Driving 40% Storage Cost Savings and Security Modernization for a National Retail Chain with datasensAI

Customer Challenge

A national retail chain operating warehouse-style stores across the country faced significant operational and financial challenges with their Splunk Cloud deployment. Despite investing in a substantial 150,000 GB (150TB) daily license on an Ingest-Based licensing model, the organization encountered:

  • Poor Return on Investment: Only 17% ROI on their Splunk data investment, representing substantial waste in their observability and security platform spend
  • Storage Cost Overruns: Excessive data retention policies were driving unsustainable storage costs, impacting the bottom line of a business built on everyday low prices and operational efficiency
  • Inefficient Search Performance: Poorly optimized searches were delivering slow insights, hampering security teams' ability to detect threats and operations teams' ability to troubleshoot issues affecting customer experience
  • Limited Security Value: Misaligned use cases and inefficient data utilization meant the retail chain was missing critical security threats across their point-of-sale systems, e-commerce platform, and warehouse operations
  • System Vulnerability: Running an outdated Splunk version exposed the organization to security risks and prevented them from leveraging modern capabilities for threat detection and operational monitoring
  • Operational Blind Spots: Without optimized data pipelines, the retailer struggled to gain actionable insights from their extensive product range, DIY class operations, and customer service touchpoints

For a business serving budget-conscious customers with competitive pricing, controlling technology costs while maintaining security and operational excellence was mission-critical.

bitsIO deployed datasensAI to provide comprehensive analytics and strategic optimization guidance for the customer's 150TB Splunk Cloud environment, enabling data-driven decisions to reduce costs while enhancing security posture. Key solution components included:

Comprehensive ROI and Utilization Assessment: datasensAI analyzed the entire 150TB daily ingest volume to establish baseline ROI metrics (17%), identify underutilized data sources, and quantify opportunities for optimization across security, operations, and business analytics use cases.

  • Data Pipeline Optimization with DMX: Implemented Splunk DMX (Dynamic Routing and Transformation) to create smarter data pipelines for high-volume, low-value sources. This enabled the retailer to filter noise at the edge, enrich critical data, and route sources appropriately—reducing ingest volume while improving data quality for security and operational monitoring.
  • Storage Cost Optimization Strategy: Conducted detailed retention policy analysis and developed a tiered storage approach that aligned data retention with actual business, compliance, and security investigation requirements. This included:
    • Shortening retention periods for low-value, high-volume data sources
    • Implementing federated search capabilities for historical data stored in cost-effective S3 buckets
    • Prioritizing hot storage for security-critical and operationally-relevant data sources
  • AI-Driven Use Case Expansion: Leveraged datasensAI's recommendation engine to identify new security, fraud detection, and operational use cases that could be developed using existing but underutilized data sources—enhancing security value without additional data ingestion costs.
  • Search Efficiency Refinement: Analyzed inefficient searches impacting performance and provided specific optimization recommendations including proper metadata usage, search acceleration, and query restructuring—enabling faster threat detection and operational troubleshooting.
  • System Modernization Roadmap: Developed a comprehensive upgrade plan to migrate from the outdated Splunk version to current releases, addressing security vulnerabilities while unlocking modern capabilities for threat intelligence, user behavior analytics, and advanced operational monitoring.
  • Retail-Specific Optimization: Tailored recommendations to address unique retail challenges including:
    • Point-of-sale transaction monitoring and fraud detection
    • E-commerce platform performance and security
    • Warehouse and supply chain operational visibility
    • Customer data protection and PCI compliance
    • Store network and infrastructure monitoring

Customer Outcomes

  • 40% Storage Cost Savings Achieved: Through datasensAI-guided optimization of retention policies, tiered storage implementation, and DMX-based data pipeline refinement, the national retail chain achieved a 40% reduction in storage costs—delivering substantial financial benefits that directly improved operational margins.
  • Dramatic ROI Improvement: By eliminating waste and aligning data ingestion with high-value use cases, the retailer established a clear path to increase their datasensAI ROI score from 17% to over 64%, transforming their Splunk investment from a cost burden into a strategic asset supporting security and operations.
  • Enhanced Security Posture Through Modernization: Upgrading from an outdated, vulnerable Splunk version to current releases eliminated security risks while enabling advanced threat detection capabilities across point-of-sale systems, e-commerce platforms, and corporate networks—protecting customer data and brand reputation.
  • Optimized Data Ingestion Strategy: DMX implementation created intelligent data pipelines that filtered noise, enriched security-relevant data, and routed sources efficiently—reducing unnecessary ingest volume while improving data quality for fraud detection, threat hunting, and operational monitoring.
  • Faster Insights for Security and Operations: Search efficiency refinements delivered significantly faster query response times, enabling security teams to detect and respond to threats more rapidly and operations teams to troubleshoot issues affecting customer experience in stores, online, and in DIY classes.
  • Expanded Security and Operational Use Cases: AI-recommended use cases enabled the retailer to develop new monitoring capabilities for fraud detection, insider threat detection, supply chain visibility, and customer experience optimization—all leveraging existing but previously underutilized data sources without additional licensing costs.
  • Improved Compliance and Risk Management: Optimized retention policies and enhanced security monitoring capabilities strengthened the retailer's ability to meet PCI DSS requirements, protect customer payment data, and demonstrate compliance to auditors and regulators.
  • Strategic Technology Investment Justification: datasensAI provided clear metrics and business case documentation showing 40% cost savings and ROI improvement, enabling IT leadership to justify Splunk investment to C-level executives in a cost-conscious retail environment focused on everyday low prices.

Partner Name: bitsIO Inc

About Client: A Large National Retail Chain Company

Customer Location: USA

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