Cisco To Acquire Splunk: What's the Buzz About?
- By CDOTrends editors
- September 25, 2023
Organizations face a multifaceted challenge with the rise of generative AI, expanding threat surfaces, and diverse cloud environments. As every byte of data becomes crucial in decision-making, there's an emerging need for enhanced digital resilience and security.
In a landmark announcement from San Jose and San Francisco, tech leaders Cisco and Splunk have revealed their intention to merge, promising to navigate these complexities and usher in the next generation of AI-enabled security and observability. The acquisition is expected to bolster Cisco's mission of securely connecting everything while enriching Splunk's commitment to reinforcing digital resilience across organizations.
Chuck Robbins, chair and chief executive officer of Cisco, commented on the merger, "We're excited to bring Cisco and Splunk together. From threat detection and response to threat prediction and prevention, we will help make organizations of all sizes more secure and resilient."
Echoing the sentiment, Gary Steele, Splunk's chief executive officer, said, "Uniting with Cisco represents the next phase of Splunk's growth journey, accelerating our mission to help organizations worldwide become more resilient while delivering immediate and compelling value to our shareholders."
Cisco's move to acquire Splunk for approximately USD28 billion underscores a shared vision. Both companies believe in the power of data and AI to deliver stellar customer outcomes. This synergy promises to provide unparalleled security analytics from devices to applications to clouds, ensuring organizations remain digitally robust.
Furthermore, their complementary capabilities are set to offer enhanced observability across hybrid and multi-cloud environments, a feature that's increasingly essential for businesses to deliver seamless digital experiences.
Besides the technical synergies, this merger also signifies the coming together of two entities known for their shared values, commitment to innovation, and inclusive cultures. Both companies have a reputation as “Great Places to Work”, and this merger is anticipated to further solidify their standing in the industry, especially among software talent.
For the stakeholders, the acquisition promises to be cash flow positive in the initial fiscal year after the merger, along with other beneficial financial outcomes in the subsequent year.
However, the finalization of this mega-deal awaits regulatory nod and approval from Splunk shareholders, expected by the end of 2024.
“Together, we will form a global security and observability leader that harnesses the power of data and AI to deliver excellent customer outcomes and transform the industry. We’re thrilled to join forces with a long-time and trusted partner that shares our passion for innovation and world-class customer experience, and we expect our community of Splunk employees will benefit from even greater opportunities as we bring together two respected and purpose-driven organizations,” Steele added.
Image credit: iStockphoto/Pakpoom Makpan