Splunk Inc (NASDAQ:SPLK) just announced plans to cost of its cloud service by 33% as well as offer 100% guaranteed uptime, free developer sandboxes, and higher-scale service plans. The majority of Splunk’s over 7,400 customers use the company’s information tech operations oriented data analysis platform on the premises.
Splunk’s new price cuts
Last year, Splunk was launched to speed up access to Amazon Web Services. It is not surprising the cloud service company slashed prices as AWS cut back its storage and compute prices over 40 times within the past six years. The e-tail giant’s most significant price cut happened in March, just a day after Google announced it’s plan to cut the price 32% on its compute engine service. Amazon then responded with a 51% price cut on Simple Storage Service and 38% price cut on M3 general-purpose server instances.
Gates Capital Management's ECF Value Funds have a fantastic track record. The funds (full-name Excess Cash Flow Value Funds), which invest in an event-driven equity and credit strategy, have produced a 12.6% annualised return over the past 26 years. The funds added 7.7% overall in the second half of 2022, outperforming the 3.4% return for Read More
Splunk attributed AWS price cuts and the company’s own improved operational efficiencies for the price cuts. The Splunk Cloud 100% uptime guarantee is also back behind financial penalties should service be disrupted. MindTouch (a Splunk customer) feels this guarantee is re-assuring. The company’s chief executive officer Aaron Fulkerson recently gave a phone interview to Information Week where he discussed his thoughts on Splunk’s guarantee. He believes it is not a difficult problem to set up cloud infrastructure to guarantee uptime and he is confident this is the real deal.
Splunk’s connection to MindTouch
MindTouch is a company that captures and hosts help-desks as well as offer support for customers which include salesforce.com, inc. (NYSE:CRM), Intel Corporation (NASDAQ:INTC), Intuit Inc. (NASDAQ:INTU), and SAP SE (ADR) (NYSE:SAP), SuccessFactors, Inc. (NYSE:SFSF). The company uses MindTouch to report and monitor it’s services, the latter of which is also hosted on AWS. MindTouch also offers a 99.9% uptime guarantee all depending on customer’s licensing level which nearly matches Splunk’s guarantee.
Splunk Cloud will also analyze capture up to 5 terabytes of data a day. Companies can also opt for plans that include higher amounts of terabytes ranging from 10 to 100.