Cisco snaps up machine learning outfit Perspica

The deal builds upon Cisco's purchase of AppDynamics earlier this year.

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Cisco has revealed plans to acquire San Jose startup Perspica to bolster the firm's previous purchase of AppDynamics in the data analytics arena.

On Thursday, Cisco said in a blog post that Perspica is "the first acquisition to support and accelerate the AppDynamics vision."

Financial details were not disclosed.

The network equipment maker snapped up AppDynamics in January this year in a deal valued at $3.7 billion.

AppDynamics is the developer of an enterprise platform suitable for monitoring application performance and business metrics. Cisco wanted to use the firm's portfolio to provide a suite of monitoring tools -- suitable, too, to blend with Cisco's own networking and data center solutions -- and now the addition of Perspica to the fold will provide an underlay for analyzing vast amounts of data.

Perspica's solutions, data analysis made possible through machine learning algorithms, are expected to work with AppDynamics to "further take advantage of machine learning capabilities to analyze large amounts of application-related data, in real time and with business context."

In other words, Cisco hopes that bringing Perspica and AppDynamics together will give enterprise clients the opportunity to elicit business-critical patterns, trends, and areas of both strength and weaknesses from the data they harvest -- giving customers more value for money, and more contextual results from their data.

"Together, AppDynamics and Perspica can provide enterprises with a way to filter crucial signals from the noise and drive their growth based on the digital streaming insights of their businesses," Cisco says.

The acquisition, Cisco's 200th, will see the Perspica team join Cisco's AppDynamics group, led by Senior Vice President David Wadhwani within the Applications Group.

Cisco expects the deal will close in Q2 2018, following regulatory approval.

In Q4 2017, Cisco reported a net income of $2.4 billion, or 48 cents per share. Non-GAAP earnings equated to 61 cents per share on revenue of $12.1 billion.

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