Cisco-Splunk Deal Reshapes Security Landscape

Acquisition consolidates analytics and SIEM, disrupts competitive dynamics — yet channel and product integration risks could impede execution.
By Larry Walsh

Cisco has announced plans to buy security information and event management (SIEM) market leader Splunk for $28 billion cash in a move to bolster its security portfolio and increase revenue generated from software and services. The merger of these two market leaders will consolidate power in the security data analytics and network monitoring spaces and force significant strategic shifts among rivals and cause channel disruption.

Competitors will jockey for position via partnerships, pricing maneuvers, and attempts to capitalize on uncertainty during the transition. Channel partners serving both vendors will see programs merge, likely losing some relationships in the process. While the deal could allow Cisco to provide more int...

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