Splunk Named Top-Tier Software Vendor by APPS RUN THE WORLD in the APPS and CLOUD TOP 500 Market Report

Splunk Strengths, Domain Expertise, and Key Differentiators

Splunk provides solutions that use data from digital systems to help organizations identify opportunities for optimization and innovation and to keep those systems secure and performing effectively. This class of data is growing significantly as a direct result of the prevalence and importance of digital systems used by today’s organizations. Decades of investment in digital transformation have integrated the hardware and software that comprise digital systems into every aspect of how modern organizations operate.

In July 2023, Splunk introduced Splunk Edge Hub, designed to streamline the ingestion and analysis of data originating from sensors, IoT devices, and industrial equipment. This innovative offering is positioned to empower organizations by facilitating advanced monitoring, investigation, and response capabilities, ultimately fostering digital resilience across their systems.

Splunk Edge Hub, in synergy with the broader Splunk platform, equips customers with multifaceted functionalities. Organizations can leverage this solution to monitor environmental conditions, apply predictive analytics to detect anomalies in manufacturing processes, attain comprehensive visibility across both IT and OT environments, and engineer customized solutions. The latter is particularly significant for historically challenging environments, such as transportation, oil and gas, and supply chain sectors, among others.

Splunk Edge Hub serves as a testament to Splunk's commitment to providing cutting-edge solutions that transcend traditional data extraction challenges. By addressing the complexities inherent in diverse environments, Splunk Edge Hub empowers organizations to extract actionable insights, contributing to enhanced operational efficiency and informed decision-making across various industries.

Splunk Security Includes Splunk Enterprise Security (“SIEM”), Splunk Security Orchestration, Automation and Response, Splunk User Behavior Analytics, Splunk Attack Analyzer and Splunk Mission Control. Splunk Security helps security leaders fortify their organization’s digital resilience by effectively mitigating cyber risk and meeting compliance requirements. Splunk Observability Includes Splunk IT Service Intelligence, and Splunk Observability Cloud, which provides fully integrated capabilities for Splunk Application Performance Monitoring (“APM”), Splunk Infrastructure Monitoring, Splunk Real User Monitoring (“RUM”), and Splunk Synthetic Monitoring. Splunk Observability provides complete visibility across the full stack of infrastructure, applications and the digital customer experience, so customers maintain continuous health, reliability and performance of their business and the applications and infrastructure that it runs on. These products are powered by the Splunk platform - an extensible, configurable platform that supports expansive data collection and instrumentation, at scale. The Splunk platform provides a wide range of interfaces for administrators, data engineers, analysts, and end users for data preparation, investigation, and visualization. Organizations can also execute unified search queries across datasets in multiple Splunk instances - on-premise and in the cloud - as well as third party data stores. Extensive ML capabilities, including out-of-the-box algorithms optimized for common data types, deliver more accurate and actionable insights. Pre-built ML algorithms and model development capabilities allow data scientists to develop and deploy customized algorithms and models to their custom security and observability use cases.

One of Splunk's customers ManpowerGroup chose the Splunk Cloud Platform to deliver insights 60x faster and ramp up global security. With Splunk, ManpowerGroup has instant access to data that supports better decision-making, keeping the company resilient as it works to find meaningful employment opportunities for associates around the globe. With Splunk Cloud Platform, the team at ManpowerGroup identifies incidents before they happen. On another hand Carrefour responds to security threats 3x faster with Splunk Cloud Platform, better protects its business, and improves customer experience with actionable insights into system performance and faster security response times.

Splunk Mission Control as part of its security offers is an integrated security operations application that lets triage, investigate, and respond to security incidents from a cloud-based console accessible from Splunk Enterprise Security Cloud. Data from Splunk Enterprise Security Cloud appears in the app as incidents.

Splunk Recent Developments

In July 2023, Splunk introduced Splunk AI, a suite of innovative AI-powered solutions aimed at augmenting its unified security and observability platform. Drawing upon its extensive heritage in data visibility and a history of pioneering advancements in AI and machine learning (ML), Splunk remains committed to elevating the customer experience. Through its AI capabilities tailored for security and observability, Splunk AI facilitates the delivery of domain-specific insights, enhancing human decision-making and bolstering threat response through intuitive and assistive experiences.

In early March 2023, Splunk released its latest annual report, concluding the fiscal year with a notable total revenue of $3.654 billion, reflecting a robust 37% year-over-year growth. The total Annual Recurring Revenue (ARR) stood at $3.674 billion, marking an 18% increase compared to the previous year. Notably, Cloud revenue experienced significant growth, reaching $1.457 billion, reflecting an impressive 54% year-over-year increase.

Simultaneously, Splunk commenced the year 2023 with a series of strategic leadership changes. Brian Roberts assumed the role of Chief Financial Officer, followed by the appointment of Min Wang as Chief Technology Officer and Toni Pavlovich as Chief Customer Officer. These key leadership additions bring a wealth of expertise and diverse perspectives, potentially infusing the company with innovative ideas to propel its future endeavors in the coming year.

In October 2021, Splunk announced a series of new product innovations designed to help organizations securely embrace digital transformation by providing the security visibility needed to accelerate time to detection, investigation, and response. Many security products are not designed to integrate with one another, which leads to blind spots that attackers can exploit. To address these challenges, Splunk provides an extensive cloud-delivered SOC platform. During the same period, Splunk announced the Government Logging Modernization Program, which is designed to help Federal government agencies meet the requirements of cyber incident response per Executive Order and guidance included in OMB M-21-31 under the Biden Administration.

In June 2021, Splunk unveiled the new Splunk Security Cloud, the only data-centric modern security operations platform that delivers enterprise-grade advanced security analytics, automated security operations, and integrated threat intelligence with an open ecosystem. With Splunk Security Cloud, teams can secure and manage multi-cloud deployments while remaining agile to adapt to ever-evolving threats.

Splunk Mergers and Acquisitions (M&A) Activities

In September 2023, Cisco disclosed a definitive agreement outlining its intention to acquire Splunk at a valuation of $157 per share in cash, translating to an equity value of approximately $28 billion. This strategic move unites two prominent industry leaders, each with complementary strengths in AI, security, and observability. The synergies arising from this acquisition aim to unlock the intrinsic value of data, fostering enhanced security measures and digital resilience across organizations of varying scales.

Splunk Customers in ARTW Customer Database

Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying Splunk applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of Splunk and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified Splunk Cloud Platform, Splunk Enterprise, Splunk Enterprise Security, Splunk SOAR, Splunk Business Flow, Splunk APM customers.

Splunk Key Enterprise and Cloud Applications

Splunk Cloud Platform, Splunk Enterprise, Splunk Enterprise Security, Splunk SOAR, Splunk Business Flow, Splunk APM

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Splunk Direct vs Indirect sales

Splunk Customers - Breakdown by Geo, Size, Vertical and Product

List of Verified Splunk Customers

No. of Splunk Customers: 22000

No. of Splunk Enterprise Applications Customers: x

No. of Splunk Cloud Customers: x

No. of Splunk Cloud Subscribers: x

As of January 2022, Splunk boasts a substantial global presence, catering to over 22,000 customers across more than 130 countries. Notably, its solutions have been strategically deployed by over 95 Fortune 100 companies, showcasing Splunk's significant impact on the enterprise landscape. The clientele served by Splunk spans diverse entities, encompassing enterprises, educational institutions, and government entities. Splunk's current customer base is notably diversified across various industry verticals, including but not limited to education, financial services, government, healthcare/pharmaceuticals, industrials/manufacturing, media/entertainment, retail/ecommerce, technology, and telecommunications. Recognizable among its esteemed customers are Alamo Group Inc., ATB Financial, Bambuser, Bendigo and Adelaide Bank, Blue Yonder, CAINZ Corporation, Commonwealth Bank Australia, Duck Creek Technologies, LendingClub, Veolia, the University of Nebraska, the University of Virginia, and numerous others.

In the Fourth Quarter of 2023, Splunk achieved significant milestones, culminating in 790 customers with total Annual Recurring Revenue (ARR) exceeding $1 million. This marked a substantial 115% year-over-year increase, underscoring Splunk's sustained growth and resonance within the market.

Splunk Market Opportunities, M&A and Geo Expansions

The key elements of Splunk’s growth strategy are their cloud-first platform and solutions. They have reached a key milestone where cloud services represent the majority of their total software bookings. Most importantly, the rate at which new features and capabilities are delivered to and used by customers is accelerated when using cloud services offerings. Given customers’ success adopting cloud services offerings, Splunk will continue to invest heavily in differentiated cloud services offerings delivered through a cloud-optimized go-to-market and support model. Splunk expects cloud services offerings will continue to be an important source of growth for Splunk and their customers. Splunk has also had success in global expansion, as evidenced by an increased mix of revenues outside of the United States, and they continue to see this as a significant growth opportunity.

Splunk Risks and Challenges

Over the past 3 years, Splunk has been going through a business model shift that other firms, such as Adobe and Autodesk, have gone through when migrating their core business from on-premise software license to a SaaS subscription model. Historically, Splunk has generated a majority of revenues from sales of licenses, whereby they generally receive the license fee up front. However, their revenue mix has shifted from sales of perpetual software licenses to sales of cloud subscriptions. Acceleration of Splunk's Cloud business as a growing contributor to software bookings has led to a deceleration in reported revenue in the short term and the faster than expected shift to cloud subscription agreements has led to uneven financial performance about a year ago. However, with the new CEO, Gary Steele joining in April 2022, the company has turned the corner on this transition and has generated impressive free cash flow in the most recent fiscal year and revenue growth has come back in the most recent fiscal year. Splunk’s industry is also evolving rapidly and becoming increasingly competitive. This puts Splunk in competition with a variety of large CSPs and software vendors, as well as smaller specialized companies, open-source projects, and custom development efforts to provide solutions in the specific markets Splunk addresses.

Splunk Ecosystem, Partners, Resellers and SI

Splunk sells its offerings directly through field sales, inside sales, and indirectly through different routes to market with a community of partners. These partners include leading, global service integrators, managed services partners, and resellers. Its field sales teams are organized geographically across the Americas, Europe, Middle East and Africa, and Asia Pacific. Splunk also has a dedicated sales team focused on government customers, which includes the United States federal, state, and local government entities.

In July 2023, Splunk and Microsoft solidified a strategic partnership aimed at elevating Splunk's enterprise security and observability offerings by leveraging the robust capabilities of Microsoft Azure. This collaboration extends further as Splunk solutions will now be accessible for procurement through the Microsoft Azure Marketplace, marking a significant milestone in their joint initiatives.

Within this collaborative framework, Microsoft and Splunk are committed to co-developing a distinctive product offering, harnessing the power of Microsoft Azure to enhance Splunk's suite of cloud products. This strategic alignment is poised to empower mutual customers, providing them with the confidence to innovate while seamlessly navigating the landscape of migration, modernization, and expansion. The resulting end-to-end cloud and hybrid visibility at scale will position joint customers for sustained growth and operational excellence. This partnership underscores both companies' dedication to delivering comprehensive solutions that address the evolving needs of enterprises in the digital era.

Splunk maintains an extensive partner ecosystem through the Splunk Partner + Program. Splunk’s partners assist them by selling, servicing, or building solutions on top of the Splunk Platform. Partners building on top of Splunk create applications, add-ons, and connectors that allow customers to leverage broader sets of data in Splunk, extending Splunk’s overall market reach and total addressable market. Splunk also has a well-established global network of distribution and resell partners.

The Splunk Technology Alliance Partner Program enables and supports an ecosystem of over 750 software vendors who build integrations between Splunk and their products. Some also leverage the Splunk Platform to build data-centric solutions for their customers. Splunk provides tools and documentation to help partners build integrations and solutions.

Splunk Cloud Infrastructure Insights

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Research Methodology

Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.

Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).

For additional information on our methodologies, here's the link: