Why‘Digital Transformation’ via ... - IDC CIO

© 2020 SPLUNK INC.

Why ‘Digital Transformation’ via DevOps Now Requires an AIOps Strategy to Succeed

© 2 0 1 9 S P L U N K I N C .

Stephane EstevezEMEA Product Marketing Director, IT Markets, Splunk

During the course of this presentation, we may make forward-looking statements regarding

future events or plans of the company. We caution you that such statements reflect our

current expectations and estimates based on factors currently known to us and that actual

events or results may differ materially. The forward-looking statements made in the this

presentation are being made as of the time and date of its live presentation. If reviewed after

its live presentation, it may not contain current or accurate information. We do not assume

any obligation to update any forward-looking statements made herein.

In addition, any information about our roadmap outlines our general product direction and is

subject to change at any time without notice. It is for informational purposes only, and shall

not be incorporated into any contract or other commitment. Splunk undertakes no obligation

either to develop the features or functionalities described or to include any such feature or

functionality in a future release.

Splunk, Splunk>, Turn Data Into Doing, The Engine for Machine Data, Splunk Cloud, Splunk

Light and SPL are trademarks and registered trademarks of Splunk Inc. in the United States

and other countries. All other brand names, product names, or trademarks belong to their

respective owners. © 2020 Splunk Inc. All rights reserved.

Forward-LookingStatements

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Transform your information into

accessible and available 0s & 1s

Start applying those 0s & 1s to improve,

simplify & automate existing operations

Use technology to create new business

applications & do business in a new (digital) way

InformationDigitisation is the technical process of converting analog

information from a physical format to digital one

Digitalisationis the organisational process of leveraging

digitisation to improve business processes

“Digital Transformation (DT/DX)is the use of new, fast and frequently changing

digital technology to solve problems”

Digitisation vsDigitalisation vsDigital TransformationDigitize business data → Improve current business → Create new business

Digitize

filmsOnline

rental

Unlimited

streaming

91%of organizations are

engaged in some form of digital initiatives Source: Gartner 2020

01101101010011011010101011

© 2019 SPLUNK INC.

2018

#1 – Enable worker better productivity

#2 – Better manage business

performance through data availability

and visibility#3 – Meet customer experience

expectations

What does « digital-business » means to organisations?*

*Source: IDG 2018 “State of Digital Business Transformation” & : IDG “Digital business survey 2019”

2019

#1 – Meet customer experienceexpectations

#2 – Enable worker better productivity

#3 – Better manage business performance through data availability

and visibility

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CEOs in Western Europe planning ‘operational efficiencies’

to drive revenue growth

Western Europe CEOs survey*

*Source: PwC 22nd Annual Global CEO Survey (2019)

80% 51% 63%

recognize that they simply don’t have the capability to use the

data they have to make optimized decisions due to siloed data.

agree that AI will have a larger impact than the

Internet

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CEO expectations

are changing

Multi-cloud

adoption is rising

81% of public cloud users

choose 2 or more providers**

61% are using 3 or more**

Technology

becomes ephemeral

61% of microservices users have been

using it for a year or more***

38% doesn’t use containers for

Microservices (due to technical debt)***

3 out of top 5 biggest

microservices challenges are related to management complexity ***

Digital transformation

is accelerating

Digital transformation acceleration

Remote work (more cloud, virtual war rooms..)

Stronger business involvement

Pre-pandemic era The new normal

*Source: PwC 22nd Annual Global CEO Survey **Source: Gartner May 2019 ***Source : O’Reilly Microservices Adoption in 2020

New Context

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Big Data Challenges*:

- Lack of skills- Get Data In

- Inappropriate application

DevOps Challenges:

- DEVops vs DevOps- Observability

- Ephemeral / distributed architectures

Legacy tools Challenges*:

- Lack of integrations- Tool replacement

- Lack of Budget

- Too many competing prioritites

*Source: IDG 2018 “State of Digital Business Transformation” & : IDG “Digital business survey 2019”

COMPLEXITY

SPEED

VISIBILITY

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Complexity

Speed

VisibilityMore tools = more silos

INFRASTRUCTURE

APP

Cloud

Networks

Security

API

WEB Smartphones

and Devices

Custom

Applications

Storage

Servers

DB

APM

Containers /

microservices

APP logs

Syslogs

GCP

?

?

?

AWS

Azure

?

Openshift…

?

High Cardinality

?

Streaming

BIZ / SERVICE

Call center

Revenue NPS

Customer

retention

Funnel

Exec

MBO’s

Digital

Online

CloudWatch

CloudTrail

Trusted

Advisor

Systems

Manager

Azure Monitor

Log analytics

Application

insights

Metrics

Health

Monitoring

Operations

Cloud trace

Monitoring

Logging

Cloud

Profiler

Cloud APIs

MoM

APM

SIEM

Infra

monitoring

Network

Managmt

Cloud broker

Service

Managmt

Database

Managmt

VM

Managmt

Storage

Managmt

● No visibility of how tech stack components affect business goals

● Manual investigations and resolutions across siloed teams

● Need the confidence of full stack visibility

● Difficulty to access data

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Complexity

Speed

VisibilityMore layers = more complexity

INFRASTRUCTURE

APP

Cloud

Networks

Security

API

WEB Smartphones

and Devices

Custom

Applications

Storage

Servers

DB

APM

Containers /

microservices

APP logs

Syslogs

● NOISE

● NOISE

● NOISEGCP

?

?

?

AWS

Azure

?

Openshift…

?

High Cardinality

?

Streaming

BIZ / SERVICE

Call center

Revenue NPS

Customer

retention

Funnel

Exec

MBO’s

Digital

Online

tools

events

noise

noisedata

data

events

logs

metrics

traces

logs

noise

noise

tool

tool

logs

logs

data

tooldata

traces

traces

events

ITOps

DevSec

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Complexity

Speed

VisibilityMore layers = more tools

INFRASTRUCTURE

APP

Cloud

Networks

Security

API

WEB Smartphones

and Devices

Custom

Applications

Storage

Servers

DB

APM

Containers /

microservices

APP logs

Syslogs

● Lack of visibility

● Complex toolset

● Poor MTTD / MTTR

● New KPI: Mean Time to

Innocence

GCP

?

?

?

AWS

Azure

?

Openshift…

?

High Cardinality

?

Streaming

BIZ / SERVICE

Call center

Revenue NPS

Customer

retention

Funnel

Exec

MBO’s

Digital

Online

Service

OwnersDevCloud

Admin

SysAdmin

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Time for AIOPs?

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To Combat Digital Transformation challenges, AIOps: • Brings together data from multiple sources

• Simplifies data analysis

• Automates response

• Avoids downtime (improving customer satisfaction)

• Brings together data that had previously been siloed (better analysis)

• Accelerates root-cause analysis (saves time & resources)

• Proactively identifies and prevent errors (focusing team on higher value tasks)

• Improves forecasting for system an application growth (to meet demand)

• And more

Key business benefits of AIOps:

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AIOps at Splunk

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Online Services

Networks

Security

Call Detail Records

WebServices

Telecoms

Web Clickstreams

Online Shopping Cart

Smartphones and Devices

CustomApplications

Energy Meters

Storage

Servers

GPS Location

RFID

Databases

Messaging

Firewall

APM

Tracing

Social

Media

Containers

TURN DATA INTO DOING

TO EVERYONE

Drive new revenue

Launch new products

Improve Business process

Meet SLAs

Reduce app Time to Market

Secure my organization

Move to predictive / proactive IT

Get full-stack Observability

Service Manager

Product Owner

CISO

DevOps

Process Engineer

Operations Manager

NOC

COOWHAT WE DO:

© 2018 SPLUNK INC.

How to find a needle in multiple haystacks?(choose your tool)

Network?

Database?

Middleware?

Hardware?

Wrong

command?

Connection?

Apache?VM?

Mainframe?

Load balancer?Code?

Collect ALL data

• Collect from all silos

• Data in original raw format

• Add open sources apps to

ingest data on the fly

• Schema on the fly• Dynamic thresholding

• Realtime correlation

Clustering & aggregation

• Real time event

clustering/correlation

• Reduce alert noise

• Behavioural analytics

• Deduplication

Add context

• Measure / report on

indicators that matters

• Add service / business

context

• Add actionable information to detection

Salessso

Claims

Anomaly detection

• Catch issues that thresholds cannot

• Reduce event clutter

• Deviation from past behaviour

• Deviation from peers

• Unusual change in features

Assisted deep dive

investigation

• Root cause analysis• Powerful & easy to use

search & investigate

language

?

Predictive

Analytics• Predict service health

• Predict events• Trend forecasting• Detect influencing

entities• Early warning of

failure

70% to 90%Reduction in investigation time

15% to 45%Reduction in high priority incidents

67% to 82%Reduction in business

impact

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Fully customizable glass tables

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Examples: ML Applied to IT Operations

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• Needed to pare down thousands of alerts and events from many silos (applications, security, network…)

• Needed real-time correlation and rule engine to automate event handling

“There are days when you get a flood of events; Splunk

ITSI prioritizes the events, gives you insight into not only

that this is broken but what’s been affected right as you

look at the alert screen,” Don Mahler, Director of Performance

Management, Leidos

20 management

systems

120 IT

services

240

Locations

5000

Daily

alerts

50

Tickets

-97% event

noise

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Examples: ML Applied to IOT

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“We are the trusted service team who

effectively anticipates, enables and

supports technology solutions for our

customers…”Brian King, SVP and Chief, Technology Services & Operations

Predicting Cell congestion to avoid:

• Customer unsatisfaction

• Revenue loss

• Cost of troubleshooting

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“The spark plug is among the most

strained components of an engine. If

it fails, the motor shuts down. We

wanted to provide our customers with

a solution that helps to prevent the

imminent failure of a spark plug

sometime in advance.”Andreas Zientek, Systems Engineer

Zeppelin deployed Splunk to replace a monitoring tool that was no

longer fit for purpose. Expanding to new use cases such as Internet of

Things (IoT) was a natural extension. With the help of Splunk’s Machine

Learning Toolkit, Zeppelin predicts future failures in spark plugs — the

leading cause of power plant shutdowns.

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Digital Transformation with SplunkCustomer Examples

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“Porsche’s goal is to deliver a premium digital experience centred around its customers.”

From Factory (shop floor) to the New Taycan…

https://www.youtube.com/watch?v=1KkP2Iicjhk

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Porsche Connect

Event logs & customer journey analysis

Digital journey predictive analytics

Charging stations management

Next charging station location prediction

Porsche: From 1 to 60+ projects in 2 years

Shop floor analytics (factory – industry 4.0)

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Operationalizing ML Single PlatformData “as it is”Any data,

Any scale,

Any location

WHY SPLUNK FOR DIGITAL TRANSFORMATION AND AIOPS?

Start

small

1 high

value app /service

Measure

success

Repeat

Thank You

© 2020 SPLUNK INC.