Cisco is set to acquire Splunk in a monumental $28 billion deal, creating an opportunity to shift from threat detection and response to predictive threat prevention.
Additionally, the acquisition merges Cisco’s recently launched extended detection and response (XDR) platform with Splunk’s well-established security information and event management (SIEM) platform, potentially using AI to predict and prevent threats. While Cisco’s stock experienced a drop, Splunk’s stock surged, with the deal expected to be completed by September 2024.
Furthermore, Splunk, known for generating more than half of its $3.65 billion in sales from cybersecurity, offers a comprehensive suite of security services, including SIEM, security orchestration, automation and response, user behavior analytics, and more.
On the other hand, Cisco’s security business, though accounting for less than 9% of its overall revenue, is more than double the size of Splunk’s security practice in absolute terms. Under the leadership of Jeetu Patel, Cisco has focused on data correlation to assess security incidents, recently launching Cisco XDR and expanding its security offerings.
This acquisition signifies a significant move in the cybersecurity landscape, emphasizing the importance of proactive threat prevention through the combination of XDR and SIEM capabilities. It reflects the ongoing evolution of cybersecurity strategies in response to emerging threats and the need for comprehensive security solutions that can predict and prevent threats effectively.