“SignalFx will support our continued commitment to giving customers one platform that can monitor the entire enterprise application lifecycle,” Merritt said.
“We are also incredibly impressed by the SignalFx team and leadership, whose expertise and professionalism are a strong addition to the Splunk family.”
Under the terms of the agreement, Splunk will acquire SignalFx for a total purchase price of approximately US$1.05 billion, subject to adjustment, to be paid approximately 60% in cash and 40% in Splunk common stock.
Gartner says 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 organisations to work across their entire data landscape, not just silos in the data center or cloud-native environments,” Gartner says.
According to Gartner, “by 2022, more than 75% of global organizations will be running containerized applications in production, which is a significant increase from fewer than 30% today.”
“Customers will be able to use Splunk and SignalFx technology to deploy applications in the cloud, on-premises, or in hybrid environments and get real-time observability and response across all of these systems with a single interconnected platform,” the analyst firm says.
And Gartner says Splunk is already a leader in ITOM and an AIOps pioneer and, upon close, “will be a leader in observability and APM for organisations 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,” Gartner notes.