An announcement by global IT giant Cisco that it intends to purchase Splunk, a pioneer in the cybersecurity and observability space, highlights the industry’s focus on enhancing digital resilience. The acquisition has a worth of almost $28 billion, with a price per share of $157.
Chief Executive Officer (CEO) of Splunk Gary Steele is expected to join Cisco’s Executive Leadership Team after the purchase. Steele will be led by Chuck Robbins, the CEO and chair of Cisco, in this new phase.
The goal of Splunk’s portfolio integration with Cisco is to use the former’s long history of supporting businesses in enhancing their digital resilience. This purchase would align with Cisco’s larger goal of achieving complete and secure digital interconnection. Combining the knowledge of these two IT giants – known for their experiments with observability, security, and artificial intelligence – should strengthen organizations’ defenses against online attacks.
The CEO and chair of Cisco, Chuck Robbins, expressed his excitement about the partnership, saying, “Combining our strengths with Splunk’s will drive the next-generation solutions in this space as we usher in an era dominated by AI-enabled security and observability. We will use a comprehensive strategy that includes threat identification and predictive prevention in order to strengthen companies of all sizes.”
“This collaboration signifies an evolutionary leap for Splunk, propelling our core mission to bolster global organizational resilience,” said Gary Steele, CEO of Splunk, echoing Robbins’ view. “Due to our organizations’ complementary passions for customer-centric solutions, the synergy between them guarantees unmatched creativity.”
The importance of data has increased in the era of ubiquitous digital technology. No matter how big or small, every business relies on data-driven insights to make vital choices, stated Cisco. However, as AI grows, so do attack vectors and cloud infrastructures, which are becoming more complicated. According to Cisco, this has increased operational complexity. Businesses would desperately need sophisticated tools that not only harness the value of data but also protect it to navigate this complex world.
Cisco together with Splunk’s combined strength would enable them to meet this urgent need. Combining Splunk‘s “strong” security architecture with Cisco‘s wide range of products should result in security analytics that are unmatched. This partnership is anticipated to ensure fluid application experiences, which are essential for digital endeavors, while providing a smooth observability spectrum across multi-cloud configurations. With their deep-rooted trust foundations and broad data visibility, both organizations think they are well-positioned to help clients use AI ethically.
The combination of Cisco and Splunk’s capabilities is expected to enable large investments in cutting-edge products, accelerate the innovation cycle, and increase their worldwide reach. Moreover, both companies, which are well regarded for their open cultures and values-based ethos, are hopeful about creating a favorable work environment after the purchase.
It is anticipated that the transaction would close by the third quarter of 2024, representing a major acquisition deal in the history of the IT sector.