ThousandEyes Acquisition: Key Details, Impact, and What Comes Next

Cisco's acquisition of ThousandEyes marks a significant move in the tech industry, enhancing Cisco's network and cloud intelligence capabilities. This strategic acquisition aims to provide comprehensive visibility into digital delivery, benefiting IT teams by improving network performance and reliability. The integration of ThousandEyes' technology into Cisco's portfolio underscores the growing importance of robust network monitoring in today's digital landscape.

What Is ThousandEyes?

Founded in 2010, ThousandEyes specializes in digital experience assurance, offering a suite of products including End User Monitoring, Internet Insights™, WAN Insights, Cloud Insights, and Traffic Insights. The company differentiates itself with AI-powered issue detection, remediation, and optimization, providing end-to-end visibility into digital experience delivery. Unique features like a real-time Internet Outages Map and tailored customer-centric solutions have earned it trust from industry leaders and innovators.

Who Acquired ThousandEyes?

Cisco is a leading provider of software, network, and cybersecurity solutions, playing a pivotal role in empowering technology and innovation across various sectors. Key products include Cisco Wireless, Cisco Nexus Hyperfabric, and Webex AI solutions. Recognized as a leader in enterprise firewall solutions, Cisco has a significant influence in the technology sector, bolstered by 40 years of innovation and leadership. Its initiatives like the Cisco 360 Partner Program and AI Readiness Index further solidify its market position.

When Was ThousandEyes Acquired?

Cisco completed its acquisition of ThousandEyes on August 7, 2020. This acquisition occurred during a period marked by the COVID-19 pandemic, which significantly increased the reliance on internet and cloud services for remote work and digital commerce. The timing was strategic, as the demand for robust network monitoring and performance optimization tools surged, making ThousandEyes' capabilities highly valuable for enhancing Cisco's portfolio in network and application performance.

Why Was ThousandEyes Acquired?

• Market Expansion: The acquisition of ThousandEyes allows Cisco to enhance its market presence in network intelligence and cloud services. By integrating ThousandEyes' capabilities, Cisco can offer better visibility across enterprise networks, the internet, and the cloud, thus broadening its service offerings and market reach.
• Technology Integration: Cisco plans to incorporate ThousandEyes' technology into its core Enterprise Networking, Cloud, and AppDynamics portfolios. This integration will provide customers with an end-to-end view into the digital delivery of applications and services over the internet, allowing them to pinpoint deficiencies and improve performance.
• Competitive Advantage: The acquisition strengthens Cisco's competitive position by offering advanced internet intelligence at a scale and accuracy previously unseen. This is particularly crucial in a time when remote work and online services have surged. ThousandEyes' technology allows Cisco to offer superior network performance monitoring and troubleshooting, enhancing customer satisfaction and differentiating Cisco from its competitors.

Acquisition Terms

• Acquisition Price: The acquisition price is reported to be around $1 billion.
• Payment Method: The payment method was not publicly disclosed.
• Key Conditions or Agreements:
  • Integration of Capabilities: Cisco will incorporate ThousandEyes' capabilities across its core networking, cloud, security, and application portfolios.
  • Customer and Partner Continuity: Existing customers and partners of both Cisco and ThousandEyes should continue to contact their respective sales representatives for any product or service-related queries.
  • Support Process: ThousandEyes customers should continue to use the existing support process for their products, and Cisco will notify them in advance of any changes. Cisco customers should continue to use the Cisco Technical Assistance Center (TAC) for support.
  • Strategic Importance: The acquisition aims to provide customers with a complete, end-to-end view into the digital delivery of applications and services over the internet, enhancing network and application performance across enterprise and cloud networks.
  • Previous Relationship: Cisco has been a customer of ThousandEyes since November 2013.
  • Company Culture: ThousandEyes will continue to operate with the same culture and commitment to innovation and customer support, remaining agnostic to underlying implementations.

Impact on ThousandEyes

The acquisition of ThousandEyes by Cisco has led to significant changes in operations and management. ThousandEyes' capabilities are now integrated into Cisco's core networking, cloud, security, and application portfolios, enhancing visibility and performance across enterprise and cloud networks. Despite these changes, ThousandEyes continues to operate with its original culture and commitment to innovation. The co-founders, including Mohit Lad, view the acquisition as an opportunity for accelerated growth rather than an exit, ensuring that the core team remains intact and focused on their mission.

In terms of product offerings, the integration has expanded Cisco's ability to provide comprehensive internet and cloud intelligence. ThousandEyes' platform now enables organizations to visualize any network, surface actionable insights, and collaborate with service providers more effectively. This has been well-received by customers, who benefit from improved network and application performance. Employees have expressed excitement about the enhanced capabilities and faster innovation resulting from the combined resources of Cisco and ThousandEyes. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly, ensuring a smooth and successful transition.