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Increasing E-Commerce Conversion with Open Source Log Analytics Tools

Real-time e-commerce personalization; $million reduction in storage and licensing costs

BACKGROUND

A system-wide logging infrastructure combined with log analytics is a powerful way to improve operational performance in IT and business. By analyzing event logs and system metrics that track performance of IT systems and user logs that capture behavior of users who interact with e-commerce sites, retailers can gather data and discover insights leading to more agile operations, improved competitive advantage, and increased revenue.

CHALLENGES

The exponential growth in e-commerce activities and transactions for online retailers are generating terabytes or more of log data every day, making log management and analysis nearly impossible. The combined challenges of data volume and the associated storage and commercial software licensing costs have led many organizations to look for more cost-effective alternatives.

Our customer had been paying Splunk $200,000+ per year for less than 600 gigabytes of data for just one of their e-commerce sites. They were quoted nearly three times this amount to quadruple the data for additional sites. They estimated that their data needs would continue to grow to terabytes which would cost them millions of dollars. Even at deep discounting, they did not see how they could afford to maintain Splunk.

SOLUTION

They decided to move to an open source technologies (the Elastic Stack) hosted on their own infrastructure. Open source log analytics tools offer the necessary abilities to collect, process, and analyze massive volumes of log data without having to dump it into relational data warehouses for retrieval through SQL queries. With their customizability, speed, and affordability, open source technologies have emerged as solid competitors to commercial software.

log analytics in e-commerceWith the open source Elastic Stack (Elasticsearch, Logstash, Kibana, and Beats), our customer will be able to better monitor their event logs, system metrics, and user logs which contain valuable information that functional teams and executives can mine for performance-improving insight and decision making.

The business benefits of real-time log indexing include:

  • More uptime and fewer outages
  • Less fraud and reduced security risk
  • Reduce growth in infrastructure
  • Faster problem resolution

RESULTS

By moving from Splunk to the Elastic Stack, this customer will save millions of dollars per year with no volume restrictions other than available hardware. Open source log analytics tools will also make new features and functions possible such as real-time end-user personalization which will lead to happier shoppers and ultimately, increased conversion and revenue.

 

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