Cisco acquires software company StotalEyes, which is valued at about $1 billion

According tomedia reports, Cisco will buy ThousandEyes to further expand into the software services industry. People familiar with the matter said the purchase price was about $1bn. ThousandEyes, a San Francisco startup, can tell customers if end users of Internet services are meeting expectations, and they can track services to see how they are delivered and what goes wrong. Cisco said in a statement that it expects the deal to close by the end of the first quarter.

Cisco acquires software company StotalEyes, which is valued at about $1 billion

Cisco’s goal is clear: it wants to strengthen the software services industry, reduce reliance on hardware, and generate more revenue from long-term contracts, which, while expensive, can only generate one-time revenue.

ThousandEyes can complement the business when Cisco acquires App Dynamics in 2017. AppDynamics analyzes monitoring and analysis of the performance of your app.

ThousandEyes is supported by several VC companies, including Sequoia, Sutter Hill Ventures, and Salesforce Ventures. ThousandEyes has raised $110 m, valuing it last year at about $670 million.