SAN JOSE, Calif. - Cisco Systems Inc. (NASDAQ:CSCO) has announced the introduction of new artificial intelligence capabilities within its AppDynamics On-Premises solution, aimed at automating anomaly detection and expediting root cause analysis to bolster the security of business-critical applications.
The new virtual appliance is designed to enhance IT operations with advanced AI-powered tools for monitoring application performance, security, and SAP landscapes.
The company's latest offering addresses the needs of organizations that prefer self-hosted observability solutions due to data residency regulations or the need to retain full control over their data and operations.
These solutions are particularly relevant for sectors such as public, finance, manufacturing, healthcare, and retail, where end-to-end monitoring of critical systems is essential for delivering superior digital experiences.
Cisco has also introduced AppDynamics Flex (NASDAQ:FLEX), a flexible licensing model that allows customers to transition between self-hosted and SaaS observability solutions as their business requirements evolve. This initiative is part of Cisco's broader strategy to support digital transformation and operational efficiency.
The new AI-powered features include improved anomaly detection, leveraging dynamic baselines against historical data to reduce the mean time to identify application performance issues.
Additionally, automated transaction diagnostics facilitate quicker resolution of performance issues. Cisco Secure Application helps identify and prioritize application security vulnerabilities, while Runtime Application Self-Protection (RASP) defends against application exploits.
For SAP environments, Cisco's solution aims to ensure service availability and align performance with business outcomes, enhanced by AI-powered intelligence for the Java stack. This is intended to bolster resilience within SAP landscapes and mitigate security risks.
Customers also have the option to manage their observability deployments in cloud environments like AWS or Microsoft (NASDAQ:MSFT) Azure, using the Amazon (NASDAQ:AMZN) Machine Instance (AMI) or Virtual Hard Disk (VHD) images of the virtual appliance.
The new virtual appliance for Cisco AppDynamics On-Premises is slated for general availability in May 2024, with the Automated Transaction Diagnostics feature and AMI and VHD packages for cloud-based deployments expected in the third quarter of the same year.
This announcement is based on a press release statement from Cisco Systems, Inc. and aims to provide a concise overview of the new capabilities being offered to organizations that depend on self-hosted observability solutions.
InvestingPro Insights
In light of Cisco Systems Inc.'s (NASDAQ:CSCO) recent announcement to enhance its AppDynamics On-Premises with AI capabilities, it's worth noting some key financial metrics and insights from InvestingPro that may interest investors. Cisco holds a strong financial position with a market capitalization of $193.15 billion and maintains a healthy P/E ratio of 14.43, suggesting investor confidence in its earnings potential. This is further supported by the company's adjusted P/E ratio for the last twelve months as of Q2 2024, which stands at 13.7.
One of the InvestingPro Tips worth mentioning is Cisco's commendable track record of raising its dividend for 13 consecutive years, highlighting its commitment to shareholder returns. Additionally, the company's dividend yield as of the latest data stands at 3.38%, which is attractive for income-seeking investors. This is a testament to Cisco's ability to generate and sustain cash flows, which also allows it to comfortably cover interest payments.
Despite some analysts revising their earnings downwards for the upcoming period, another InvestingPro Tip points out that Cisco is trading at a low P/E ratio relative to near-term earnings growth, indicating potential undervaluation. Moreover, the company is recognized as a prominent player in the Communications Equipment industry, which aligns with its strategic initiatives to support digital transformation and operational efficiency through advanced technology solutions like AI-powered tools for application performance monitoring.
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