Cisco Systems, Inc. (NASDAQ:CSCO) announced that it is acquiring Observable Networks, a privately-held software company headquartered in St. Louis that provides cloud-native network forensics security applications delivered as a service.
Financial terms of the deal were not disclosed.
According to the networking giant, the ability to improve security and response capabilities across an entire IT surface is becoming increasingly important as organizations continue their digital transformation.
Cyber crimes are expected to make approximately $6 trillion in damages by 2021, while businesses are likely to invest around $1 trillion over the next five years to improve their digital security, according to a report from Tech Crunch.
Cisco said that Observable’s technology is based on dynamic behavioral modeling of all devices on the network. The company’s solutions allow security analysts to gain real-time situational awareness of all users, devices, and traffic on the network, whether in the data center or the cloud.
Further, Observable’s cloud-native machine learning techniques for device modeling identify insider and external threats faster and more accurately. The design supports cloud environments and enables turn-key activation for customers using Amazon Web Services and Microsoft Azure.
Cisco Systems, Inc. (NASDAQ:CSCO) plans to use Observable’s technology to extend its Stealthwatch solution into the cloud with highly-scalable behavior analytics and comprehensive visibility.
“On the heels of the unveiling of our new intent-based network, this acquisition reaffirms Cisco’s commitment to providing unparalleled security solutions for our customers and partners,” the tech firm said in a statement.
Upon the completion of the deal, Observable’s team will become part of the Security Business Group, which is led by David Ulevitch.
The acquisition is expected to be completed in the first quarter of the fiscal year 2018.
Meanwhile, shares of Cisco Systems, Inc. (NASDAQ:CSCO) were closed down 0.23% on Wednesday. The stock is up over 3% so far this year. During the last 12 months, the value of the company’s share price has increased by around 6.50%.