Thread regarding Cisco Systems Inc. layoffs

forgot about this post....it's so on point about splunk. wow.

Fact-Annual Operating Cost to Cisco to Buy Splunk
$28 billion x (7 percent interest) = One Billion Nine Hundred Sixty Million Paid Annually

former splunker here. left super big tech co in SF to go to splunk many years ago. as soon as I landed, it was just flashy toys and even flashier people. they do not know how to do basic project mgmt, app/dev, feature push, beta, integrations. I was there until mid 2021 when I couldn't pull any more hair out (I am already bald). Everything was a fire. The new talent they hired the last few years made it worse. people that have no business even being near tech like that aside from their pretty bedazzled iphones. managers who really also shouldn't be near apps that are working on critical security vulns in major corps. lookng back, it's easy to see...it was never the people, but jjsut the products. It would be smart of cisco to cut the extra fat...and man there is a ton of it.

Splunk isn't profitable, exiting fiscal Q2 with a $63 million net loss. So Cisco will likely trim costs after the acquisition closes at around the third quarter of next year.

I'm so excited! Cisco Splunked all over me!

My friends at Splunk are all laughing at the crazy price Cisco paid

@yrf
“ Something to do with wannabe execs with last name Patel at Cisco. Very similar case with the SE director in the UK. And both of them are bald! Go figure!”

Every time I see JP or CP jiving on WebEx I cannot help but think of a rhyme we used to yell as kids in Lucknow: “ Gonja Patel tedi khopri mein tel hain …”

They’ll pay for it with more lay offs. They don’t give a sh-t about how they impact people.

@5scw+1oIPaA6B Even worse because we aren’t paying cash - we’re taking out loans. So take your calculation and subtract it from the annual splunk revenue

$28B x 5% Interest in the bank = $1.4B income per year-Enough Said

Our CFO has done nothing but write bad checks. The stock hasn't moved a needle since he was brought in with all that hype. A new grad with decent education could do his job.

The evolution of this acquisition:
Splunk, sp--k, splootch.

Jeetu has been an absolute nightmare. Buying companies is all he has done over the last few years. And not great ones either. When he talks I mute him. In the meantime talking to a few Collab friends it is an absolute disaster.

Splunk has not had profits the past 4 years.

Splunk have never had positive earnings—ever.

Wait until you get to Cisco. You'll see "a more disconnected and disorganized group of people who seem to have no idea what it takes to run a successful business in today's world" like you could never imagine.

Chuck will be fired by a shareholder revolt in two years over this debacle. WTF told him to buy that pile of sh-t? Who the he-l is advising him??

Former Splunker here. Every comment about the company I read on here is spot on. The company is a joke. The leadership is absolutely abominal. I came from a big tech giant. In a year at splunk, I saw the highest levels of incompetence, bigotry, rac-ism, s-x-ism, discrimination and well, they dont even know how to manage simple migrations. This all makes me laugh cause half their workforce dont belong in tech. Even if it's bad play for CSCO, I hope CSCO helps these people realie they're not in Kansas any more. There are a ton of managers there that have been livijng way too high on the horse. The funny thing is, they know NOTHING about the tech they sell or support. Worst year of my life working there. Man of the guys and gals there have a real high opinion of themselves....without ever achieving anything even relevant. You can get hired by Splunk today if you know how to spell 5 of the 6 letters in Splunk. Happy it will be gone soon.

I can't remember the exact year and number, but I do remember that sometimes between 2015 - 2017 Cisco had some 60 - 70 billion in cash. That's before Trump's tax reforms. Throughout all these years, with all the acquisitions that pile has been decreasing. With this acquisition, Cisco will run out of cash and will end up with debt. All those acquisitions didn't increase the cash, just melted it away. Market cap didn't break out significantly either.

Unless this gonna bring any real positive changes in Cisco's revenue and profits, I don't know what will be the rational for keeping Chuck or Jeetu any more. Too much money has been wasted. Too much.

The leadership at Splunk is a textbook example of incompetence. I've never seen a more disconnected and disorganized group of people who seem to have no idea what it takes to run a successful business in today's world.

The leadership at Splunk just hustled Chucky to the tune of $28B. By what metric is that not running a successful business?

It amuses me that you took time to post that diatribe and never once considered that question. Most likely you're up to your eyeballs in The Matrix and don't realize that conning marks out of their money is the only important thing. Not muh rapidly evolving technological landscape (blah blah blah...)

All cash offer.
We make Billions don't you know.

Cisco used to brag that they never had debt, but now Chuck takes out his credit card and charges $28B for legacy cr-p

worst acquisition ever

2023 Total Compensation

Chuck Robbins: $29.3M
Gary Steele: $51.2M

CR needs a boost

Duh?
CFO says Cisco will fund the transaction via a mix of cash and new debt
Cisco does not have enough cash on hand and will be borrowing at high interest rate to buy legacy software for $28B

D-MBEST acquisition ever....Talk about OVERPAYING!!!!!!
Splunk revenue $3.5 billion per year with EBITDA around $160M.
Results in a NEGATIVE net income because Splunk has $4B of debt
And self described math guru Chuck pays $28 BILLION!!!!

Former Palo Alto, current Juniper employee here. Not knowing the Cisco environment (outside of friends that work there), on the surface this could be a shot in the arm for Cisco. Splunk’s capabilities in AI, security, and observability should complement Ciisco’s current portfolio. Could be a nice move for them.

28 Billion!! HAA HAHAHAHA HAHAHA

Scienti** Atlan** part deux. The Return of the D-mb & D-mber

This isn't 2014 when Splunk was still relevant. I can't believe that they're pi----g away $28 billion for ... wait, I forgot about the SciAtl acquisition where Cisco paid to enter the set top box market when that was on the decline. Never mind. Now watch them give Splunk to CX where it will go to die.

Just spoke to my buddy at Splunk who said Cisco paid double what the private equity offers came in at
Plus, sales folks loaded up their pipeline with FUD so they could try to hang on long enough to dump their RSU's which they are all doing today thanks to Chuckie's $28B blunder

Face palm. What on earth is Cisco thinking? Palo Alto and a decent firewall that works is what Cisco should acquire, not Splunk!

yep CSCO needs it. Cannot even protect their own IT. DuO MFA, and Next Gen FWs getting hacked left and right.

Lol, Csco so desperate in cybersecurity space. They knew the security ship had sailed, long and far already. The Fortinets, the Palo Altos too far now to catch up.

So much for the Thousand Eyes, AppDynamics, DNAC hype machines BSes. If they are doing well why acquire Splunk?

Acquire another hype company. Bail after 2 yrs, rinse and repeat. Same cycle all over again.

Agree. JP is a waste of space. Incompetency personified. Couldn't believe him in that last All hands call. Something to do with wannabe execs with last name Patel at Cisco. Very similar case with the SE director in the UK. And both of them are bald! Go figure!

wow JP's uncle is in this thread - see the down vote

Sad to see again how clueless Chuck and his CFO are.
Splunk is not a profitable company!
Splunk has not had profits the past 4 years.
Average losses over the past 4 years is +/-$700 MILLION PER YEAR!
Splunk has a NEGATIVE net cash position of negative - $1.5 billion ($4B debt - $2.5B cash).

JP is one of most (if not the most) incompetent executive I have encountered in my long career in this industry. I tuned myself off whenever he is on. It is not worthy a minute of my time. In reality, he has demonstrated ZERO leadership since he was on as far as I can tell. The good thing is that since he is way above my level in the management chain, I can perform all my daily works without dealing with JP period.

Face palm. It really is like watching a train wreck in slow motion

@aru+1oIPaA6B
I wish it was truth, but I don't think Chuck did it without JP's input. I believe Chuck announced it first, because it is a really huge money.
Again, I'd like you were right about this one, as I'm absolutely no fan of JP, but I'm afraid Chuck can't admit he made a big mistake by bringing in JP.

Security always puts the shiny new object in charge of the BU. Remember OpenDNS Dave U? Question is will JP stay around, move on, manage just Collab, or perhaps he is wanting the CEO role from Chuck.

Interesting Beat. It’s clear that JP and what’s her name weren’t even involved. This is a vote of no confidence from CR in them and their security and observably portfolios. CR ran this acquisition with little to no input from them, and GS will report to him not them.