No. of Recommendations: 24
It’s not good to have your customers afraid of your pricing and feeling out of control.

5 years and 3 companies ago we looked hard at Splunk and chose Elastic primarily due to Splunk's volume-based pricing.

My current team is now looking at Splunk, but thinking about using Alteryx as a pre-filter to reduce the amount of data fed into Splunk. Splunk really is a better solution for us now than Elastic, but the pricing model is death.

For instance, here's pricing of Splunk Enterprise:

Yes, the price per GB goes down as you purchase more. But, you have to do the multiplication, which their chart doesn't show. So for 1GB/day you pay $150 per GB per month. And for 100GB/pay you pay $50 per GB per month, which equates to $5,000 per month! Perpetual license for the 100GB/day runs a cool $1.5 Million - and you still have to buy support every year to keep that active!

Now, apparently Splunk is stopping perpetual licensing and only doing term licensing.

And, note that these are max limits. It's not pooled per month or anything. If you go over you get warnings, and then either get cut off or you get a bill.

Oh, and this is hosting Splunk yourself. If you want to use the SaaS/Cloud version, that costs you more. Interactive tool here:

Now, to be fair, this is the cost for indexing the data. Once it's indexed you can run as many queries on it as you want for no additional cost. But, to give you an idea of how much data companies have, consider that the free version lets you run 1/2GB/day forever.

For Splunk's traditional use case - looking at server logs, this pricing really is death since you have lots of new data every hour and don't care about data older than a few months. For other uses, like my team's IoT data, it isn't quite as bad since we care about old data very much.

Splunk doesn't seem to understand that changing their pricing will result in LOTS more companies using their product, and should easily more than compensate for the lower profit per customer. That they understand their pricing is hurting them is a good first step, but it's been going on for close to half a decade at least, so I guess I'm not optimistic that a change is coming soon.

One guess would be that an announced change in pricing would give a nice bump to the stock. That's not something on which I'm ready to bet on at this point in time.
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