Cisco to Acquire Splunk, to Help Make Organizations More Secure and Resilient in an AI-Powered World
September 26, 2023: Cisco is acquiring Splunk, the leading observability and security software provider, for $28 billion in cash. The deal is expected to close in the first half of 2024.
The acquisition is a significant coup for Cisco, as it will give the company a strong foothold in the growing observability and security markets. Splunk’s software is used by over 19,000 customers, including 90% of the Fortune 500.
Cisco CEO Chuck Robbins said that the acquisition will help Cisco to make organizations more secure and resilient in an AI-powered world.
“Splunk is a pioneer in observability and security, and we are excited to bring their team and technology into Cisco,” Robbins said. “Together, we will help our customers accelerate their digital transformation and protect their businesses from the most advanced threats.”
Splunk CEO Gary Steele said the acquisition is an excellent opportunity for Splunk customers and employees.
“We are excited to join Cisco and help them to deliver the most comprehensive security and observability platform in the world,” Steele said in a statement. “Our customers will benefit from Cisco’s global scale and resources, while our employees will have the opportunity to work on some of the industry’s most challenging and important problems.”
Implications of the Acquisition
The acquisition has several implications for businesses, consumers, and investors.
Businesses can expect to benefit from Cisco’s investment in Splunk’s technology. Cisco will likely invest heavily in Splunk’s research and development, which could lead to new and innovative security and observability solutions. Businesses can also expect closer integration between Cisco and Splunk’s products and services.
Consumers can expect to benefit from the acquisition in terms of improved security and performance of online services. Splunk’s technology is used by many of the world’s leading online service providers, so the acquisition could help to make these services more secure and reliable.
Investors can expect benefits from the acquisition in terms of increased revenue and profitability for Cisco. Splunk is a profitable company with a growing customer base so that the acquisition could boost Cisco’s financial performance.
Cisco’s acquisition of Splunk is a significant development in the security and observability markets. The acquisition is likely to benefit businesses, consumers, and investors alike.
What Businesses Can Do
Businesses can prepare for the acquisition by:
- Reviewing their security and observability needs
- Evaluating Cisco and Splunk’s products and services
- Planning to migrate to Cisco and Splunk’s platform in the future
What Consumers Can Do
Consumers can prepare for the acquisition by:
- Choosing online service providers that use Splunk’s technology
- Enabling security and privacy features on their devices and online accounts
- Being aware of the latest security threats and scams
What Investors Can Do
Investors can prepare for the acquisition by:
- Researching Cisco and Splunk’s financial performance
- Assessing the risks and rewards of investing in Cisco
- Consulting with a financial advisor to develop an investment plan