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Cisco made headlines in late 2023 when it announced its $28 billion acquisition of Splunk, making it, by far, the largest acquisition in the company’s history.
The move sparked massive speculation from Cisco watchers as to why the company was making such a bold move. The most obvious idea was that it could help the security industry, which Cisco is currently revamping with its security cloud. It was also possible that she could add another dimension to her networking activity. Other benefits include full-stack observability and leveraging data from Splunk’s service group to drive better business outcomes.
Until recently, Cisco and Splunk remained tight-lipped on the subject because they couldn’t say much legally while the deal was being finalized. In March, Cisco completed its acquisition of Splunk, which gave the company the freedom to lay out its vision. Cisco recently hosted a roundtable with Splunk to discuss how the acquisition will be used to transform its business.
Cisco and Splunk: a shared strategic vision
During the panel discussion, Liz Centoni, executive vice president and chief customer experience officer, Cisco, moderated a discussion with Tom Casey, executive vice president and general manager of Splunk products and technology, and Jeetu Patel, executive vice president and general manager of security and collaboration at Cisco. The panel discussed how the combined companies can deliver unparalleled visibility across the entire digital landscape, leveraging their combined strengths in networking, security, observability and artificial intelligence.
The session began with a discussion about Cisco’s motivation for acquiring Splunk. The purchase was motivated by a strategic vision which is based on three fundamental pillars:
Data as a differentiator
Both companies recognize that although AI tools and models are widely available, the real competitive advantage lies in the quality, reliability and actionable insights derived from the data.
Cisco has access to vast data sets through its networking, security, and operations. Meanwhile, Splunk has its own high-quality data and analytics capabilities.
Cisco’s Centoni highlighted this importance in the artificial intelligence era when she said: “When you think about AI, everyone has access to the same AI tools and models. It’s the data that makes the difference. The combination of Cisco and Splunk gives Cisco more data than any other infrastructure provider.
Unified security and observability
Cisco and Splunk plan to offer more consistent observability solutions, giving customers a complete view of their digital infrastructure. This integration will reduce the time spent troubleshooting issues by analyzing connected data to resolve them quickly.
Historically, observability and security were separate disciplines, but in recent years these sectors have been on a collision course. In my discussions with Patel, he kept talking about how the two areas go hand in hand and Cisco now has the data to support this vision.
Enhanced digital experiences
Cisco and Splunk will help their customers deliver superior digital experiences by aligning their integrated offerings. Specifically, the integration with Cisco’s ThousandEyes will enrich the digital experience for existing Splunk customers by providing better insights into network routes and user behavior.
An elite partnership
Cisco builds on Splunk’s reputation as a leading provider of security solutions for businesses around the world. Cisco’s advanced intelligence tools, like Talos, will further enhance Splunk’s offerings, making it an even more attractive option for businesses looking to strengthen their security setup.
For example, integrating Cisco cloud, user and breach protection technologies with security information and event management (SIEM), security orchestration, automation, response (SOAR) and attack analysis from Splunk will be a powerful combination.
“We’re taking a unique approach to delivering unified security and observability solutions because both are needed to address almost any type of problem, whether it’s a bad piece of deployed code, a ransomware attack or even a beneficial traffic spike. » said Casey. “With Cisco, we can provide unprecedented visibility across the entire digital footprint. »
Improved security with AI
The merger of Cisco and Splunk isn’t just about combining technologies; this brings AI at the forefront of cybersecurity.
Cisco is deeply invested in artificial intelligence, leveraging it across all internal functions beyond product development and integrating AI capabilities, models and tools across its portfolio. One example is the creation of Silicon One, a new type of chip intended to power AI workloads on hyperscalers and enterprise networks.
With Splunk, Cisco is adding data-enabled security features. Patel explained: “To be a world-class security company, you have to be a world-class AI company. To achieve this, you need to be a world-class data company, and Splunk will make us better at that.
Security AI can play a key role in closing the security talent gap. Patel mentioned that millions of security jobs go unfilled each year in the United States. Around 90% of companies have multiple vacancies, highlighting the complexity and demand in this area.
Generative AI and cybersecurity
Generative AI shows promise in solving three critical areas of security: improving efficiency, improving the security and IT user experience, and reducing the total cost of ownership of security systems. security.
For example, integrate generative AI tools like Cisco AI Assistant in various products would simplify user engagement with technology. Users can express their security intentions in natural language, which the AI Assistant interprets and then helps set policies, manage network configurations, and troubleshoot issues.
“Each of our products will be under the Cisco AI Assistant banner. It will be both integrated into the products and which you can use to access the system page and ask questions. Splunk will also integrate its dataset into it over time, which is a very logical expansion,” Patel said.
While AI can be incredibly useful, especially in times of crisis, human judgment remains essential. Therefore, a balanced approach is needed, in which AI helps but does not replace human decision-making. Both companies understand the importance of Ethical AI where improvements are made responsibly while maintaining and building customer trust.
Bottom line: Cisco’s Splunk acquisition incorporates AI
For AI to be truly effective, it must be securely integrated into systems and supported by substantial volumes of data for training. Cisco is currently working to integrate AI into its cybersecurity framework, with significant developments expected in the coming months.
The acquisition of Splunk marks an exciting phase for the networking giant. Although integrations are still in their early stages, they have great potential for innovation. Cisco and Splunk strive to provide security and observability solutions that adapt to the changing demands of modern organizations and their users.
For a comprehensive portrait of AI providers meeting a wide range of business needs, read our in-depth guide: 150+ Best AI Companies 2024
