Cisco announced plans to acquire data analytics vendor Splunk, aiming to provide enterprises with deeper visibility and threat detection capabilities as artificial intelligence (AI) adoption continues.

Cisco said in a statement Thursday that the acquisition will create one of the world’s largest software companies, with an estimated stock value of $28 billion and cash equivalent of $157 per share. The network equipment vendor added that the deal will also increase recurring revenue.

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Chuck Robbins, CEO and chairman of Cisco, said the union will promote “the next generation of AI-powered security and observability,” moving companies from threat detection and response to threat prediction. He said he would promote prevention. post.

Robbins said the IT landscape will continue to evolve as organizations digitize their businesses and the adoption of AI accelerates, noting that these new technologies will bring new opportunities and become more complex.

“Data is one of the most powerful resources in business, and every organization relies on it to maintain secure connections, run their business, and make mission-critical decisions,” he said. Ta. “But customers need a better way to manage, protect and unlock the true value of their data while remaining resilient and secure in an ever-changing world.”

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To help enterprises do this, he preached the need for the Cisco Security Cloud, which provides visibility into many forms of security data, including network data, identities, email, web traffic, endpoint devices, and processes. I did.

The addition of Splunk’s data analytics platform further strengthens Cisco’s security offering, providing coverage across applications, devices and clouds, the vendor said.

This is critical in today’s hyper-connected world, where data is everywhere and organizations rely on it to run their businesses, Cisco said. “Given the acceleration and adoption of generative AI, the expanding threat surface, and multiple cloud environments, it creates a level of complexity that organizations have never faced before,” he said at Cisco.

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“In addition to data and security challenges, generative AI is rapidly transforming industries and creating new opportunities,” Robbins said. “Cisco and Splunk will work together to look at a wide range of data across applications, security, and networks.”

He said both vendors intend to help enterprise customers take advantage of these AI opportunities and gain visibility into their data.

The acquisition is expected to close by the end of the third quarter of next year, subject to regulatory approval, after which Splunk President and CEO Gary Steele will join Cisco’s leadership team, who will report to Robbins. Be part of the team.