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Investments in big data can resort to high ROI: study

Veronica C. Silva | Sept. 6, 2013
Cross industry case studies reveal consistent ROI results

A new study by Splunk Inc. reveals that enterprises that invest in big data can reap rewards of up to 500 percent return on investment (ROI) and over US$14 million in annual savings. 

The study documented case studies of over a dozen Splunk customers. Splunk offers solutions that can help enterprises collect, index and harness big data coming from different sources – from websites, applications, servers, networks, sensors and mobile devices

The study was conducted by Enterprise Management Associates (EMA) for Splunk and involved Splunk customers in different industries – telecommunications, financial services and travel, to name a few.  

Splunk said the study results are consistent with ROI already achieved in the first year of deployment. Jim Frey, vice president of research, EMA, said ROI can reach up to 200 percent or more. 

“In our experience, it is uncommon to see such consistent enterprise software ROI across such a range of industries and use cases. Splunk customers, however, readily pointed to both hard and soft ROI, which is a testament to the impact a machine data platform like Splunk Enterprise can make in organisations large and small,” said Frey. 

Splunk cited customer case studies where companies either saved or increased profits after using the Splunk solutions., an online destination for car shoppers, is one example. Splunk said the company behind the website achieved a 200 percent ROI in less than a year by saving nearly US$250,000. uses Splunk Enterprise to automate data collection, monitoring and analytics across the organisation. 

Another company, Cricket Communications, realised an ROI of more than 500 percent and annual savings of US$1.3 billion after deploying Splunk Enterprise. 

A customer in the healthcare management industry, HealthTrans, a large pharmacy benefits provider in the US, uses the Splunk software to process online claims. With the software, the company was able to reduce time to resolve processing from hours to five minutes. Splunk said HealthTrans saves U$280,000 annually after using Splunk software.

Splunk said an unnamed global online travel company achieved an ROI of US$14 million in the first year, or 25 times its investment in the Splunk software. The travel company uses the Splunk solution to “index and monitor hundreds of thousands of data sources for root cause analysis, performance, digital intelligence and business analytics.” 

Meanwhile, another unnamed financial services company reached an ROI of US$ million annually. The company uses the Splunk Enterprise to monitor the performance of its Web application servers. With the help of the Splunk solution, the company’s IT team was able to reduce monthly outage time from 70 minutes to 10 – 15 minutes, and reduce the time to repair from 50 to 60 minutes to only 20 minutes. Splunk said these results have helped the company increase revenue and profits. 


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