Getty ImagesMUMBAI: Cisco announced on Thursday announced that it would be acquiring ThousandEyes, a San Francisco-based software company founded in 2010 by Mohit Lad and Ricardo Oliveira.
The 400-member startup provides solutions to monitor networks for outages. Cisco did not comment on the acquisition value, but media reports peg the deal at $1 billion.
Cisco has been growing its software services portfolio in a pivot away from its traditional hardware business. It had earlier acquired application performance and monitoring company, AppDynamics, in 2017 for $.3.7 billion.
Todd Nightingale, senior VP and general manager, Cisco Enterprise Networking and Cloud said “The combination of Cisco and ThousandEyes will enable deeper and broader visibility to pin-point 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.”
The acquisition is expected to close before the end of Cisco’s Q1 FY 21 and based on the terms of the deal ThousandEyes will join Cisco's Networking Services business unit.
In a blog post Lad said that this was not an exit for ThousandEyes, “Our strategy has been to keep growing and to make decisions that were healthy for the long term. While some folks may argue that this is an exit, it’s not in my mind. We decided to become part of Cisco because we saw the potential to do much more, much faster, and truly create a legacy for ThousandEyes.”
As part of the Networking Services business unit, Lad will take on the role of GM of ThousandEyes, and Co-Founder Oliveira will continue to drive ThousandEyes product vision and innovation strategy, according to Cisco.
The 400-member startup provides solutions to monitor networks for outages. Cisco did not comment on the acquisition value, but media reports peg the deal at $1 billion.
Cisco has been growing its software services portfolio in a pivot away from its traditional hardware business. It had earlier acquired application performance and monitoring company, AppDynamics, in 2017 for $.3.7 billion.
Todd Nightingale, senior VP and general manager, Cisco Enterprise Networking and Cloud said “The combination of Cisco and ThousandEyes will enable deeper and broader visibility to pin-point 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.”
The acquisition is expected to close before the end of Cisco’s Q1 FY 21 and based on the terms of the deal ThousandEyes will join Cisco's Networking Services business unit.
In a blog post Lad said that this was not an exit for ThousandEyes, “Our strategy has been to keep growing and to make decisions that were healthy for the long term. While some folks may argue that this is an exit, it’s not in my mind. We decided to become part of Cisco because we saw the potential to do much more, much faster, and truly create a legacy for ThousandEyes.”
As part of the Networking Services business unit, Lad will take on the role of GM of ThousandEyes, and Co-Founder Oliveira will continue to drive ThousandEyes product vision and innovation strategy, according to Cisco.
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