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Cisco and Splunk launch unified observability solution

EditorAhmed Abdulazez Abdulkadir
Published 2024/06/05, 18:44
© Reuters.

LAS VEGAS - Cisco Systems, Inc. (NASDAQ: CSCO) and Splunk (NASDAQ:SPLK) Inc. have announced a series of integrations and innovations aimed at enhancing enterprise full-stack observability. The collaboration, revealed at Cisco Live, seeks to provide customers with comprehensive visibility and analysis across their entire digital infrastructure, encompassing on-premises, hybrid, and multi-cloud environments.

The newly unveiled Unified Observability Experience aims to streamline troubleshooting across various IT landscapes by combining Cisco and Splunk's technologies. This includes the integration of Splunk Log Observer Connect with Cisco AppDynamics, as well as the Cisco AppDynamics integration with Splunk IT Service Intelligence (ITSI), which is designed to reduce alert noise and improve executive-level visibility.

One of the key features announced is the Cisco AI Assistant for AppDynamics, which utilizes generative AI to offer tailored responses and insights, facilitating more informed and rapid decision-making. Additionally, advanced AI capabilities have been introduced into Splunk ITSI, enhancing the management and accuracy of IT health insights.

The partnership also extends Cisco AppDynamics' Application Performance Monitoring (APM) services to be SaaS-hosted on Microsoft (NASDAQ:MSFT) Azure, supporting multi-cloud strategies and compliance with regulatory requirements. This expansion is scheduled to be available in the third quarter of the 2024 calendar year.

Stephen Elliot, Group Vice President & Analyst at IDC, highlighted the significance of the collaboration, stating that the combined strengths of Cisco AppDynamics and Splunk Observability, powered by Generative AI, present a comprehensive observability opportunity for enterprises. Similarly, Dan Field, Director of Platform and Network Engineering at United Airlines, expressed the company's support for the collaboration, emphasizing its role in enhancing customer satisfaction and loyalty.

The Single Sign-on and Log Observer Connect for Cisco AppDynamics are set to be generally available in the third quarter of 2024, with the updated Splunk TA for AppDynamics and Splunk ITSI App for Content Packs available on June 14, 2024. The Configuration Assistant, part of the Advanced AI for Splunk ITSI, is already available.

This integration marks a significant step in Cisco and Splunk's efforts to provide standardized observability solutions for enterprises, as the companies continue to focus on empowering customers to manage and secure their digital landscapes effectively.

The information in this article is based on a press release statement from Cisco Systems, Inc.

In other recent news, Cisco Systems Inc (NASDAQ:CSCO). maintained a Neutral rating from Piper Sandler and JPMorgan, with respective price targets of $52.00 and $53.00. This comes in light of Cisco's annual Live user conference and analyst day, where the company discussed updated financial targets and its strategic integration with Splunk. Additionally, Cisco has been making significant strides in artificial intelligence (AI), recently announcing a $1 billion fund for AI startups, including investments in Cohere, Mistral AI, and Scale AI.

The company also revealed a collaboration with NVIDIA Corporation (NASDAQ:NVDA) to launch a new AI data center solution, the Cisco Nexus HyperFabric AI cluster. This solution integrates Cisco's networking capabilities with NVIDIA's computing power and AI software. These developments indicate a strategic focus on AI as a key area for development and investment.

InvestingPro Insights

As Cisco Systems, Inc. (NASDAQ: CSCO) fortifies its enterprise solutions through strategic partnerships and innovations, its financial health and market positioning remain critical for investors and stakeholders. InvestingPro data provides a snapshot of Cisco's current market stance, revealing a market capitalization of $185.24 billion, which underscores the company's significant presence in the technology sector. Furthermore, the company's price-to-earnings (P/E) ratio stands at 15.4, indicating how shares are valued relative to its earnings. Adjusted for the last twelve months as of Q3 2024, this ratio is slightly lower at 14.17, potentially reflecting investors' confidence in the company's sustained profitability.

Despite a modest revenue growth of 0.85% over the last twelve months as of Q3 2024, Cisco's gross profit margin remains robust at 64.65%, suggesting efficient cost management and strong pricing power within its industry. Additionally, the company's dividend yield as of April 3, 2024, is 3.37%, which is particularly attractive for income-seeking investors. This figure is complemented by the fact that Cisco has raised its dividend for 13 consecutive years, as highlighted by one of the InvestingPro Tips, demonstrating a commitment to returning value to shareholders.

InvestingPro Tips also reveal that Cisco is trading near its 52-week low, which could present a potential entry point for investors looking for established companies with a history of dividend reliability. Moreover, Cisco is noted for its low price volatility, aligning with the preferences of investors who prioritize stability in their portfolio. For those considering deeper analysis, there are additional InvestingPro Tips available, including insights on Cisco's debt levels, short-term obligations, and analysts' earnings revisions.

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This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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