The Splunk ROI
Splunk Enterprise customers typically achieve an ROI measured in weeks or months, sometimes even before deploying Splunk software into production. The source of ROI varies as much as how they use our software: keeping critical web services up and running, lowering operations costs, quickly investigating security incidents, providing valuable analytics and insights to business people, eliminating maintenance costs of legacy software...the list goes on.
Our customers typically achieve fast payback from their very first deployment and then expand their use. The ROI often comes from multiple business and financial benefits, such as:
- Reduce Costs: dramatically higher productivity, eliminate legacy software costs, reduce fraud and abuse and reduce SLA violation penalties
- Increase Revenue: dramatically reduce downtime of revenue-producing services and e-commerce sites, offer new services and reduce customer churn
- Better Support the Business: new real-time business insights for execs, marketing, sales and others; meet compliance mandates and better protect the business
Read Splunk ROI stories below.
ThreatMetrix credits the Splunk ability to handle large data volumes and automate key analytics as key to enabling over $1,000,000 in annual ROI.
A Telecommunications Company
After initially purchasing Splunk software to enhance visibility across their application infrastructure, this telecommunications company soon expanded their deployment to monitoring Quality of Service metrics, improving service delivery to their customers. The value they gained from Splunk extended well beyond their initial requirements and delivered an annual ROI exceeding $500,000.
A Large Online Travel Company
In the first twelve months using Splunk, the company improved response times by 300%, reduced downtime by 90% and retired over 200 servers, delivering a total annual ROI of $14 million.
Cars.com is using Splunk software for application management, business analytics and more. The company estimates ROI ranging from 200% to as much as 400%.
Ceryx Inc. achieved total ROI of more than 200% after implementing Splunk Enterprise to analyze machine data from its business IT services.
Bronto bought Splunk versus extending its Hadoop deployment and achieved a savings of over $300,000 in the first year.
With Splunk in place, we estimate a personnel savings of $630,000 annually. In addition, troubleshooting time has been reduced by approximately 70%.
Once our security teams grasped the value of Splunk, the analysis of operational data went from being a turtle in the security race to being a rabbit. We also saw an increase in annualized productivity of approximately $500,000 per year.
In addition to providing real-time notification, Splunk's reporting is also used by multiple areas of IT and the business. The impact of Splunk at HealthTrans has included an annual savings of over $700,000.
In the first year of using Splunk we reduced downtime by 30% and realized a 14x return on investment, delivering the company more than $1.8M in operational savings.
With Splunk in place, we have reduced outage frequency by about 15%, translating into an annual positive revenue protection impact of $1,200,000.
American University of Sharjah
American University of Sharjah (AUS) has used Splunk Enterprise to gain ROI through network bandwidth management, saving over $25,000 per month.
A Leading Financial Services Company
This Fortune 500 financial services company deployed Splunk to gain better visibility across its large distributed infrastructure, which generates millions of events per day. Splunk eliminated the manual task of wading through this data to troubleshoot issues. The company now proactively monitors for problems and when there is an issue it is fixed quickly. This significantly reduces downtime and saves the company $6M annually.
See more examples of the wide-ranging ROI gained by Splunk Enterprise customers:
Avoid Costly Escalations.
This top global money management firm is using Splunk software to troubleshoot customer issues. They dramatically reduced escalations beyond Tier 1 support. As a result they were able to redeploy 70 Tier 2 and higher support people to more important tasks such as development, saving $3 million over 2 years.
Less Downtime. Increase Revenues.
A major financial/credit information company decreased its average downtime per incident from 89 to 11 minutes (90% reduction) with Splunk Enteprise. For a service that generates $20,000 in revenue per minute the reduced downtime represents a savings of millions of dollars per year in extra revenue.
This top online retailer is using Splunk to proactively monitor their website, e-commerce and application infrastructure. With Splunk they eliminated downtime during peak shopping periods and avoided lost revenues of $300,000 per incident.
Business Analytics for the Bottom Line.
This top-five US wireless carrier uses Splunk software to optimize their call routing, "Lowest cost routing has direct impact on bottom line—saving hundreds of thousands of dollars per month." They also use Splunk Enterprise to analyze their CDRs (call detail records) and reconcile them with the charges they receive from their inter-carrier partners.
Eliminate Legacy Software Costs. Improve Operations.
One of the world's largest business publishers replaced their old server monitoring software with Splunk Enterprise and other open source software. This eliminated large annual software maintenance payments and lowered server management costs by 60%, saving $1.6 million/year.
Reduce Compliance Costs.
This large mutual fund is using Splunk Enterprise for compliance review. They were able to reduce staff dedicated to this area, and their Splunk software paid for itself in 60 days.
Avoid Legacy Software Upgrade Costs. Increase Productivity.
A major communications equipment manufacturer brought Splunk Enterprise in for security monitoring and investigations and avoided a $1.5M software license upgrade for their existing SIEM. In addition, they were able to reassign five full-time security analysts to other duties ($600,000 savings/year) and now monitor new data sources to identify previously unknown attacks.
Avoid Services. Faster Time to Market.
For a large services provider, "Splunk was up and running on commodity hardware in 2 weeks. Our incumbent product would have required an 8-month services engagement."
Higher Service Levels. Reduced Customer Churn.
This SaaS provider first used Splunk software to monitor/improve application performance. By further taking advantage of their machine data with Splunk Enterprise, they now proactively monitor for renewal risks. Today, account managers are notified when large customers are infrequently using the service. They can also provide new services to their customers, such as tracking email campaigns.
Real-time Intelligence. Run the Business Better.
This wireless service provider first deployed Splunk software to monitor for sophisticated security threats. Soon thereafter they used Splunk Enterprise to create real-time, executive-level dashboards showing new account activations by minute, region, service plan, handset type, etc. This brand new capability is being used by execs and marketing people to better promote and run the core business.
Eliminate Abuse. Increase the Bottom Line.
This large telecommunications provider initially used Splunk Enterprise to help monitor and manage their network and services. They are now using it to identify and eliminate service abusers (peer-to-peer/Torrent downloaders and roaming abusers). "Splunk is the one place we go to find our heaviest 'users' and 'abusers.' Within the first month the ROI we gained on fraud detection was enough to pay for Splunk."
Eliminate Software Costs. Free Up Hardware.
A top university switched to Splunk Enterprise to store, analyze and report on their IT (SMARTS) data. As a result, they saved $100,000 in relational database and reporting software costs and freed up server hardware.
Consolidate Tools. Eliminate Software Maintenance Costs.
This major energy utility eliminated six other tools by using Splunk software. The maintenance cost savings alone paid for Splunk Enterprise—a much more flexible solution that also helped them meet NERC and SOX compliance mandates and enhance security.
Days Not Months for Critical Web Analytics.
After trying for six months to use traditional web analytics software, this media company created the dashboards and reports needed to run their online media business in just a few days. Splunk Enterprise was able to track the digital assets on their web pages—video and audio program views, perform the required royalty accounting and help them better market their content.
End-to-End Visibility Links Infrastructure to Revenue Issues.
Splunk Enterprise helped this cable MSO identify content delivery network issues that were causing serious revenue losses. They discovered thousands of dropped video views before the revenue-producing advertisements could be served and determined the issue was network latency problems with their CDN supplier.
ROI in the Dev Stage.
For this major telco, Splunk Enterprise more than paid for itself by helping them identify problems in their dev/test environment before moving to production. "Splunk dashboards show trend visualizations and indicate when something will stop working, that's priceless."
Run the Business Better.
Before Splunk, VMware routinely had to restart over twenty servers one by one, over a six-hour period, to eliminate downtime for their critical software license provisioning system. Now with Splunk they identify the root cause in minutes, and can alert for this issue and restart a single server if necessary.
Blue Nile: If we solve a problem in one minute versus 30 minutes during peak hours—Splunk pays for itself.
WhitePages: Abuse traffic dilutes our ad rates and diminishes revenue. With Splunk we were able to eliminate 400,000 pages of abuse traffic daily.
Virtual Visibility. Reduce Downtime.
Splunk Enterprise was able to give this major insurance company a combined view of their physical and virtual environments, greatly reducing downtime.
Better Service. Reduce SLA Violation Payments.
This large network services provider can now monitor in real-time true SLA levels, provide reports to their customers and prove and avoid unjustified SLA violation claims/penalties.
Reduce Security Threats. Increase Productivity.
Using Splunk Enterprise in their CSIRT (computer security incident response team), Cisco now monitors information and events previously impossible to track and investigate—improving company security and security staff productivity.
Splunk has helped us identify spam profiles and led to a 98% overall reduction in spam.
Customer Support to a New Level.
Splunk has helped us recognize a 90% reduction in time taken to trace an email message.
Faster Resolution by Tier I Staff.
Splunk reduced our escalations by 90% and our problem resolution time by 67%"
CVS Caremark used a schema-based RDBMS-based Big 4 solution for PCI audits that proved inadequate. Splunk Enterprise provided the flexibility they needed, helping them to pass two PCI audits in a row.
Avoid Downtime in Physical and Virtual Environments.
As we are moving to an 85-90% virtualized infrastructure—Splunk can pull VM host data and correlate it with physical infrastructure data for a complete view of our environment. Splunk helps me to understand and solve issues before we face downtime.