The Deal
Cisco closed its $28B all-cash acquisition of Splunk in March 2024, the largest deal in Cisco history. Splunk was the leading platform for security information and event management (SIEM), log analytics, and IT observability. The deal created a combined entity with massive security telemetry data.
Strategic Rationale
Cisco routers and switches see all network traffic; Splunk analyzes security events and anomalies. Combined, they could apply AI to detect threats across both network and application layers. The thesis was that AI-powered security requires both data sources (network telemetry and log analytics) in one platform.
Impact
The acquisition created the largest security data platform in the industry. Cisco AI capabilities combined with Splunk data analytics enabled automated threat detection, response, and prediction at scale. It repositioned Cisco from a hardware networking company to an AI-powered security platform.
What Happened After
Cisco integrated Splunk into its security portfolio, launching AI-powered features that analyze network traffic and application logs simultaneously. The combined platform automated many security operations center (SOC) workflows that previously required human analysts. Splunk AI Assistant became a key differentiator against competitors.