Why Splunk Went on a Shopping Spree in the Last Year
Big data software provider @Splunk (NASDAQ: SPLK) has made five acquisitions since the beginning of 2017. Mega-mergers and acquisitions get a lot of attention these days, but many of them are made by a struggling company trying to shore up its operations or buy its way to growth (for example, @AT&T’s pickup of @TimeWarner).
Splunk’s strategy is different: It’s all about acquiring other fast-growing companies like itself that complement its strategy.
New partners, complementary markets
As the number of electronic devices continues to increase by the billions every year, the amount of data floating around out there increases even more. For many enterprises, the data its machines, systems, and websites generate is unorganized and unusable. Splunk’s cloud-based software changes that, organizing it into a format that’s usable and providing insight into what’s happening. That capability is a much-needed one in the business world, and it has helped Splunk double its sales many times over the last few years.
DATA BY YCHARTS.
Splunk isn’t alone in its mission to help demystify big data — other software companies offer a similar service. The Splunk platform, though, is becoming a multi-purpose one, leveraging its capabilities to decipher mass quantities of information into specific functions. One of the ways the company is trying to extend its reach is through strategic acquisitions. It’s been a busy year-and-a-half stretch for the San Francisco-based company as it has scooped up five of its smaller peers.