Splunk announced a definitive agreement to acquire SignalFx, a SaaS leader in real-time monitoring and metrics for cloud infrastructure, microservices and applications.
Splunk is already a leader in ITOM and an AIOps pioneer and, upon close, will be a leader in observability and APM for organizations at every stage of their cloud journey, from cloud-native apps to homegrown on-premises applications.
This breadth of innovation will help customers deliver cost savings, increased revenue and an improved customer experience, and firmly places Splunk as the vendor most qualified to deliver these outcomes across the entire suite of enterprise applications at any scale.
Under the terms of the agreement, Splunk will acquire SignalFx for a total purchase price of approximately $1.05 billion, subject to adjustment, to be paid approximately 60% in cash and 40% in Splunk common stock. The acquisition is expected to close in the second half of fiscal 2020, subject to customary closing conditions and regulatory reviews.
“Data fuels the modern business, and the acquisition of SignalFx squarely puts Splunk in position as a leader in monitoring and observability at massive scale,” said Doug Merritt, President and CEO, Splunk. “SignalFx will support our continued commitment to giving customers one platform that can monitor the entire enterprise application lifecycle. We are also incredibly impressed by the SignalFx team and leadership, whose expertise and professionalism are a strong addition to the Splunk family.”
“By joining Splunk, we will create a powerful monitoring platform – one ready to support CIOs whether they have fully embraced cloud or have existing applications in the data center,” said Karthik Rau, Founder and CEO, SignalFx. “As the world continues to move towards complex, cloud-first architectures, Splunk and SignalFx is the new approach needed to monitor and observe cloud-native infrastructure and applications in real time, whether via logs, metrics or tracing. The SignalFx team is thrilled to join Splunk to help CIOs capitalize upon the modern application portfolio.”
Real-time monitoring of any data at any scale
Business is evolving at a speed that requires new approaches for software development, deployment and monitoring. Cloud-native technologies such as microservices, containers, orchestrated environments like Docker and Kubernetes, and serverless functions are fueling business outcomes not anticipated just a few years ago as data volumes continue to grow exponentially.
At the same time, they introduce unique challenges to IT professionals and developers tasked with ensuring high availability and seamless operations. This is partly why IDC, “continues to expect that SaaS-based solutions (in APM) will grow at triple the rate of on-premises solutions over the next five years…”
The combination of Splunk and SignalFx will give IT and developers a data platform that allows them to monitor and observe data in real time, no matter the infrastructure or data volume, helping them cut costs, boost revenue and improve the customer experience. This enables organizations to work across their entire data landscape, not just silos in the data center or cloud-native environments.