In my perspective, this deal holds significant promise, as I elucidated in my detailed article.

One pivotal benefit is the reinforcement of Cisco’s Cloud Security Portfolio. While the price tag may appear substantial, it is reasonable given Splunk’s impressive $3 billion Annual Recurring Revenue (ARR).

Furthermore, this acquisition presents an opportunity for Cisco to undergo a pivotal shift in its sales approach. Cisco’s sales team is often perceived as a relic of the past, primarily focused on hardware sales and less versed in the nuances of cloud-based selling models.

The cloud-oriented selling model, characterized by pay-as-you-go flexibility and shorter-term commitments, contrasts sharply with Cisco’s traditional approach, which leans toward longer-term contracts and upfront deal sizes. AWS, for instance, blazed a trail with its Channel Partner Private Offer (CPPO) encompassing service partners and Independent Software Vendors (ISVs).

With this acquisition, new, cloud-savvy sellers are expected to join Cisco, reshaping the company’s sales mindset. Under Doug Merritt’s leadership, Splunk successfully navigated a transformation from an on-premises orientation to a cloud-centric approach. Given the substantial size of this deal, it is evident that Cisco is poised to undergo a significant transformation in its Cloud Security Business Unit.

Notably, Cisco’s previous Thousand Eyes and Meraki acquisitions have thrived by preserving their distinct identities within Cisco’s established corporate culture. From an execution perspective, the key to success is ensuring minimal interference from other Cisco teams in Splunk’s business operations.

In summary, while the acquisition may seem ambitious, it holds immense potential for Cisco’s Cloud Security Portfolio and the evolution of its sales strategies. This venture could be successful with the right approach and minimal disruption by other Cisco business units.”



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