Cost of Revenue: A Tale of Two Tech Giants

In the ever-evolving tech landscape, understanding cost structures is crucial. SAP SE, a stalwart in enterprise software, and Splunk Inc., a leader in data analytics, offer a fascinating study in contrasts. From 2014 to 2023, SAP SE's cost of revenue grew by approximately 63%, peaking in 2022. In contrast, Splunk Inc. saw a staggering increase of over 2300% during the same period, reflecting its rapid expansion and scaling efforts.

A Decade of Growth

SAP SE consistently maintained a higher cost of revenue, indicative of its established market presence and extensive product offerings. Meanwhile, Splunk Inc.'s exponential growth highlights its aggressive market penetration and investment in innovation. Notably, 2024 data for SAP SE is missing, suggesting a potential shift or strategic change. This comparison underscores the diverse strategies tech companies employ to navigate growth and competition.