Cisco’s $28 billion Splunk deal may ignite software deal frenzy

NEW YORK – Cisco Systems’ $28 billion deal for Splunk is likely to prompt other technology giants to splash out on similar acquisitions of software vendors with predictable subscription revenue, investment bankers and analysts say.

Splunk, a cybersecurity and data analytics firm, was in the process of shifting its business model from licensing its software to charging for subscriptions when it announced an agreement last week to sell itself to Cisco, making it the third-largest software acquisition of all time.