Cisco Systems Inc.’s Chuck Robbins, who has spent years working to restore the networking company to its former glory, is now looking to the $28 billion acquisition of Splunk Inc. to help speed up the effort.
Robbins, Cisco’s chief executive officer since 2015, is betting that Splunk’s data-crunching credentials can help fuel growth and attract new kinds of customers in the artificial intelligence era. But the acquisition — Cisco’s biggest ever — is unlikely to revitalize the Silicon Valley stalwart by itself, raising the question of whether more deals are on the horizon.
Robbins pitched the deal as a chance to strengthen Cisco’s offerings in markets that are growing quickly. It also will build on initiatives that he’s already put in place through smaller deals and internal investments, he said. Splunk tools allow subscribers to better protect their networks and diagnose where — and how — something has gone wrong.
In response to new trends in networking, he opened up Cisco’s gear so that customers can buy just the parts they want — down to individual components. He’s added more software and services, mostly provided via the cloud, mirroring a shift at Microsoft toward long-term relationships. While people still think of Cisco as a seller of switches and routers, they should remember that the hardware is now sold with software and services, he said. That keeps customers in its orbit.
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