Splunk reported $605.7 million in quarterly revenue in August, up 23% year over year, while cloud revenue, at $217.4 million, was up 73%. Other enterprise software companies, such as Adobe, Autodesk and Microsoft have gone through similar adjustments. The CEO transition is "an additional concern" the company is dealing with, on top of risks such as increasing competition from public cloud providers, entry into the observability market and the ongoing business model evolution, KeyBanc analysts led by Michael Turits, who have the equivalent of a hold rating on Splunk stock, wrote in a note distributed to clients.ĭuring Merritt's tenure Splunk has been shifting more toward providing its software as a cloud service, which has impacted revenue and operating margins. Smith is a former chief financial officer of Salesforce who joined Splunk's board in 2011. Merritt joined Splunk as a senior vice president in 2014 after stints at Cisco, PeopleSoft and SAP, and in 2015 he replaced Godfrey Sullivan as Splunk's CEO, who had taken the company public in 2012. The leadership change creates more uncertainty for a company working to become viewed more like a cloud company than a seller of more traditional on-premises software. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower The deal is expected to close in the latter half of 2020, subject to customary closing conditions and regulatory reviews.Best Debt Consolidation Loans for Bad Credit And so what’s happening on one instance is not as interesting as what’s happening across the collection of instances since performance matters across an entire service.” “Today’s architectures are more and more distributed - you have VMs, you have containers, you have distributed architectures and distributed databases that might be running on tens or hundreds of nodes. There’s a lot of monitoring that you can do locally to understand if instances fail,” Rau told The New Stack in a 2018 podcast interview. “In a traditional enterprise architecture, you have a monolith and it’s running on a single server. These technologies, in Splunk’s view, present new challenges for IT professionals and developers, in terms of ensuring high availability and seamless operations. IT analyst firm Garter has predicted that by 2022, more than 75% of organizations will be running containerized applications in production. The purchase is in direct response to the rapidly growing ecosystem of Docker, Kubernetes, serverless and other cloud native technologies. “As the world continues to move towards complex, cloud-first architectures, Splunk and SignalFx is the new approach needed to monitor and observe cloud native infrastructure and applications in real-time, whether via logs, metrics or tracing,” added Karthik Rau, SignalFX Founder and CEO, in a statement. A combined Splunk and SignalFx data platform would offer a single interface to monitor and observe all the data these systems produce in real-time, according to Splunk. “Data fuels the modern business, and the acquisition of SignalFx squarely puts Splunk in position as a leader in monitoring and observability at massive scale,” said Doug Merritt, Splunk president and CEO, in a statement. Splunk started off offering a popular appliance for searching logs for performance issues, though expanded into a full range of APM services, including those for AIOps and IT Operations Management (ITOM). SignalFx offers a hosted service that provides real-time monitoring and metrics that can be applied to the emerging markets of cloud infrastructure and microservices, as well as for regular applications. Looking to expand into the difficult field of microservices observability, application performance management (APM) software provider Splunk is acquiring SignalFX, for approximately $1.05 billion, according to both companies.
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