UPDATED 19:20 EDT / FEBRUARY 19 2019

POLICY

Mysteriously, analytics firm Splunk says it’s pulling out of Russia

Big data analytics firm Splunk Inc. says it’s pulling out of Russia. The company, which also sells cybersecurity tools, didn’t provide any reason for its decision, beyond that it’s “continually evaluating” where it invests and focuses its resources.

“As part of this ongoing evaluation, we have decided Splunk will no longer be selling software and services to organizations in Russia — either directly or through partners,” Splunk said in a statement on its website.

The decision not only affects companies based in Russia, but also their subsidiaries who operate in other countries. Companies that use Splunk’s software and services within Russia are also barred, the statement said. Splunk will continue to honor existing contracts, but those deals will not be expanded or renewed.

Splunk’s main product is the Splunk Enterprise Security platform, which is a suite of event management and security tools for companies that gathers and analyzes data from machines and sensors. The platform provides insights into potential security issues with networks, endpoints and identity information services.

The company’s decision to quit Russia may have something to do with a January 2018 request from that country’s government to access the source code of several U.S. software companies’ products. Reuters reported at the time that companies including Hewlett-Packard Enterprise Co., SAP SE and Symantec Corp. had all acceded to the request.

Trend Micro Inc., another cybersecurity firm, reportedly refused the request, however. It’s not clear what the consequences of that decision were, if any.

Analyst Holger Mueller of Constellation Research Inc. said it’s not always clear why technology companies choose to operate in some markets but not others.

“It gets interesting when they retreat, like with Splunk, but as usual no reasons are given,” Mueller said. “But usually these decisions stem from intellectual property, security and data residency concerns, as well as government interference. It’s not clear what moves Splunk but they are likely to lose business. We may never learn.”

Splunk Chief Executive Officer Doug Merritt appeared last October on theCUBE, SiliconANGLE Media’s mobile livestreaming studio, during the Splunk .conf18 event:

Photo: Splunk/Facebook

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