“When I think out over the next two or three years, and even the next few months with coronavirus, it feeds into this whole digital transformation movement,” says Splunk CEO Doug Merritt. “If this becomes a new normal and we start to adapt to more of a social distancing that just means more digital usage. There are a lot of great digital technologies we can all lean on so that we can still move forward with business.”
Doug Merritt, CEO of Splunk, discusses how the coronavirus is feeding into the digital transformation movement in an interview with Jim Cramer on CNBC:
Coronavirus Causing Business To Lean On Digital Technologies
It’s a brave new world. I think we’re all going to learn this in the coming months. Like every other company should be doing, we’re putting our employees health and safety first. We are encouraging people to work from home. We are a Zoom customer and a Slack customer. There are a lot of great digital technologies we can all lean on so that we can still move forward with business.
We’ve got a great install base of 20,000 customers that actively use Splunk. Over 80 percent of our revenues come from that install base. My hope is that for a lot of the transactions, they’re just expansions or additional capabilities from some new products that can be attached to the existing contracts. We’ll see we’ll see like we all do. I didn’t think well going into 2020 that I’d be a CEO of a company that was going through something like coronavirus.
Coronavirus “Social Distancing” Feeds Digital Transformation
When I think out over the next two or three years, and even the next few months with coronavirus, it feeds into this whole digital transformation movement. If this becomes a new normal and we start to adapt to more of a social distancing that just means more digital usage. The companies that we are all relying on, all the digital properties, have Splunk as their backbone to make sure that their services work effectively.
Whether it’s Slack or Zoom or AWS as a overall customer of ours, if we all turn digital that falls into the trend we’ve been seeing. We now need to make sense of what’s happening in that digital environment. We need to make it resilient and we need to make it safe, which means more Splunk.
