to establish a market value for a company or brand and potential companies are more likely to approach the negotiating table.
With AppDynamics in its portfolio, Cisco is better able to provide its customer base with even more services to realize business growth. Apps are necessary to every brand, especially tech brands, because mobile device and tech users expect to connect with companies through customized means as soon as they start interacting with a brand.
There is plenty of competition for app monitoring services, but with this new acquisition by Cisco, AppDynamics has placed itself in an even better position in the market than it already was and now has the attention of a huge client base.