Cisco Acquires Splunk, In a Move To Boost AI-Led Security
“Cybersecurity’s Future Turns on AI” Say Cisco, Splunk Chiefs
Overt Operator
September 22, 2023
Cisco’s CEO Chuck Robbins has expressed that a strong reliance on artificial intelligence is key for the future of cybersecurity, The Wall Street Journal reported.
AI is reportedly core to a new deal struck between Cisco and Splunk for “$28 billion”. Cisco is set to buy Splunk in its “largest acquisition” on record. The deal was overseen by the small-staff financial firm Tidal, which was the "sole adviser" to the company during the acquisition.
The acquisition’s central focus was investment into the “AI boom” a market that Cisco wishes to capitalize on by obtaining Splunk, a firm that specializes in enterprise data and combing through massive data loads to yield threat detection.
Cisco released a statement on its purchase of Splunk on September 21, in which Cisco expressed that the merger would make organizations “more secure” and “resilient” in an “AI-powered world.”
For Cisco, the acquisition will reportedly help the company transition away from its reliance on hardware and move it toward artificial intelligence powered systems.
“We’re excited to bring Cisco and Splunk together. Our combined capabilities will drive the next generation of AI-enabled security and observability,” said Chuck Robbins, Cisco’s CEO, as he was quoted in the September 21 Cisco press release.
In conversation with The Wall Street Journal, Splunk CEO Gary Steele expressed excitement about joining the Cisco team and, as part of the merger, gaining access to new systems.
Response to the acquisition rippled through the IT industry, Tech Target’s blog noted.
Tech Target had noted that the acquisition had been long-rumored, but, when it came to pass, IT professionals noted that the two companies,in the view of polled professionals, were not a completely “perfect fit.” The polled professionals felt that Cisco did not have a "good track record" of assimilating software into their portfolio.