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How AppDynamics Will Enhance Cisco’s Stance in the IoT Space

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AppDynamics to be a part of Cisco’s IoT segment

Earlier in the series, we discussed Cisco Systems’ (CSCO) recently announced billion-dollar acquisition of AppDynamics. After Cisco’s acquisition of Sourcefire, a security company, for $2.7 billion in 2013, AppDynamics is its largest acquisition. AppDynamics’ acquisition is expected to be completed in April 2017. Post acquisition, AppDynamics will be included and integrated into Cisco’s IoT (Internet of Things) and Applications Unit. CEO David Wadhwani will continue to lead AppDynamics.

Cisco’s last large acquisition, Jasper, for which it paid $1.4 billion, is also a part of that unit. Jasper Technologies provides cloud-based IoT (Internet of Things) service platforms and has helped a number of companies to introduce their products to the market.

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IoT set to revolutionize digital transformation

According to the Cisco Global Cloud Index, IoT is expected to drive data creation by any device to 600 ZB (zettabytes) per year by 2020 compared with 145 ZB per year in 2015. As the above chart shows, M2M (machine-to-machine) connections are expected to amount to 46% of total connected devices.

Cisco’s latest report on factors driving global IP traffic estimates shows that among various other categories of connected devices, IoT will grow the fastest. IoT and database analytics applications are expected to be the fastest growing in the enterprise segment at a CAGR (compounded annual growth rate) of 22% between 2015 and 2020.

It’s this growth in IoT that has drawn Cisco, IBM (IBM), Microsoft (MSFT), and Salesforce (CRM) as we’ll see later in the series.

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