Big Data Market – Global Scenario, Trends, Industry Analysis, Size, Share and Forecast, 2012-2018, a report by Transparency Market Research, projects the worldwide big data market to grow 41% annually from $6.3 billion in 2012 to $48.3 billion in 2018. The researcher estimates software and services segment to be worth 50% of the market in 2012. While software will remain a strong growth industry, big data growth will be dominated by the storage segment, which is projected to grow 45% annually over this period.
Big data analytics software solutions provider, Splunk (NASDAQ:SPLK), is seeing impressive market growth as well. In the second quarter results announced last week, the company reported revenue growth of 50% over the year to $66.9 million. The market was expecting revenues of $63 million for the quarter.
But during the quarter, losses widened due to increased spending across all cost groups. Research & development expenses grew 73% to $16.2 million, and sales & marketing expenses grew 61% to $44.6 million. Other general and administrative expenses also reported a steep 64% increase to $11.9 million. As a result, losses for the quarter grew to $0.13 per share compared with the $0.05 per share reported a year ago and the $0.11 per share projected by the market.
By segment, license sales grew 48% over the year to $43.2 million, and maintenance & services revenues grew 66% to $23.7 million.
For the current year, Splunk projected revenues of $275 million-$281 million with break-even operations. The company expects to end the current quarter with revenues of $69 million-$71 million and operating margins of 0% to a loss of 2.0%. Analysts were projecting revenues of $69.9 million for the quarter and $275.4 million for the year.
Splunk’s Growing Product Portfolio
Splunk continued to drive innovation and expand its product offerings during the quarter. Earlier this summer, it released a beta program for a new product, Hunk. Hunk is its analytics tool for Hadoop, and it allows for ad hoc analytics capabilities to historical big data residing in Hadoop that may be too difficult to move to alternate platforms. Splunk is happy with the initial results of the beta test.
Last month, it released the latest version of Splunk App for VMware, which increases visibility across virtualized environments. Through this app, VMware customers are able to analyze and correlate VMware data with logs, events, performance data, availability metrics and alerts. The app also comes with 25 standard reports to help with this analysis.
Over the past year, Splunk has also entered into several channel partnerships to expand its market reach. Earlier this year, it announced tie-ups with Cloudera and Hortonworks. Through these agreements, users will be able to use Splunk to collect, monitor, alert, and analyze machine data, and even use Hadoop for low-cost batch storage and additional batch analytics. Last month, it tied up with another big data analytics and data integration software provider, Pentaho Corporation, to enable business users to analyze machine data generated by websites, applications, servers, storage, network, mobile and other devices, including system sensors.
Splunk’s expanding product offerings have helped it to earn recognition across the globe. The company was named the Best Big Data Analytics by NetworkWorld Asia. Gartner also ranked it as the leader in Gartner Magic Quadrant for SIEM.
The market is also pleased with Splunk’s performance. The stock is trading at $56.34, with a market capitalization of $5.81 billion. It touched a 52-week high of $56.52 earlier last week. This marks impressive growth since the company listed at $17 in 2012.