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:

The correct choice identifies a Host Intrusion Detection System (HIDS), which is specifically designed to monitor the internals of a computing system. HIDS examines system activities, configurations, and files to detect potential unauthorized actions or vulnerabilities within an individual host. This capability allows it to analyze changes to system files and the behavior of applications, providing a comprehensive security posture at the host level.

While HIDS focuses on the internal monitoring of individual systems, it also has the capacity to analyze network packets and interactions, especially on the host it is installed on, making it suitable for detecting intrusions that might arise from malicious activities within that system. Its ability to provide detailed insights into the events occurring on a system allows administrators to monitor compliance, security policies, and any anomalies that could indicate a threat.

In contrast, options like network intrusion detection systems (NIDS) focus primarily on monitoring network traffic rather than the internals of a single host, which makes them less comprehensive regarding internal system analysis. Understanding each system's distinct functions and purposes is crucial in selecting the right security measures for protecting varied aspects of IT environments.