Splunk caters to various industry verticals, such as aerospace and defense, communications, energy and utilities, financial services, healthcare, higher education, manufacturing, nonprofit, online services, public sector, retail, media and entertainment, technology, and travel and transportation. The company heavily invests in R&D activities; for instance, the company invested more than 32% of its revenue, which is around USD 215.3 million, in R&D in 2016. Splunk mainly adopts the inorganic growth strategy to maintain its leadership position and increase its footprint in the market. For instance, in 2016, Splunk invested in Acalvio & Insight Engines to extend the power and reach of the Splunk platform. In order to serve its customers and resellers in a better way, Splunk has forged various strategic alliances. For instance, in 2015, Splunk entered into a distribution agreement with Arrow Electronics for the US, Canada, and across 22 European countries. Further, as part of its organic growth strategy, Splunk upgrades its products to cater to the needs of its clients in a better manner. For instance, in 2016, Splunk introduced new versions of its solutions to make it faster and easier to maximize the value machine data can deliver to organizations.