Splunk acquires cloud monitoring platform SignalFx for $1.05 billion
Splunk, which provides operational intelligence software that reports and analyzes up-to-the-minute machine data, today announced a definitive agreement to acquire SignalFx, a cloud monitoring platform for infrastructure, microservices, and containerized apps. Under the terms of the arrangement, Splunk will plunk down approximately $1.05 billion for SignalFx, 60% of which will be in cash and the remainder in common stock.
Both companies expect the deal to close in the second half of fiscal year 2020, subject to regulatory reviews.
Splunk says that SignalFx’s suite will enable its IT and developer customers to better manage and observe data in the cloud, on-premises, or in hybrid environments in real time at scale, while helping to cut costs and boost revenue. How? By leveraging the latter’s platform to split metric data points into two streams — one for human-readable metadata and the other for time-series values — and route them to a Python-like analytics framework configurable via dashboards and APIs.
Splunk points out that according to Gartner, more than 75% of global organizations are expected to be running containerized applications in production by 2022, up from fewer than 30% today. And it cites an IDC report that forecasts app performance monitoring software-as-a-service (SaaS) solutions will grow at triple the rate of on-premises solutions over the next five years.
“Data fuels the modern business, and the acquisition of SignalFx squarely puts Splunk in po