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Cisco made headlines when it announced it would acquire Splunk for $28 billion in late 2023, making it the company's largest acquisition in its history.
The move sparked considerable speculation among Cisco watchers as to why the company made such a bold move. The most obvious thought was that it could help Cisco's security business, which is currently undergoing a modernization with its security cloud. It also had the potential to add a new dimension to network business. Other benefits include full-stack observability and using data from Splunk's service groups to improve business outcomes.
Until recently, Cisco and Splunk remained silent on the matter because they legally couldn't say much while the deal was being completed. In March, Cisco completed his acquisition of Splunk, giving the company the freedom to deploy its vision. Cisco recently held a roundtable with Splunk to discuss how the acquisition can help transform the company's business.
Cisco and Splunk: A shared strategic vision
The roundtable was moderated by Liz Centoni, Cisco EVP and Chief Customer Experience Officer, and featured Tom Casey, Splunk Senior Vice President and General Manager of Products and Technology, and Jeetu Patel, Cisco EVP and General Manager of Security and Collaboration. A discussion was held. A panel discussion discussed how the combined companies can leverage their combined strengths in networking, security, observability, and artificial intelligence to provide unparalleled visibility across the digital landscape.
The session began with a discussion of Cisco's motivations for acquiring Splunk. This acquisition was driven by his strategic vision based on three fundamental pillars:
Data as a differentiator
While AI tools and models are widely available, both companies recognize that the real competitive advantage lies in the quality, reliability, and actionable insights that can be gained from data.
Cisco has access to extensive data sets across network, security, and operations. Splunk, on the other hand, has its own high-quality data and analytics capabilities.
Cisco's Centoni emphasized the importance of this in the age of artificial intelligence, saying: “When you think about AI, everyone has access to the same AI tools and models. The differentiating factor is the data.” Cisco and he believe that the combination of Splunk will give Cisco a better infrastructure than other infrastructure providers. You can also get a lot of data.
Integrated security and observability
Cisco and Splunk plan to deliver a more consistent observability solution, giving customers a complete view of their digital infrastructure. This integration reduces the time it takes to troubleshoot issues by analyzing connected data to quickly resolve issues.
Historically, observability and security have been separate fields, but over the past few years, these industries have tended to collide. In my discussions with Patel, he continually talked about how his two disciplines work together and how Cisco has the data to support its vision.
Enhanced digital experience
Cisco and Splunk work together with integrated products to help customers deliver great digital experiences. Specifically, the integration with Cisco's ThousandEyes will provide better insight into network routes and user behavior, enhancing the digital experience for existing Splunk customers.
elite partnership
Cisco continues to build on Splunk's reputation as a leading provider of security solutions to enterprises around the world. Cisco's advanced intelligence tools like Talos will further enhance Splunk's services and make it an even more attractive option for companies looking to strengthen their security configurations.
For example, integrating Cisco's cloud, breach, and user protection technologies with Splunk's security information and event management (SIEM), security orchestration, automation, response (SOAR), and attack analysis solutions is a powerful combination. Masu.
“We take a unique approach to providing an integrated security and observability solution, because we're uniquely positioned to provide an integrated security and observability solution that's easy to use, whether it's bad code being deployed, ransomware attacks, or even beneficial spikes in traffic. Because you need both to address almost any kind of problem,” Casey said. “Cisco allows us to provide unprecedented visibility across our entire digital footprint.”
Enhanced security with AI
The Cisco and Splunk merger is about more than just combining technologies. Bringing AI to the forefront of cybersecurity.
Cisco is deeply invested in artificial intelligence, leveraging it across all functions within the company beyond product development and integrating AI capabilities, models, and tools into its portfolio. One example is the creation of Silicon One, a new type of chip to power AI workloads in both hyperscalers and enterprise networks.
With Splunk, Cisco adds security capabilities using data. Mr. Patel explained: “To be a world-class security company, you have to be a world-class AI company. To do that, you have to be a world-class data company, and Splunk is helping us improve in that regard.” Sho.”
AI in security can play a key role in addressing talent shortages in security. Patel said there are millions of unfilled security jobs in the U.S. each year, and about 90% of companies have more than one open position, highlighting the complexity and demand in the field.
Generative AI and Cybersecurity
Generative AI holds promise in addressing three key areas in security: increasing effectiveness, improving the user experience for both security and IT, and reducing the total cost of ownership of security systems.
For example, integrating generative AI tools like Cisco AI Assistant into a variety of products simplifies the interaction between users and technology. Users can express their security intent in natural language, which is interpreted by an AI assistant to help set policies, manage network configurations, and troubleshoot issues.
“Every product we offer will be under the Cisco AI Assistant banner. It will not only be built into the product, but it will also be something you can use to access system pages and ask questions. Over time, Splunk plans to connect its own datasets to it as well, so this is a very logical extension.”
While AI can be extremely helpful, especially during crises, human judgment is still essential. Therefore, a balanced approach is needed, where AI supports but does not replace human decision-making. Both companies understand the importance of ethical AI that is powered responsibly while maintaining and building customer trust.
Bottom line: Cisco's Splunk acquisition brings AI together
For AI to be truly effective, it must be securely integrated into systems and supported by large amounts of data for training. Cisco is currently working on incorporating his AI into its cybersecurity framework, with significant development expected in the coming months.
The Splunk acquisition marks an exciting phase for the networking giant. Although integration is still in its early stages, it shows great potential for innovation. Cisco and Splunk are committed to providing security and observability solutions that adapt to the changing requirements of modern organizations and their users.
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