Honestly, your competing with inhouse scripts people spend a few weeks / year maintaining. Which is not to say you can't make a lot of money doing so. Ideally, your saving people significant time writing these scripts, but tossing out buzzwords just alienates your users.
I am not a Splunk developer or serious user of it, but you greatly underestimate the problem space to suggest this class of products address the same problems solved by even a very skilled scripter's scripts.
Competing business idea...?
I have since left working with Splunk directly but I would still advocate its use because it's one of the better commercial (albeit expensive) log management/SIEM products around.
* the largest data source in any enterprise
* increasingly must be stored for long-term analysis ...
* by corporate policy or ...
* by government regulation/demand
Regular open-source tool stacks can't do this without astronomical cost in storage hardware. Various log analysis players have managed to make this data storable and some have done well on the analysis side.Splunk will do well. I hope this boosts acquisition interest in my old company, http://www.sensage.com, another log analysis company.
The one useful thing it can do is give (say) devs access to logfiles from prod servers that they aren't allowed for whatever reason to log into themselves. But you could do this yourself with a periodic rsync to an internal webserver...