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Splunk: A Great Company
to Invest?
By Abhinav Bisht, Brian Blades, Joshua Seeb

Presentation Outline
1. Introduction
2. Splunk’s Technology and Capabilities
3. Splunk Compared to Competitors
4. Business Analysis
5. Products Offered + Growth
6. Conclusion
7. Works Cited
8. Q&A

Introduction
● The Foundations of cloud computing can be traced back to the 1960s (Fano 1964)
○ MIT’s Computer Time-Sharing System (CTSS)
● Big data is becoming increasingly available and smart companies are taking advantage of it
○ A Bokman et al study found that data-driven companies are 19 times more likely to achieve and maintain a
proﬁtable status compared to non-data-driven companies.
● Due to the complexity of the environment, many companies have chosen to outsource its big data
management to experts, such as Splunk

Introduction (cont’d)
● In addition to the high complexity of Big Data interpretation, a Capgemini report has found that
one of the reasons companies fail to invest in Big Data is lack of an IT budget.
○ High start-up costs
○ Space/power/maintenance for servers
● Companies such as Splunk can ﬁll this role at an initial lower cost to the consumer.
○ An Accenture study found that nearly every respondent felt Big Data was important to their organization.

Introduction (cont’d)
● Splunk was founded in 2003 by Erik M. Swan, Michael J. Baum, and Robin K. Das
○ Started out as a “really complicated” transactional engine dashboard.
● Customers gave feedback that the best part of the platform was the search feature for machine
data
○ Shifted to “Google for machine data”
● Today Splunk provides services across three broad functions:
○ IT, Security, DevOps
○ 91/100 Fortune100 companies utilize Splunk’s platform

Splunk’s Technology and Capabilities
● Capabilities:
○ Machine learning
■ Artiﬁcial intelligence integrated into platform
○ Collaboration and orchestration
■ Accessible from mobile devices
○ Federated search and analytics
■ Searches and analytics can be activated from any source:
● On-site , through the cloud, third party
○ Data streaming
■ Collect and process data in real time
○ Scalable index
■ Collect and analyze data from thousands of sources

Splunk Compared to its Competitors
● What makes Splunk unique:
○ Any structure
■ Structured or unstructured data works, no work needed to be done from customer’s end
○ Any source
■ Take data from anywhere
● On-premises, cloud, IoT, point of sale, CRM, etc.
○ Any timescale
■ Act on data quickly
● Doesn't matter if its historical data or streaming data
○ Any action
■ Automate action based on set-playbook or AI driven decision making
■ Supports a broad range of users

Splunk vs DataDog
Capability Splunk DataDog
Data Type Supports multiple Does not support multiple
Customizable Dashboard No Yes
Real-time Analysis? Yes + visualization No
Stability Leader in industry Sometimes not
Use of tools Monitoring and analyzing
data in human-readable
format
Monitoring performance of
databases and servers

Splunk APM Tools.
● A report from G2 ranked different Application Performance Monitoring tools from user reviews.
○ Reviews sorted by recency, feedback, attribution, current user status and engagement with review.
○ Rating based on reviewers’ answers to likely to recommend question and dividing average in half.
● Splunk APM ranked #28 of 204 products.
○ Has mostly positive reviews from users but does not have many responses (18) in this particular survey.

Datadog APM Tools.
● Datadog ranked #3 in the same G2 survey.
○ Can be noted that the G2 ranking parameters weigh number of reviews quite highly.
○ Datadog having 221 with an average of 4.2
○ Splunk having 18 with an average of 4.4
Splunk Datadog

Business Analysis (Splunk)
- Global presence (over 75 countries)
- Cloud platforms offered (AWS, GCP)
- Covers a spectrum of customers B2C, B2B, B2G
- 2017 to 2019 average 33% YoY annual gross proﬁt
- Quarter ending July 31, 2021, 17.44% YoY ($0.4B)
- Asset growth 30% average in last 3 years
- Debt to Equity at 2.69
- Current Ratio at 2.37

Business Analysis (Datadog)
- Global presence (100+ countries)
- Cloud platforms offered (AWS, GCP, Azure)
- Covers a spectrum of customers B2G, B2B, B2C
- 2018 to 2020 average 80.3% YoY annual gross proﬁt
- Annual report 2021 not released yet
- Asset growth 82% in 2019-2020
- Debt to Equity at 0.77
- Current Ratio at 3.94

Earnings and Spending (Splunk)

Operating expenses compared (Splunk vs Datadog)

Acquisitions
● Splunk has made numerous acquisitions, especially after going public in 2012
● Some of the signiﬁcant ones include:
○ BugSense (September 2013)
■ Allows users to analyze machine data directly from mobile devices
○ Caspida (July 2015)
■ Adds behavioral analytics to Splunk’s security portfolio
■ Address more security threats faced by users
○ Rocana (October 2017)
■ Acquired technology and IP as well as many employees
● Further advanced machine data platform as well as machine learning capabilities
○ SignalFX (October 2019)
■ Adds real-time monitoring of cloud infrastructure

Conclusion
● Splunk is a leader in its industry
● It has unique technology and is constantly innovating and growing through development and
acquisitions
● Has strong ﬁnancial ﬁgures compared to competitors
● Has more capabilities and products than competitors such as DataDog
● However, as a long term investment option DataDog seems to be a solid choice

Works Cited
1. Fano, R. M. “The MAC System: A Progress Report.” The MAC System: A Progress Report, 1964,
www.bitsavers.org/pdf/mit/lcs/tr/MIT-LCS-TR-012.pdf.
2. Bokman, Alec, et al. “Five Facts: How Customer Analytics Boosts Corporate Performance.” Mckinsey.Com, 1 July
2014,
www.mckinsey.com/business-functions/marketing-and-sales/our-insights/five-facts-how-customer-analytics-boost
s-corporate-performance.
3. Capgemini. “The Big Data Payoff: Turning Big Data into Business Value.” Informatica, 2017,
www.capgemini.com/wp-content/uploads/2017/07/the_big_data_payoff-turning_big_data_into_business_value.p
df.
4. Accenture. “Big Success With Big Data.” Accenture.Com, 2014,
www.accenture.com/gb-en/_acnmedia/Accenture/Conversion-Assets/DotCom/Documents/Global/PDF/Industries
_14/Accenture-Big-Data-POV.pdf.

Works Cited cont.
● G2. “Compare Application Performance Monitoring (APM) Tools.” G2.Com, 2021,
www.g2.com/categories/application-performance-monitoring-apm.
● https://www.splunk.com/en_us/platform/platform-operations-overview.html#security
● https://www.educba.com/datadog-vs-splunk/
●

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8795: Big Data Infrastructure

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