In this episode we talk with Todd Persen on the topic of monitoring cloud-native applications with Pivotal Cloud Foundry Metric. We discuss the changing nature of monitoring in cloud-native platforms, how developers can now turn black-boxes into white-boxes, why time-series dominates the thought-technology in this space now, and the benefits of open source taking over most innovation in systems management. Richard is out this week, so Andrew Shafer returns to fill in as co-host.
Based on the S-1 filings from the business, a $3.7B price implies a 17.3x enterprise value/trailing twelve month revenue multiple, which is 41% higher than the next nearest acquisition, Salesforce/Demandware. There’s no comparable pricing event in the M&A market in the last 10 years.
The Borg’s plucked the company mere days before it was expected to float on the stock market, an event expected to raise around US$1.4bn for a portion of the company.
While AppDynamics could point to over 2,000 customers and nine-figure revenues, it also had rather a lot of red ink to deal with. That’s Cisco’s problem now, as it will make AppDynamics a software business unit in its internet of things and applications business.