Splunk Enterprise Certified Admin Practice Test

Which factor influences the cost-effectiveness of ingest-based licensing?

1. The volume of data being ingested

2. The number of Splunk users

3. The geographical location of the data

4. The diversity of data formats

The correct answer is: The volume of data being ingested

The volume of data being ingested is the primary factor that influences the cost-effectiveness of ingest-based licensing in Splunk. In this licensing model, organizations are charged based on the amount of data they ingest into the Splunk platform, typically measured in gigabytes per day. Therefore, higher data ingestion volumes translate directly into higher costs. Conversely, by managing and potentially reducing the volume of data being ingested—perhaps through data sampling, filtering, or summarization—an organization can improve its cost-effectiveness under this licensing structure. While the number of users, geographical location, and the diversity of data formats may affect operational performance or complexity, they do not directly impact the cost structure of ingest-based licensing. The core principle behind this licensing model is centered on the volume of data ingested, making it the most critical factor regarding cost management in Splunk environments.