Why Cisco (CSCO) Is Buying Epsagon For A Reported $500 Million

By Amit Chowdhry ● Aug 14, 2021
  • Cisco (NASDAQ: CSCO) recently announced it is buying Epsagon for a reported $500 million. These are the details.

Cisco (NASDAQ: CSCO) recently announced it is buying Epsagon LTD., a US-based modern observability vendor with solid expertise in distributed tracing solutions for modern application environments and technologies, including containers and serverless environments.  And applications are the primary way users interact with products and services today. The terms of the deal were undisclosed, but sources with Globes cited $500 million as the amount.

Users are demanding seamless digital experiences and as a result, businesses and organizations are accelerating their digital transformation. As technology landscapes increase in complexity, it becomes even more challenging for IT teams to ensure the performance, optimization, and security of all of their organizations’ technology components. Plus traditional domain-centric monitoring tools were not built for this level of complexity.

Fortunately, Full-Stack Observability supports seamless digital experiences for modern app architectures and IT teams by providing Observability across the full stack of app, infrastructure, network, and security with real-time insights correlated across domains, and with business context, powered by Artificial Intelligence / Machine Learning (AI/ML). And Cisco’s approach to delivering Full-Stack Observability currently starts with core SaaS solutions including AppDynamics, ThousandEyes, and Intersight.

Cisco said that Epsagon will complement its work on full-stack observability for cloud-native environments, across multiple telemetry types including metrics, events, logs and traces with support for open standards. And these demonstrated abilities will accelerate Cisco’s roadmap of capabilities for Full-Stack Observability.

KEY QUOTE:

“Epsagon’s technology and talent align well with Cisco’s vision to enable enterprises to deliver unmatched application experiences through industry-leading solutions with deep business context. By contextualizing and correlating visibility and insights across the full stack, teams can improve collaboration to better understand their systems, solve issues quickly, optimize and secure application experiences and delight their customers.”

— Liz Centoni, Senior Vice President and General Manager of Computing Systems Product Group at Cisco