Security and observability behind Cisco’s $28bn Splunk deal

Cisco has agreed to acquire Silicon Valley software firm Splunk for $28bn in a deal that it hopes will strengthen its security and observability portfolio.

Both US firms said the move – which is the biggest technology transaction so far this year –  was positioned to prepare IT departments for managing increasing amounts of data on their networks.

Splunk offers cloud monitoring, observability, and incident management products. For Cisco these offer the potential to sit alongside its own observability platform.

Observability solutions are used to improve the performance of distributed IT systems, allowing teams to get the root cause of a multitude of issues.

According to US consulting firm Gartner, Splunk’s roadmap includes AI-directed end-to-end full-stack observability for hybrid environments.

AI was something Chuck Robbins, chair and CEO of Cisco, referred to in the firm’s statement announcing the deal.

“We’re excited to bring Cisco and Splunk together. Our combined capabilities will drive the next generation of AI-enabled security and observability,” he said.

Gary Steele, president, and CEO of Splunk, added that uniting with Cisco would help make organisations more secure and resilient in an AI-powered world.

“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,” he said.

Other companies to have bolstered their observability offerings include Deloitte, who partnered with software vendor Dynatrace to expand its range of cloud management services in May.

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