Yes, that is a very likely scenario. Cisco’s $28 billion acquisition of Splunk is the largest technology deal of the year and one of the largest software acquisitions ever. It is a sign that technology giants are increasingly willing to spend big to acquire software companies with predictable subscription revenue.
There are a number of reasons why this deal may ignite more software acquisitions even in the current economy climate. First, it is a validation of the value of software companies. Cisco is paying a significant premium for Splunk, which is a sign that it believes the company has a lot of potential. This could encourage other technology giants to pursue similar acquisitions.
Second, the deal is a sign of the growing importance of software in the technology industry. Software is now the driving force of growth for many technology companies, and Cisco is no exception. By acquiring Splunk, Cisco is gaining access to a leading software company that can help it accelerate its growth in key areas such as cybersecurity and artificial intelligence.
Third, the deal is likely to create a sense of urgency among other software companies. Many software companies are likely to be worried that they could be the next target of a major acquisition. This could lead them to be more open to selling their businesses, which could lead to a wave of software acquisitions in the coming months and years.
Overall, Cisco’s acquisition of Splunk is a significant event that could have a major impact on the technology industry. It is possible that this deal will ignite a software deal frenzy, as other technology giants rush to acquire software companies with predictable subscription revenue.