Splunk Inc. upped the stakes in the cloud wars Tuesday, announcing big price cuts and a 100 percent availability pledge.
Splunk Cloud, which the company bills as a machine-data analytics service, captures information generated by assets such as servers, storage systems, apps and Web sites, and provides performance reports back to IT managers.
“Organizations cannot afford downtime on data platforms that monitor their applications, infrastructure and services,” said Splunk senior VP Guido Schroeder, in a statement.
Splunk’s 100 percent uptime guarantee is backed by financial penalties the company will pay if it is not able to meet that commitment.
Analysts said the pledge could push organizations that have been hesitant to move systems monitoring to the cloud to take the plunge.
“We’ve been seeing organizations start to move their mission-critical applications to the cloud, but many still see availability and uptime as a significant barrier,” said Dennis Callaghan, senior analyst at 451 Research.
“By guaranteeing 100 percent uptime in its SLA [Service-Level Agreement], Splunk Cloud should help ease some of the performance monitoring and visibility concerns associated with applications and infrastructure running in the cloud,” Callaghan said.
Beyond the uptime promise, Splunk announced a 33 percent price cut “made possible by increased operational efficiency.” Services start at $675 per month. Plans range up to 5TB/day with up to 10x data bursting.
The company, which runs its cloud on top of Amazon Web Services (AWS), also said it’s now offering free sandboxes where developers can test their applications.
Splunk offers 33% price cut, 100% uptime.
MindTouch, which offers a hosted product that allows companies to automate help desk and customer support functions, is using Splunk Cloud to monitor and analyze its system logs.
Founder and CEO Aaron Fulkerson said Splunk’s new zero-downtime SLA will let him breath easier. “Our products are mission-critical to our customers, and the 100 percent uptime delivered by Splunk Cloud helps us meet our customers’ expectations to be online all the time,” said Fulkerson, in a statement.
Splunk competes in an increasingly crowded field defined as machine-data analytics. Rivals include Elastic Search, New Relic, and Sumo Logic.
Investors did not welcome word of Splunk’s price cuts. Shares (NASD:SPLK) were off 3.26 percent, to $43.92, in mid-afternoon trading Tuesday.
Senior Writer Paul McDougall covers enterprise software and hardware for CruxialCIO. He also tracks cloud computing, Big Data, analytics and outsourcing. McDougall holds a bachelor’s degree in political science and economics from the University of British Columbia and a master’s degree in journalism from New York University. He lives in Manhattan.