Cisco’s planned acquisition of Splunk has caused ripples across the network and security ecosystem since it was announced in September 2023. It may be a win for both by bringing together Splunk’s cybersecurity with Cisco’s network data, but as with any merger, there are some questions.
In this case, I’ve seen concerns around the potential culture clash, the pace of innovation, and especially how this could affect Splunk costs.
Observability costs can already spiral, surprisingly, out of control as demonstrated by Datadog’s shocking $65M/year customer bill (hint: it was Coinbase). Unfortunately, when budgets are tight and customer-facing services are sacrosanct, observability might be first on the chopping block when companies are looking to shave 10% off quarterly cloud costs.
Some vendors have reacted to the issue of steeply rising spending on observability metrics by introducing a way to pull together unused and partly used metrics into lower cardinality versions to reduce costs.
In this blog, I’m going to take a look at what’s driving these growing cloud costs and how they can be curbed so monitoring doesn’t have to be sacrificed.
When services like Splunk and Datadog and others first launched, one of the key promises of the cloud-delivery model was scalability – companies could use as little or as much of the service as they needed. But as the model has expanded over time, we’re starting to see some cracks along with the benefits: