In the fast-paced world of tech acquisitions, it's easy to overlook the magnitude of a company's strategic moves. Cisco, a giant in the networking and technology industry, has been quietly building a portfolio of acquisitions that collectively pack a powerful punch in cloud, AI, security, network, and observability. While some of these acquisitions may have flown under the radar when considered individually, the recent purchase of Splunk is undeniably a strategically significant move with extensive implications. In essence, they've acquired a company that commands a substantial 25% share of the $5 billion SIEM market.
Full List of Cisco acquisitions here.
A Convergence of Capabilities
Splunk, known for its robust security, data analytics, and observability platform, offers more than meets the eye. What makes this acquisition truly significant is its potential to bring together Cisco's various acquisitions under one cohesive roof.
Until now, Cisco had acquired a series of product silos in the network, application performance and security space that often lacked the integration customers expected. This disjointed approach was evident in the case of AppDynamics, where despite many years passing since the acquisition, the product struggled to keep pace with industry leaders or traceability through the Cisco stack.
Adding an intriguing dimension to Cisco's strategy is Thousandeyes, a network traceability and synthetic monitoring tool. Despite its integration into Cisco's suite of offerings, occasionally pre-installed on new equipment, the tool itself has seen limited innovation. Nevertheless, the true potential emerges with Splunk's capability to harmonize these network traces, along with associated flows, packets, Meraki telemetry, culminating in a formidable network monitoring solution if that's an intended use case.
Yet, there's a compelling twist to the narrative. For those already entrenched in the Cisco ecosystem and utilizing Splunk, this acquisition simplifies their vendor landscape. Managing one less vendor becomes a potential bonus for many, streamlining their operations and reducing complexity.
The Splunk Customer Dilemma
On the flip side, Splunk customers who do not use Cisco networking equipment may find themselves contemplating alternatives. The real question is whether Cisco can swiftly integrate the capabilities of Splunk, AppDynamics, and Thousandeyes (and others) into a unified solution. If they succeed, Cisco could emerge as a formidable contender in the broader observability market.
The Cisco Advantage
Cisco's long-standing reputation, extensive customer base, and deep pockets provide them with a unique advantage. If they can seamlessly meld these acquisitions into a unified offering, they may disrupt the observability landscape.
However, the challenge lies in execution. Integration, innovation, and customer satisfaction will be key factors determining the success of this strategic move.
In conclusion, Cisco's acquisition of Splunk marks a pivotal moment in the technology industry. It's not just about adding another tool to the arsenal; it's about the potential to create a holistic solution that addresses the evolving needs of modern enterprises.
The impact of this move will ripple through the observability market and beyond, reshaping the way organizations monitor, secure, and manage their digital ecosystems. The journey ahead is promising, but as with any transformational endeavour, the devil will be in the details.
Learn More About Our Data Migration Services While this development brings positive changes for many customers, it's important to recognize that a small group may have reservations about working with Cisco. For long-standing Splunk customers considering alternatives, embarking on the journey of migration can be a daunting task. Fortunately, companies specializing in data migration services, such as Visibility Platforms, are well-equipped to provide essential assistance and guidance throughout this transition.