Cisco Buys AppDynamics: New Relic CEO Lew Cirne’s Reaction
Cisco Systems’ surprise buyout of AppDynamics is turning heads across Silicon Valley. Among those taking note: Lew Cirne, CEO of New Relic — which competes aggressively against AppDynamics in the APM (applications performance monitoring) market.
In some ways, Cirne is the grandfather (albeit a young one) of modern APM. He previously sold Wyle Technology to CA Technologies in 2006. By 2008, Cirne launched New Relic. Similarly, Jyoti Bansal, a former lead software architect at Wily Technologies, launched AppDynamics in 2008.
Fast forward to present day, and the AppDynamics-New Relic competition continues to intensify. So how is Cirne feeling about Cisco’s surprise $3.7 buyout of AppDynamics? As you might imagine, Cirne is talking up the deal metrics — along with New Relic’s own momentum.
Lew Cirne on the Cisco-AppDynamics Deal
“This acquisition [Cisco’s buyout of AppDynamics] provides tremendous validation of the market opportunity in front of us,” Cirne says. “As enterprises look to take advantage of monitoring to drive their digital businesses, they will have a clear choice between on-prem software from a legacy hardware company, or New Relic’s market-leading 100% Pure SaaS platform. Our Digital Intelligence Platform helps companies of all sizes manage their digital transformation and lead their businesses to the future.”
New Relic is set to announce quarterly results on February 7. In the meantime, the company points to stats from its previous quarterly report. For instance, New Relic has 15,000 paying customers — 1,500 of which are large enterprises and 40 percent of the Fortune 500.