Company will be able to better monitor cloud-native workloads
Splunk is expanding its application monitoring and data analytics capabilities with its planned $1.05 billion acquisition of SignalFx, a four-year-old company whose technology will enable Splunk to extend its reach deeper into the cloud.
The Lowdown: The deal, which was announced Thursday, will give Splunk a much more significant presence in the cloud, combining the company’s application performance management (APM) capabilities with SignalFx’s cloud monitoring platform and enabling it to better monitor cloud-native applications as well as traditional on-premises workloads.
The Details: Officials with both companies expect the deal to close in the second half of 2020. Once it does, Splunk will integrate SignalFx’s technology into its own offerings to create a single platform that enterprises and developers can use to monitor and analyze applications and data in on-premises environments and in public and hybrid clouds. Splunk’s capabilities will envelop such modern technologies as microservices, containers like Docker, Kubernetes for container orchestration, and serverless computing.
The Impact: Migrating workloads into the cloud can make sense for a lot of businesses, particularly in terms of saving money and time on having to deploy and manage their own environments. But as they adopt more multicloud or hybrid cloud strategies, complexity can increase, including the ability to keep track of workloads both on premises and in multiple clouds. Having a single platform they or their partners can run to monitor and analyze these myriad workloads in disparate environments can reduce some of that complexity.
Background: SignalFx, which had raised $178.5 million, was hitting a sweet spot in the industry. Splunk noted a Gartner report that said by 2022, more than 75% of organizations worldwide will be running containerized applications in production, a significant jump over the 30% today.
The Buzz: “Data fuels the modern business, and the acquisition of SignalFx squarely puts Splunk in position as a leader in monitoring and observability at massive scale,” said Doug Merritt, Splunk president and CEO. “SignalFx will support our continued commitment to giving customers one platform that can monitor the entire enterprise application lifecycle.”
“By joining Splunk, we will create a powerful monitoring platform – one ready to support CIOs whether they have fully embraced cloud or have existing applications in the data center,” said Karthik Rau, founder and CEO of SignalFx. “As the world continues to move toward complex, cloud-first architectures, Splunk and SignalFx [offer] the new approach needed to monitor and observe cloud-native infrastructure and applications in real time, whether via logs, metrics, or tracing. The SignalFx team is thrilled to join Splunk to help CIOs capitalize upon the modern application portfolio.”