What am I missing? Seems like they aren’t doing that well on their own, and it’s just a minor product play for us. But they make it sound like it’s the second coming.
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The Splunk buy is about the value of their team. Splunks revenue has been skyrocketing...
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10 hours ago by Anonymous | 5 reactions (+0/-5)
I'm curious how many of the five actually looked at the revenue growth.
Splunk is also cutting 7% of it's employees...
We know history is littered with acquisitions that failed not because of the technology or the strategy, but because of cultural incompatibilities Will this one be different?
Chucky is using Splunk messaging to let the world know this is his ticket out
The Splunk buy is about the value of their team. Splunks revenue has been skyrocketing, and if we can capture even a quarter of that in the observability space, it'd be a tremendous tail wind given Cisco's stagnant revenue over the past few years.
https://www.macrotrends.net/stocks/charts/SPLK/splunk/revenue
I too questioned it at first, but after looking into it, it's a good move. As long as we can integrate them successfully, they could be one of the rare success stories of Cisco's M&A machine.
Splunk is an observability play.
Cisco has bought several companies we are trying to integrate into a data monitoring and internal application/server monitoring product line. (Thousand Eyes, AppD, Splunk, Duo, etc).
It is one of the few innovative ideas Cisco has come up with in a while - lead in the security and observability space. Security we already have some good traction in, and observability is a new market area that we're trying to create from a bunch of little start-ups pieced together.
If it works, it might just drag us out of this mess we've been in for a decade or so. Not a big jump to go from Networking to Security - they play in the same spaces.
Why build a succession plan when you can buy one for $28B?
Splunk is a ~$3.5 revenue a year company, and established in its domain. I can’t see how Cisco buying it will increase that number greatly, especially with a number of mature competitors including Microsoft and IBM.
Even if the number goes up a bit it will take 5-6 years to just match the buy price…doesn’t make sense to me.
Chuck has been telling Wall Street that Cisco was becoming a software company. In fact, for the last nine years, he was simply recasting SmartNet revenue as software subscription revenue.
All of the SmartNet revenue has been moved over to software subscription revenue, and Chuck still hasn't created an actual software revenue stream that can move the needle in terms of revenue growth.
He bought Splunk on his way out of Cisco so he can pretend that he actually created a successful software business at Cisco while he's spending the hundreds of millions of dollars he collected while laying off tens of thousands of Cisco employees.
OP is missing the big picture. SPLUNK leadership will be the NEW Cisco leadership. Bye bye MM, then CR after acquisition is done. Changing of the guards.
The revenues booked will help cook the books a few more years while the next batch of buffoon leaders comes on to pillage some more.