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LinkedIn is a gold mine for due diligence on cloud stocks like $SPLK and $ESTC. Today, I’ll show you how I used a sneaky 
LinkedIn hack to discover who is replacing Splunk, why they are replacing it and who is stealing all their customers......
LinkedIn hack to discover who is replacing Splunk, why they are replacing it and who is stealing all their customers......
First, you can do free searches on LinkedIn to find people mentioning certain keywords in their profile. To get precise results, you need to do exact match searches with quotes. For example, here is my search for profiles mentioning “replace splunk”. Here is what I found...
1/ Fidelity Investments is replacing $SPLK with open source tech like Kafka and $ESTC for the logging use case. This person cites Splunk as costing “millions of dollars each year”. $ESTC also had better machine learning capabilities.
2/ FINRA replaced Splunk with $ESTC which not only reduced costs, but also reduced response times.
3/ CapitalOne also replaced $SPLK with the ELK $ESTC Stack for the monitoring/observability use case. ELK = Elasticsearch products.
4/ The University of Florida replaced $SPLK with the ELK $ESTC Stack for the logging use case. Again, reducing costs was the rationale.
6/ Bechtel replaced $SPLK with $ESTC for the logging/analytics use case. Again to reduce costs but also to improve data capacity.
7/ Michigan State University replace $SPLK with Humio (acquired by $CRWD) for the logging use case. This acquisition could mean that $CRWD, a Splunk customer might eventually move away as well.
8/ Finally, CERN replaced $SPLK years ago with open source alternatives like Redis and Grafana. Because it was “growing too expensive”
It’s clear that $SPLK is losing against $ESTC b/c of a poor pricing structure (ie pricing per Gb vs per node) and worse performance in some cases. The trend in mentions in job openings also show $SPLK gradually losing market share against $ESTC and Grafana in the past 2 years.
Fidelity, one of the examples, seems to have churned this quarter, as detected by the @RevealeraData vendor intelligence product. Below were other *possible* Splunk logo churn we detected this Q based on job opening mentions and other proprietary data.
So, with just 1 simple search, we learned some big name companies replaced $SPLK due to high costs and performance. And most are switching to $ESTC. This is not a research report, but it’s a great insight into the competitive positioning of Splunk and Elastic.
I no longer own $SPLK and might own $ESTC. If you found this LinkedIn hack useful, would love a RT @Crussian17 @skaushi @hhhypergrowth @HoosierInvestor @mukund @EricJhonsa @RihardJarc @cap_zay @lfg_cap @IrnestKaplan @Logos_LP @BucknSF @LibertyRPF @adventuresinfi @S_curvecap
