Cisco to Buy AppDynamics for $3.7 Billion

Cisco acquired AppDynamics just before its planned IPO, recognizing its potential in the software sector. This move aligns with Cisco's strategy to transition from a hardware-focused company to a software and security provider. Cisco has shown growth in areas beyond network equipment, unlike other hardware vendors. The acquisition is expected to enhance Cisco's offerings and leverage its salesforce to maximize value.

What was the main reason Cisco acquired the company before its IPO?

• To expand its hardware division

• To prevent it from going public

• To eliminate competition

• To enhance its software offerings

Which sector is highlighted as particularly attractive in the first section?

• Network hardware

• Software as a service

• Cybersecurity

• Cloud computing

How has Cisco managed to show growth compared to other hardware vendors?

• By acquiring smaller hardware companies

• By reducing its workforce

• By expanding into software and security

• By focusing solely on network equipment

What does Cisco's CEO claim about the acquired company's growth rate?

• It is slower than its competitors

• It matches the industry average

• It is declining

• It is faster than any publicly traded software company

What potential benefit does Cisco see in integrating the acquired company with its sales force?

• Increasing immediate business value

• Reducing operational costs

• Expanding into new markets

• Improving customer service