Cisco To Buy App Monitoring Specialist Epsagon For A Reported $500M

The tech giant is spending a reported $500 million on application monitoring specialist Epsagon to boost its existing observability platform, which today includes AppDynamics and ThousandEyes.

Cisco Systems is buying Israeli application monitoring company Epsagon to add to its growing observability platform, the tech giant said Friday.

Privately held Epsagon’s technology will be added to Cisco’s full-stack observability platform that today consists of the company’s other acquired assets from AppDynamics and ThousandEyes, as well as its own Intersight management platform.

The two companies did not reveal financial terms of the upcoming transaction, but Cisco is reportedly spending $500 million to buy the observability firm, according to a report from Tel Aviv-based news site Globes.

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Epsagon specializes in distributed tracing solutions for modern applications and technologies, including containers and serverless environments. The company‘s technology will join Cisco’s other solutions to provide deeper observability across the entire application lifecycle, network infrastructure and security. This will give IT teams more visibility across the stack so they can take quick actions, according to the two companies.

The Epsagon team will join Cisco‘s Strategy, Incubation and Applications group, led by Liz Centoni, once the deal closes.

Increasingly complex IT environments have businesses scrambling to figure out how to monitor the performance, optimization and security of every application and digital experience for their end users. Traditional domain-centric monitoring tools address only some of these needs and for a single area at a time. Cisco‘s approach, however, gives entire teams access to shared context so they can optimize applications for cost, security and performance to maximize digital business revenue, according to Centoni, Cisco’s chief strategy officer and general manager, Applications.

“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,” Centoni said in a blog post on the proposed deal.