In one of the largest tech acquisitions of the year, Cisco announced on September 21, 2023 that it would be acquiring Splunk for $28 billion in cash. The deal is expected to close in the third quarter of 2024, subject to regulatory approval.
Splunk is a software company that specializes in data observability and security. Its platform helps businesses to collect, monitor, and analyze data from a variety of sources, including applications, servers, and networks. This data can be used to identify and troubleshoot problems, improve performance, and secure systems from cyberattacks.
Cisco is a network equipment and software company that has been expanding its cybersecurity business in recent years. The acquisition of Splunk will give Cisco a stronger position in the observability and security markets.
The deal is expected to benefit both companies. Cisco will gain access to Splunk’s leading observability platform and its expertise in security analytics. Splunk will gain access to Cisco’s global sales and marketing channels, as well as its customer base of large enterprises.
What does the deal mean for customers?
Customers of both companies can expect to benefit from the deal in a number of ways. For example, Cisco and Splunk customers will be able to integrate their security and observability solutions more easily. This will help them to better detect and respond to security threats, and to improve the performance of their applications and systems.
In addition, Cisco and Splunk customers will have access to a wider range of products and services. For example, Cisco customers will be able to purchase Splunk’s observability platform, and Splunk customers will be able to purchase Cisco’s security solutions.
What does the deal mean for the industry?
The deal is a sign of the growing convergence between security and observability. As businesses collect more data from a wider range of sources, they need to be able to both secure that data and use it to improve their operations.
The acquisition of Splunk by Cisco is a major move in this direction. It creates a new leader in the security and observability market, with a combined portfolio of products and services that is second to none.
Conclusion
The acquisition of Splunk by Cisco is a major event in the tech industry. It is a sign of the growing convergence between security and observability, and it creates a new leader in this market.
Customers of both companies can expect to benefit from the deal in a number of ways. For example, Cisco and Splunk customers will be able to integrate their security and observability solutions more easily. This will help them to better detect and respond to security threats, and to improve the performance of their applications and systems.
