Why Cisco Bought ThousandEyes

Simply stated, monthly recurring revenue or MRR – that is the reason Cisco purchased ThousandEyes. That, and the move to software. The good news for Cisco customers is the networking leader has a strong security play, SD-WAN, UC, collaboration, and now remote network monitoring.

ThousandEyes can do the following among other things:

  • BGP routing tests
  • End-to-end and path tests
  • Page load and HTTP tests
  • Synthetic transaction tests
  • DNS server and trace tests
  • VoIP RTP and SIP tests

Solutions include:

  1. Alibaba Cloud Monitoring
  2. AWS Cloud Monitoring
  3. Azure Monitoring
  4. CDN Performance
  5. DDoS Mitigation Service
  6. Google Cloud Monitoring
  7. SD-WAN Performance
  8. ISP Monitoring
  9. LAN Monitoring
  10. Multi-Cloud Monitoring

Customers include Slack, Comcast, eBay, Microsoft and others. The deal is valued at $1 billion and this follows on nicely to the 2017 acquisition of AppDynamics for $3.7 billion, the $2.35 billion purchase of Duo Security in 2018 in the authentication space, and the $1.9 billion acquisition of Broadsoft in 2017 for UCaaS solutions provided to carriers and MSPs.

Open-source software and white-box solutions are painful to companies like Cisco that still make a lot of money selling proprietary boxes. We applaud Cisco CEO Chuck Robbins on his strategy to diversify into services and MRR. It is a smart direction to be headed in.

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