Splunk satisfies the needs of numerous industry verticals comprising aerospace and defense, IT and 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 31% of its revenue that is around USD 295.9 million, in R&D in 2017. Splunk mainly adopts the inorganic growth strategy to maintain its leadership position and increase its footprints in the market. For instance, in 2015, Splunk entered into various strategic alliances. In 2015, Splunk entered into a distribution agreement with Arrow Electronics for the US, Canada, and approximately 22 European countries. Furthermore, 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.