Large data Service provider Splunk will be the next big event in the IT World

Beijing time December 24, local time 21st, Topeka Capital Markets (Topeka, CMC) analyst Brain White (Brian White) gave software companies Splunk shares "buy" rating. White set Splunk's target price at $38.25 per share.

In Mr White's view, Splunk is "an emerging software platform provider focused on translating the most common" Machine Data "into valuable real-time event analysis." White believes this is an exciting platform for a "big data" trend. To add, "Machine data" is the Web site, applications, servers, the Internet, mobile devices and all sensors, as well as RFID, all the time. Large data is often used to describe the large amount of unstructured and semi-structured data that a company creates, which can take too much time and money to download to a relational database for analysis.

"The event Analysis market" will be worth as much as $32 billion this year, White wrote. (Mr White cites market data from IDC, an investigative firm).

While chatting with consumers and software distributors, Wright gave Splunk a fairly high rating. In his eyes, the 9-year-old enterprise would be "the next big event in the IT World".

White said: "Google's log files (log files are used to record system action events of the record file or file set, operating system log files, database system has database system log files, etc.) is very famous." However, we believe that Splunk has the opportunity to turn its proprietary machine data engine technology into a force that can sweep the IT world and contend with existing domain technologies, such as Enterprise analytics, related databases, security, and other technologies. Splunk was founded in 2003, and co-founder includes Eric Swan (Erik Swan), Rob Dass (Rob Das) and Michael Bam (Michael Baum). Splunk from the words "spelunking" (meaning cave exploration), means that Splunk's machine data software search function is very powerful. Splunk proprietary machine Data engine technology is the core of platform services, which can transform machine data into consumer purchase patterns and potential security risks. Instant event analysis of website service level, employee productivity, network utilization, etc. Compared to traditional relational databases, enterprise applications, IT management software, and security software, Splunk can better support unstructured data (a generic label that describes all enterprise information that is not in the database). We believe that Splunk's biggest competitive threat will come from startup mode. In the course of the investigation, we found that consumers start using Splunk as a single use case, and then soon discover that it has new and different uses that they never thought of. ”

White also likes the way splunk pricing. It is reported that Splunk let customers free use of the company's flagship products Splunk Enterprise 60 days, and then ask for paid services. The forecast data show that Splunk's average ASP is close to 35,000 dollars.

White claims that Splunk's revenue this year will be 193.9 million U.S. dollars, loss of 3 cents per share. In addition, he has expressed his views on splunk recent spending and long-term profits, as follows: In the third quarter of 2013, Splunk's annual revenue growth will be $208 million. The company's near-term revenue target is 1 billion dollars. When it comes to profits, we think Splunk will continue to run the entire company in a break-even state and return the profits to business, with the aim of capitalizing on greater growth opportunities. In other words, Splunk's long-term financial model includes 85% to 95% of total profit and 25% to 30% operating profit.

(Responsible editor: Schpeppen)