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Some

Thoughts on the Freemium Model


Steve Sommer CMO Splunk Inc. May 10, 2012

A New Approach
Spelunking:
to explore underground caves

Splunking:
to explore machine data

Copyright 2011, Splunk Inc.

Listen to your data.

Splunk: The Engine for Machine Data


Collect massive machine data from any source in real-Lme
GPS, RFID, Hypervisor, Web Servers, Email, Messaging, Clickstreams, Mobile, Telephony, IVR, Databases, Sensors, Telematics, Storage, Servers, Security devices, Desktops, CDRs
Ad hoc search

Integrated, end-to-end capabiliLes


Add knowledge Monitor and alert Custom Report and dashboards analyze

Splunk storage
3 Listen to your data.

Copyright 2011, Splunk Inc.

Value From Department to Enterprise


Enterprise Deployment

>
Expansion

Workgroup Free Download

>
> More sites > More geographies > More data sources > More data volume
4

>
Initial User

>
> Specific use case > Specific users

! ! ! !

Enterprise standard Large number of users Many different use cases Many different users

Copyright 2011, Splunk Inc.

Listen to your data.

Splunk Delivers Value Across the OrganizaLon


ApplicaLon Development & Management IT OperaLons Security & Compliance Web Intelligence Business AnalyLcs

Small Data. Big Data. Huge Data.


Copyright 2011, Splunk Inc. 5 Listen to your data.

3,700+ Customers in 75 Countries


Financial Services & Insurance Cloud and Online Services

Over Half the Fortune 100


Retail

Technology Cloud and Online Services

Cloud and Online Services

Cloud and Online Services

Government Cloud and Online Services

Healthcare Cloud and Online Services

Manufacturing Cloud and Online Services

Media & Entertainment Cloud and Online Services

Energy and Utilities Cloud and Online Services

Education Cloud and Online Services

Telecommunications Cloud and Online Services

Travel and Leisure Cloud and Online Services

Copyright 2011, Splunk Inc.

Listen to your data.

Some Thoughts on the Freemium Model

What Is Your Freemium Oer?


Trial? Perpetual? ! Proprietary or open source? ! Highly valuable as a soluLon to a recognized problem? ! Viewed as a crippled enterprise version? ! How do you dene (delineate) Free vs. Premium?
!

Copyright 2011, Splunk Inc.

Listen to your data.

Splunk Free vs. Splunk Enterprise


Daily data indexing rates beyond 500 MB ! FuncLonality:
!
AlerLng AuthenLcaLon and role-based access controls Distributed search Single sign-on A few others

Copyright 2011, Splunk Inc.

Listen to your data.

Copyright 2011, Splunk Inc.

10

Listen to your data.

What Is the Freemium Experience?


Overall posiLve / compelling experience? ! Truly free to the user? ! Require Hardware? Services? Training? Support? ! Other barriers to adopLon?
!

Copyright 2011, Splunk Inc.

11

Listen to your data.

What Are the AlternaLves?


Other free or open source opLons? ! Manual processes? ! CompeLLve response?
!

Copyright 2011, Splunk Inc.

12

Listen to your data.

Freemium Economics
Can you reach your target users cost-eecLvely? ! Cost to capture free users? ! Cost to support free users? Leverage a community? ! Whats the entry pricing point (low or high hurdle?) ! Cost to upsell/upgrade free users? ! Conversion raLos? ! LifeLme value of a paid customer?
!
Copyright 2011, Splunk Inc. 13 Listen to your data.

Mission

Make machine data accessible, usable and valuable to everyone.

Copyright 2011, Splunk Inc.

14

Listen to your data.

Splunk

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