Splunk Strengths, Domain Expertise, and Key Differentiators
In December 2021, Splunk announced results for its fiscal third quarter ended October 31, 2021. Cloud ARR was $1.11 billion, up 75% year-over-year. Total ARR was $2.83 billion, up 37% year-over-year. Cloud revenue was $243 million, up 68% year-over-year. Total revenues were $665 million, up 19% year-over-year. Splunk had 270 customers with cloud ARR greater than $1 million, up 96% year-over-year. Splunk had 635 customers with total ARR greater than $1 million, up 43% year-over-year. This was Splunk’s first billion-dollar cloud ARR quarter, with cloud accounting for a record 68% of software bookings. Cloud ARR grew by $130 million to more than $1.1 billion dollars, up 75% over the previous year. The demand environment and customer engagement remain strong, especially for existing customers managing their hybrid environments.
Splunk Recent Developments
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.
In June 2021, Splunk announced 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.
Also, 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.
Splunk Mergers and Acquisitions (M&A) Activities
In May 2021, Splunk acquired TruSTAR, a San Francisco-based cloud-native security company providing a data-centric intelligence platform. With TruSTAR, Splunk expands its existing security capabilities, giving customers the ability to access all their data to cut through complexity, drive highly effective detection, and respond to threats faster and in an autonomous fashion.
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 Business Flow, Splunk APM customers.
Ownership: - NASDAQ:SPLK
Number of Employees: 7000
Key Verticals: Aerospace and Defense, Automotive, Banking and Financial Services, Communication, Construction, Real Estate, Consumer Packaged Goods, Distribution, K28, Higher Education, Federal Government, State and Local Government, Public Safety, Healthcare, Life Insurance, P&C Insurance, Specialty Insurance, Leisure and Recreation, Hospitality, Life Sciences, Manufacturing, Media, Faith-Based Nonprofit, Youth and Elderly Care, Special Cause Nonprofit, Oil and Gas, Chemicals, Professional Services, Retail, Transportation, Utilities,
Splunk Key Enterprise and Cloud Applications
Splunk Business Flow, Splunk APM
Splunk Revenues, $M:
|Type/Year||2020||2021||YoY Growth, %|
|Total Revenues, $M||Subscribe||Subscribe||Subscribe|
|Enterprise Applications Revenues, $M||Subscribe||Subscribe||Subscribe|
|Cloud Applications Revenues, $M||Subscribe||Subscribe||Subscribe|
* Enterprise Applications Revenues = License + Support & Maintenance + SaaS
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.
Splunk Revenue Breakdown By Type, $M:
|Type||License||Prof. Services||Hardware||Support & Maintenance||SaaS||PaaS||IaaS||Other (Non Enterprise Application Revenues)||Total|
|% of Total Revenues||Subscribe||Subscribe||Subscribe||Subscribe||Subscribe||Subscribe||Subscribe||Subscribe||100%|
Splunk Enterprise Applications Revenues By Functional Markets, $M:
Splunk Enterprise Applications Revenues By Verticals, $M:
Splunk Revenues By Region, $M
|Region||% of Total Revenues||2021 Total Revenues, $M||2021 Enterprise Applications Revenues, $M||2021 Cloud Applications Revenues, $M|
Splunk Direct vs Indirect sales
|Region||Direct Sales||Indirect Sales||Total|
Splunk Customers - Breakdown by Geo, Size, Vertical and Product
No. of Splunk Customers: 22000
No. of Splunk Enterprise Applications Customers: x
No. of Splunk Cloud Customers: 317
No. of Splunk Cloud Subscribers: x
As of January 2021, Splunk has customers in over 130 countries, with more than 500 large enterprise-level clients from 355 in 2019, including over 90% of the Fortune 100 companies.
Splunk finished the third quarter of 2021 with 635 customers with total ARR greater than $1 million dollars, which was up 43% from a year ago. New and expansion customers included 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, and the University of Virginia.
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
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 licenses to sales of cloud subscriptions. This means Splunk will collect cash from customers over longer periods of time, causing a negative impact on operating cash flows. Their shift to cloud subscription agreements has also happened faster than expected, and their ability to predict revenue and margins has been limited. 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 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.
In October 2021, Splunk also announced the new Splunk Partnerverse Program to empower its network of over 2,200 partners to expand technical expertise, demonstrate core competencies with a new badge system, and showcase joint customer success. The Splunk Partnerverse Program will be broadly available in February 2022.
Splunk Cloud Infrastructure Insights
Subscribe to read more about:
- Splunk Public Cloud and Infrastructure (IaaS)
- Splunk Platform (PaaS)
- Splunk Application Delivery
- Splunk Private Cloud and Data Centers
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:https://www.appsruntheworld.com/About Us
Copyright © 2022, APPS RUN THE WORLD