"the engine for machine data" - I always thought of Datawatch as the undisputed world leader of the engine for Machine data. It is.. Then after the spectacular or in my opinion ridiculous IPO market valuation for Splunk I decided to take a look. It surprised me Splunk's message is simple and repeated often... engine for machine data. Its repeated again and again on their company website. Turning machine data into actionable data, machine data solutions, machine data collection contains a definitive record of the activity, splunk + machine data = operational success. Okay i will be nice. Splunk may fit well with ecommerce companies monitoring traffic issues, in theory advertising optimization, downtime monitoring, or general system awareness. But the bulk of the potential for company improvements is not in real time log files or online activity monitoring but in the +90% of other company machine generated data.Sorry, Datawatch is the king of this space. Splunk does not come close to the useful impact from machine generated data that Datawatch has accomplished during their dominance over the past 20 years. And Datawatch although profitable with spectacular growth does not deserve to trade at 5 fold the current price based on the price to sales valuation of Splunk. Splunk trades at 25 times unprofitable sales.
Splunk may have an obscene valuation at 3.25 billion with only 120 million in very unprofitable sales. But Datawatch is the engine for Machine data with over 20,000 companies as customers and 500,000 license users. Just because Datawatch is profitable with a market value of only 86 million that doesn't change their clear worldwide leadership in exploiting Machine data. Splunk, Inc. was founded in 2005. Datawatch has been developing and improving solution to leverage machine data for about 20 years with out of the box software. 497 of the Fortune 500 are customers of Datawatch. Splunk has a market value of 3.25 billion with only half of the Fortune 100. Datawatch market value is 86 million. Splunk trades at a market value 40 times Datawatch. Splunk projects potential profitability in 2014. Datawatch continues to be profitable with improving margins, sales growth and a conservative approach to building a word class organization while maintaining profitability.
Good luck to Splunk as the choice for real time IT related activity monitoring but Datawatch is the clear choice for companies looking to discover new knowledge with the +90% of the other machine generated data. The cost of a machine generated data solution from Datawatch is far less on the initial setup and ongoing future costs but additionally enhanced as the pool of expertise exists in the 500k licenses sold throughout the world that can be instantly acquired at a staff level financial analysis salary. Yes Datawatch sells instant ROI. Hiring costly Splunk consultants and developing specific solution and worse yet giving control back to the costly IT departments is unwise and detrimental to a company's progress.
The market is more than big enough for Datawatch and Splunk. Their areas of expertise and methods of adding company value is different. Good luck to both companies!
Long time and current holder of DWCH (Datawatch)
BTW, my definition of machine data is any business data activity generated by the company..Hence over 90% of the "machine data" is generated/captured in sources other that IT related activity reports/log files.