Transforming Splunk ROI and Data Utilization for a Fortune 500 Information Technology Company with datasensAI

Customer Challenge

A large Fortune 100/500 information technology company serving telecommunications, utilities, and enterprise businesses faced critical inefficiencies in their Splunk Cloud deployment. Despite operating a massive 50,000 GB (50TB) daily license on a Service-Based (SVC) licensing model, the organization was struggling with:

  • Severe Data Underutilization: 82% of their ingested data remained underutilized, delivering minimal operational value despite consuming significant licensing capacity
  • Dismal Return on Investment: Only 17% ROI on their Splunk data investment, representing massive resource waste across their global infrastructure
  • Extreme Data Imbalance: Just 5% of data sources were generating 82% of total data volume, creating noise and obscuring valuable signals
  • Inefficient Search Operations: 2,500+ searches were operating without proper metadata, degrading performance and user experience
  • Excessive Storage Costs: 90-day retention policies were applied universally, even though business requirements dictated only 7-day retention for most data sources
  • Lack of Visibility: Without clear insights into data value and utilization patterns, IT leadership struggled to make informed decisions about their multi-million dollar Splunk investment

As a technology solutions provider serving critical infrastructure clients, the company needed to optimize their observability platform to maintain competitive advantage while controlling spiraling costs.

Solution

bitsIO deployed datasensAI through a comprehensive workshop-driven engagement, providing AI-powered analytics and strategic optimization guidance for the customer's 50TB Splunk Cloud environment. Key solution components included:

  • Strategic datasensAI Workshop: Conducted an intensive collaborative workshop with IT leadership and operations teams to analyze current state, identify pain points, and establish optimization priorities aligned with business objectives and customer delivery requirements.
  • Comprehensive Data Value Assessment: datasensAI analyzed the entire 50TB daily ingest volume, examining utilization patterns, search efficiency, sourcetype value, and retention policies. The platform provided clear visibility into which data sources delivered operational value versus those generating noise.
  • Data Imbalance Analysis: Identified that just 5% of data sources were responsible for 82% of total volume, enabling targeted interventions to address the signal-to-noise ratio and optimize the data pipeline for high-value intelligence.
  • AI-Driven Sourcetype Optimization: Leveraged machine learning to score each data source based on actual usage patterns, search activity, and operational impact. This revealed opportunities to prioritize high-value sources while routing or reducing low-value, high-volume data streams.
  • ROI Roadmap and Executive Dashboards: Provided clear visualizations and actionable metrics showing current state (17% ROI, 82% underutilized data) versus optimized state (80% utilization), enabling data-driven investment decisions and executive-level reporting.
  • Search Performance Intelligence: Analyzed 2,500+ inefficient searches lacking proper metadata and provided specific recommendations to improve search efficiency, reduce system load, and enhance user productivity across security, infrastructure, and application teams.
  • Strategic Optimization Framework: Based on comprehensive insights, datasensAI delivered a multi-layered optimization strategy:

Customer Outcomes

  • Dramatic Data Utilization Transformation: By implementing datasensAI recommendations, the IT company achieved a remarkable turnaround—increasing data utilization from just 18% (82% waste) to 80% utilization, fundamentally transforming their Splunk environment from a cost burden into a strategic asset.
  • 5x ROI Improvement Potential: The organization established a clear path to increase their datasensAI ROI score from 17% to over 80%, unlocking exponentially greater value from their existing 50TB daily license and multi-million dollar Splunk investment.
  • Massive Storage Cost Reduction: By right-sizing retention policies from 90 days to the required 7-day period for appropriate data sources, the company eliminated excessive storage costs while maintaining compliance and investigation capabilities—representing millions in annual cost avoidance.
  • Optimized Data Pipeline with DMX: Implementation of Splunk DMX (Dynamic Routing and Transformation) created a smarter data pipeline that filtered noise, enriched high-value data, and routed sources appropriately—addressing the 5% of sources generating 82% of volume problem at the edge before consuming licensing capacity.
  • Enhanced Search Performance and User Productivity: Optimization of 2,500+ inefficient searches through proper metadata implementation resulted in dramatically faster query response times, reduced system load, and improved productivity for security analysts, infrastructure engineers, and application teams supporting Fortune 500 clients.
  • Strategic Capacity Management: With clear visibility into which data sources deliver operational value, the IT company gained the ability to make strategic decisions about data onboarding, use case expansion, and license allocation—ensuring every GB of their 50TB license drives business outcomes.
  • Improved Service Delivery to Enterprise Clients: By optimizing their observability platform, the IT company enhanced their ability to deliver software and hardware solutions to telecommunications, utility, and Fortune 100/500 customers with greater reliability, faster incident response, and better security posture.
  • Executive-Level Investment Justification: datasensAI provided the metrics and business case needed to justify Splunk investment to C-level leadership, transforming the platform from a questioned cost center into a demonstrably valuable strategic asset for competitive differentiation.

Partner Name: bitsIO Inc

About Client: A Fortune 500 IT Company

Customer Location: USA

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