The term Artificial Intelligence has been in our lexicon for a while now and it’ future is hard to underestimate. Today, however, we are going to focus on a different bread of intelligence and a company that has been a quiet success story.
Operational Intelligence: Cyber Security and Much More
Imagine your title is Chief of Cyber Security for The United States Department of State. Everyone in the world is trying to break into your highly classified servers 24/7 using world-class hackers and their most devious schemes.
Your job is not just to patch security breaches but also to prevent them from gaining entry. Billions of data bits are flying around your network every day. The challenge before you is to determine which ones represent a cyber security risk. So much data is out there needs to be absorbed and organized. This is where Operational Intelligence steps in identifying aberrant data patterns at the earliest moment.
The explosion of data is threatening to cripple the economy. We are talking about data from everyone and from everywhere: personal, business, government, social media, entertainment etc. Every mobile phone call, every tweet, every online purchase, every retail transaction creates more data. The much talked about “Internet of Things”, insures this volume will keep growing exponentially. This is what “big data” is all about. The trick is organizing the information and turning it into bits of actionable information.
Getting Traction: Cyber Security Is Key
Splunk is the fastest growing company in the Operational Intelligence market place.
Cyber Security is basically how Splunk got into business. Today, it is 40% of company and the fastest growing segment. It would be far higher piece of the pie were it not for the phenomenon of “Unintended Use Cases”. Here is a quick explanation.
Once the Splunk platform is downloaded, Cyber Security customers discover many unexpected practical uses that lead to purchases of additional licenses. That leads to more and more business in areas like business analytics, corporate infrastructure management as well as general analytics. Recently, management stated that 30% of their new business resulted from Unintended Use Cases.
Critical Elements For Success Are Present
Splunk security solutions offer leading edge technology providing the capability to deliver a real-time detection. Investments in these key technologies provide significant competitive advantage. Specifically, technologies are designed to support large volumes of machine data on a massive scale with minimal overhead.
Splunk competes against a number of different companies many of whom are much larger. The list includes BMC Software, CA Technologies, HP, IBM, Intel, Microsoft, Dell Software and VMware IBM and Oracle. The strength of Splunks competitiveness is illustrated by their customer list that includes a “who’s who list of global corporations and government entities.
Splunk innovations and marketing strategy have opened the door to over 11,000 total customers including more than 79 Fortune 100 companies, various military and agencies of the United States government.
Splunk: Breakdown of The Business
Splunk divides it business into two channels. Sales of software lead to demand for maintenance and service to support its product offerings. Software is targeted to a variety of verticals including financial services, government, healthcare, industrial, media/entertainment, and retail including ecommerce, technology and telecommunications. More than 60% of Splunk’s business comes from software.
Pricing Based on Usage
Splunk pricing is based on a downward sliding scale of actual usage starting as little as 1 Gigabit to over 100 Gigabits of data per day. In other words, there are no preset amounts, the more you use the more you pay.
Core Products include Splunk Enterprise, Splunk Cloud and Splunk Light and Hunk. Each of these products performs the essential function of dramatically reducing search and assembly of information, reducing costs by using less hardware, detecting data anomalies and producing high resolution data visualizations.
Zero to 60 in 3.5 Seconds
As the current decade began, revenues stood at a paltry $18 million. The current year will see revenues coming in near the $900 million level. This would make Splunk the fastest to reach $500 million and one of the very few companies to consistently achieve 50% annual growth. Indeed, the wind has been at the company’s back and Splunk is at the right place at the right time.
Will the silly sounding company named Splunk continue to rocket forward? Technology is a treacherous business with the carcasses of companies littering the back alleys of Silicon Valley. One thing is absolutely certain. The growth of data is accelerating and this is the key driver of demand.
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