A system capable of monitoring and analyzing the internals of a computing system as well as the network packets on its network is known as:

A system capable of monitoring and analyzing the internals of a computing system as well as the network packets on its network is known as a Host Intrusion Detection System (HIDS). This type of system is specifically designed to monitor the integrity of files and the behavior of the host systems it protects. It analyzes logs and records local system activity, which allows it to detect anomalies or intrusions that may occur internally.

HIDS operates by examining the state of the host against known baselines, looking for unauthorized changes, or behavior that deviates from the norm, which makes it effective for identifying potential security threats that can arise from within the system itself. Additionally, it tracks processes and system calls, providing a thorough examination that is vital for detecting and responding to threats that bypass network-level defenses.

In contrast, a Network Intrusion Detection System (NIDS) is focused specifically on monitoring network traffic and packets traversing the network, rather than the internal operations of systems. While both HIDS and NIDS are integral for overall security, the distinction lies in the environment they monitor; thus, HIDS is the correct answer when referring to a system that evaluates both internal host activity and network data.