Splunk’s Acquisition by Cisco Accelerates Convergence of Network, Security, and Observability, Fueled by AI
Splunk’s Acquisition by Cisco Accelerates Convergence of Network, Security, and Observability, Fueled by AI
Chirag Mehta is Vice President and Principal Analyst focusing on cybersecurity, next-gen application development, and product-led growth. With over 25 years of experience, he has built, shipped, marketed, and sold successful enterprise SaaS products and solutions across startups, mid-size, and large companies. As a product leader overseeing engineering, product management, and design, he has consistently driven revenue growth and product innovation. He also held key leadership roles in product marketing, corporate strategy, ecosystem partnerships, and business development, leveraging his expertise to make a significant impact on various aspects of product success. His holistic research approach on cybersecurity is grounded in the reality that as sophisticated AI-led attacks become…...
Read moreTwo questions have haunted me for two decades: first, can we really address security without addressing networks? Second, are observability and security like oil and water? With customers adopting SASE (Secure Access Service Edge) solutions, we have begun to see a convergence of networks and security. Now, with Splunk's acquisition, Cisco has answered my second question.
Cisco officially closed Splunk’s acqusition a few days ago. Last week, the leadership from Cisco and Splunk communicated their joint vision in an executive roundtable that I attended. The roundtable featured Liz Centoni, Cisco EVP and Chief Customer Experience Officer, Tom Casey, SVP of Splunk Products & Technology, and Jeetu Patel, Cisco EVP and GM of Security and Collaboration. They together offered a glimpse into how they see the future of Cisco and Splunk working together to better serve their customers. Here's a breakdown of the key points, my brief analysis, and recommendations for customers.
Leaders' Vision: A Unique Combination of Security, Observability, and AI
The core message from Cisco and Splunk was clear: data, observability, and AI are the cornerstones of modern security. Jeetu Patel emphasized,
"If you want to be a world-class security company, you have to be a world-class AI company, and if you want to be a world-class AI company, you have to be a world-class data company."
What excites both companies is the unique combination their offerings bring. Cisco's strength in networking and security complements Splunk's expertise in data platform and observability. As Tom Casey highlighted, "There's a lot of complements between the two areas."
This unique combination, according to Jeetu, "doesn't exist in the market today." A fully integrated security and observability platform with AI at its core has the potential to revolutionize how organizations approach security.
Jeetu outlined three key objectives: enhancing efficacy through generative AI, improving user experience, and optimizing economics. In his closing remarks, he reiterated the companies' commitment to customer-centric innovation, “We will always start from the customer first and work backwards. We love our customers keeping us honest and making sure that we can actually drive to the outcomes.”
My Insights
- Cisco's acquisition of Splunk presents a unique opportunity to address customers' end-to-end cybersecurity needs, leveraging the power of AI and data analytics. Although integrations require time and effort, when executed effectively, they have the potential to solve complex challenges and enhance operational efficiency.
- Cisco and Splunk are culturally different companies; Cisco being a mature networking player known for its robust partner ecosystem, while Splunk holds boasts a broader developer reach with its security and observability offerings. Harnessing each other's strengths, they can foster a thriving cybersecurity ecosystem that paves a path for companies to build compelling solutions on their platform. A complementary acquisition typically benefits customers more than an overlapping one.
- Traditionally, observability and security were seen as distinct areas. Yet, their merging offers Cisco and Splunk an unprecedented opportunity to tackle enduring cybersecurity issues, aggravated by data silos. In a time when organizations struggle with a scarcity of cybersecurity expertise, Cisco's ambition to democratize cybersecurity via AI reflects prevailing industry patterns we observe, placing emphasis on enhanced tool adoption and fortified security posture.
Recommendations for CxOs
- As you navigate the convergence of networking and security, and formulate your AI strategy, reasses your current cybersecurity landscape. Look for opportunities to streamline your tools to drive increased adoption. Remember, increased adoption is superior to the allure of extravagant features.
- Advocate for improved integration between Cisco and Splunk by articulating specific business outcomes you aim to achieve. Communicate your expectations to both companies' leadership regarding the enhancements you anticipate in the coming weeks and months. Consider attending their conferences this summer, Cisco Live and Splunk .conf24, to gain insights into their respective product roadmaps and provide your valuable feedback.
- As you craft your security strategy and execution plan, check out our "11 Top Cybersecurity Trends of 2024 and Beyond." (If you're a vendor and don't have access to the report please contact me for a courtesy copy.) Drawing insights from numerous conversations with security, technology, and business leaders as well as extensive market research, this cybersecurity trends report offers a holistic view into the broader cybersecurity landscape. It also offers tangible recommendations for CxOs who are frantically navigating the cybersecurity maze to design and operationalize their cybersecurity strategy, with the objective to improve their defenses against increasingly sophisticated attacks.
Pallia (right) most recently was CEO for Wipro's Americas 1 unit and has been with the company for more than three decades. Pallia was responsible for Wipro Americas' vision, strategy and industries and was president of Wipro's consumer business and head of business applications services. Delaporte will remain with Wipro through the end of May for the transition to Pallia.
Wood spoke with industry analysts including me and Doug Henschen at AWS' New York offices. Here are some of the key themes to note.
