202301 Oct

Cisco-Splunk under the microscope: Joint customers weigh in


\ For Cisco’s part, the acquisition brings more software, an additional $4 billion in annualized recurring revenue and a chance to grow Splunk’s business, particularly internationally. Our initial research shows joint customers are generally positive on the deal, particularly with respect to Cisco’s expanded portfolio in security and observability — with, however, some caveats and concerns around pricing. The stock did get a bump when it was reported in February 2022 that Cisco was offering $20 billion to buy Splunk and around that time the board removed Doug Merritt as chief executive and brought in Gary Steele, a CEO with experience selling companies. Erik Bradley shared his thoughts on the acquisition and data as follows: Huge overlap between Cisco and Splunk accounts speaks to potential synergies OK, let’s get into the customer analysis. As shown above, nearly half of the respondents said “We don’t like the pricing but we feel locked in.” Kind of Oracle-like and actually a potential positive for investors — meaning the business case to stay is better than the switching costs and risks of migration.

Source: Siliconangle