Splunk pricing: How much does it cost?

Not only has security platform, Splunk, amassed an impressive user base including 92 companies on the Fortune 100 list, but it is also consecutively ranked first for market share in Gartner’s report of ITOM Performance Analysis Software and AIOps, ITIM and Other Monitoring Tools subsegments.

It therefore goes without saying that the tool is a widely adopted piece of software within many tech stacks. The question is, has it earned a place in your own portfolio?

While there are many considerations to be taken into account when purchasing a new SaaS tool, price remains an influential factor. Now more than ever thanks to soaring inflation rates.

Which then raises the questions of just how much Splunk costs, and whether or not it’s possible to get a discount.

Here’s everything you need to know.

How much does Splunk cost?

While Splunk’s pricing is quote-based, placing the company among the 55% of software vendors choosing not to publicly list its costs, the pricing page does indicate that there are four different plans to choose from, each with its own pricing model.

Splunk pricing plans

In its full pricing brochure, Splunk explains that its main Cloud Platform subscription can be priced in one of three ways. Here’s a brief summary of each program:

‍Workload pricing – Workload is described as “the most effective and efficient” way to use Splunk products. Pricing for this plan is a value-oriented metric determined by search activity, making it the best fit for organizations looking to tie their spending to the value they obtain. This Workload plan also gives you complete control over data usage and infrastructure, allowing you to explore multiple use cases, and scale when necessary.

Entity pricing – Entity pricing is available for Splunk IT, Security and Observability clouds, providing clear and predictable pricing which scales with business outcomes. Total cost is based on the number of hosts (protected devices) using Splunk observability products. Entity is the recommended plan for businesses looking to apply Splunk to defined security, ITOps and DevOps use cases.

Ingest pricing – Ingest is the traditional volume-based pricing plan, considered Splunk’s ‘legacy metric’. Ingest allows you to add users and scale activity for free. The amount of data ingested by Splunk products each day is the primary factor that determines cost.

‍Splunk Enterprise pricing

‍Ultimately, the price you’ll pay for Splunk will depend on your search activity and the type of pricing program that you opt for.

But what is the average company paying for an enterprise-level plan?

While Splunk itself doesn’t offer any specific pricing insights, it's still possible to get a frame of reference on pricing for this plan type. One way is by scouring online forums and review sites.

One site, for instance, states that enterprises requiring 500GB/day could be paying anything from $400,000 to $800,000 per annum. This factors in additional fees such as infrastructure, implementation, and training costs.

The problem is, much of this cost will be influenced by your organization’s specific needs and you have zero frame of reference of whether you’re being quoted a fair price, let alone the best price.

Plus, while this figure may provide you with a ballpark estimation, there’s no guarantee that this information is up-to-date, or even accurate. In fact, many other pricing forums reference Splunk ‘Light’, which stopped being available back in 2020.

Ultimately, this illustrates the issue of pricing transparency in SaaS.

While following a quote-based – or custom – pricing model can help vendors to provide bespoke pricing according to the specific needs, it leaves you on the back foot in figuring out the average price of each tool in your shortlist.

So, how can you find out the cost of a Splunk subscription without immediately entering into a sales conversation with the vendor?

In short, by obtaining pricing benchmarks.

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With access to real-time pricing and discounting data for more than 16,000 vendors worldwide – Splunk included – platforms such as Vertice can see exactly how much other companies with similar profiles are paying for their subscriptions.

In fact, according to our data, we know there’s a relatively low level of consistency across similar customer profiles, meaning that some users are paying significantly more than others for essentially the same offering.

So, we know there are deals to be had. The question is, how do you ensure that you’re getting the best possible discount?

How to get a discount on Splunk pricing

Even if Splunk listed its costs, the reality is that software prices are rarely set in stone. The fact we already know that multiple companies with similar usage needs are paying drastically different amounts for Splunk only confirms this.

Fortunately, there are a number of tactics you can apply to maximize your purchasing power and succeed with your negotiation strategy.

Commit to a longer subscription period

Naturally, a recurring sale is good news for software vendors and many will offer incentives if you sign on for a longer subscription period. You should, of course, only be committing to a yearly or even multi-year agreement if you’re confident that the tool will provide long-term value to your business.

Based on our data, we’ve found that SaaS providers will usually offer an extra 5% discount for each additional year of commitment from a user. So, signing on for longer subscriptions could yield more value across your entire software stack.

Leverage peer pricing benchmarks

While a longer subscription commitment can provide some leverage, it will only get you so far.

The most powerful leverage that you can gain during negotiations is intel into what other companies similar to yours are paying. When you’re equipped with this data, vendors are more likely to match any contract terms or discounted price points that have been offered to your peers.

As we’ve discussed though, sourcing this information online can be challenging — and even then, it may be unreliable. Your best bet for accessing reliable and accurate price benchmarking data is by working with a SaaS procurement software provider such as Vertice.

Work with a procurement partner such as Vertice

When it comes to software procurement, one of the most effective ways to increase your purchasing power is by using an intermediary. In other words, working with a procurement partner who will negotiate on your behalf – a process known as shuttle diplomacy – knowing exactly which levers to pull and when.

See how we saved one vacation rentals company $155,000 on a single contract.

The right provider will also have detailed knowledge about each of your vendors, for example their pricing flexibility, discount structures, and contract renewal terms that the average customer might not be aware of.

They will also likely know the vendor's typical negotiation tactics, any hidden fees or clauses that could impact cost, and whether there are opportunities for bundled pricing or volume discounts. Finally, they will be familiar with the vendor's performance history, including delivery timelines, support responsiveness, and service level agreements (SLAs), which can all be used to secure more favorable terms.