Cisco buy Splunk, But SIEM Challenges Abound 2023

Cisco buy splunk
Cisco Buy Splunk

In this article you read about cisco buy Splunk…! In the world of technology, things change fast. A good example of this is the recent news that Cisco is buying Splunk for a whopping $28 billion.

Now, let’s go back to 2020 for a moment. Back then, Splunk was a big name in a field called security information and event management (SIEM), and their stock prices were sky-high. But two years later, in 2022, they were struggling to shift to the cloud, losing money, and their stock prices had taken a 50% nosedive. During this time, there were rumors that Cisco might buy them, but that deal didn’t happen.

But here’s where it gets interesting. Today, Splunk investors are cheering because Cisco just announced they’re buying the company for $157 per share. That’s 30% more than what Splunk’s shares were worth yesterday, although it’s still 30% less than the highest price ever back in September 2020 when they hit $223.

In the fast-moving world of tech, big changes like this are pretty normal. They show how unpredictable the industry can be and how bold moves like Cisco’s can reshape its path.

Cisco buy splunk
Cisco Buy Splunk

In only two years, a ton has changed. How about we investigate the total story to understand for Cisco’s future.

Cisco Buy Splunk: Splunk’s Cloud Splash Sputters.

In 2020, Splunk, like many other tech companies, had a great year. This was because Fortune 500 companies all around the world were investing heavily in cybersecurity technology. They did this to improve their remote work setups and move their operations to the cloud.

Splunk benefited greatly from numerous rumors, despite the fact that it wasn’t thought of as a key component of the cloud. However, it was just starting the process of moving its local information technology and driving SIEM platform, including its product dubbed the Splunk Recognizability Cloud, onto a cloud administration. Due to the fact that many of Splunk’s clients actually use its SIEM as an on-site solution, this engagement has had its challenges.

In late 2020 and mid 2021, Splunk confronted a few difficult stretches. They missed their income targets, which frightened off financial backers and made their stock cost drop. Splunk was losing cash. One of the fundamental issues was that they were changing their items from customary programming to another cloud-based framework, which brings in cash after some time. Simultaneously, clients were asking why the security programming they sold was so costly and begun checking different choices out. The market wasn’t as dependable as it used to be.

However, in 2022, things changed. Splunk got Gary Steele, a tech master, to lead the way. He turned the organization around and, surprisingly, joined Cisco’s top group in the wake of saving Splunk and supporting their stock cost. Splunk’s new story is about a major rebound.

Cisco Hunts ARR.

In 2022, Cisco first showed interest in Splunk, which led to rumors of a possible deal. These rumors started with the Wall Street Journal and gained traction but were later cooled down by Cisco’s CEO, Chuck Robbins. Back then, Splunk was valued at over $20 billion, making it quite expensive for Cisco. So, Cisco decided to wait for the right moment, and in hindsight, that was a wise move because Splunk’s value dropped, making the current deal more favorable.

From a financial perspective, this deal makes sense for Cisco as it helps them shift towards Annual Recurring Revenue (ARR) by injecting nearly $4 billion into their finances. Robbins made a smart move by not buying Splunk when its stock price was at its highest, around $220 per share in 2020. Instead, the current deal is priced at $157 per share, a better deal.

However, integrating Splunk into Cisco’s system could pose challenges. Cisco’s customers often complain about extra costs for licensing their products, and Splunk’s Security Information and Event Management (SIEM) solution is seen as expensive by many in the cybersecurity field. This might reinforce Cisco’s image of prioritizing revenue over customer satisfaction.

Moreover, there are questions about how Splunk will fit with Cisco’s other data observability platforms, like AppDynamics and ThousandEyes. This situation calls for some tough decisions to ensure everything works well within Cisco’s evolving portfolio.

Cisco buy Splunk, SIEM Issues Are Simmering.

In the world of cybersecurity, let’s talk about SIEM, something getting a lot of attention these days. SIEM is a fancy system for handling and analyzing loads of data, and it’s quite complex. Now, there’s a shift happening. Splunk, a big player in old-school SIEM, isn’t as dominant in the newer cloud-based data world. Some newcomers like Exabeam have jumped in with more modern cloud-based solutions, and folks are also exploring cheaper open-source options for managing data. Plus, there are other leaders like Datadog in the data tracking game.

So, what’s the fuss about? Well, SIEM systems, like the one Splunk offers, handle huge data piles but can be expensive. And in today’s data-heavy world, cybersecurity experts are wondering if there’s a better, more automated way to handle all that data, like using free cloud tools or other tricks.

For example, a recent survey found that a lot of security teams are feeling overwhelmed by SIEM systems. Nearly a third of them don’t even know how to add new data sources to their SIEM systems, and over 40% say it takes forever to do it. Confidence in SIEM systems detecting new threats? Not very high.

Now, Cisco has some work ahead. They’ve made a big acquisition that’s boosted their earnings, but they need to improve Splunk’s cloud capabilities and how they position SIEM in the market. They’re up against tough competition, including Datadog.

Who’s happy about all this? Splunk’s shareholders, for sure. The news of this big change has sent Splunk’s stock prices soaring.

Also, You can checkout Cisco’s official website.

cisco buy Splunk

cisco buy Splunk

cisco buy Splunk

cisco buy Splunk

cisco buy Splunk.

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