Understanding Splunk Architecture

Abhi NikamAbhi Nikam
4 min read

Introduction

In today’s data-driven world, organizations generate massive amounts of log and machine data. Managing and analyzing this data is critical for making informed decisions. Splunk is the go-to platform for collecting, indexing, and visualizing this data in real time.

This blog will guide you through Splunk's architecture, explaining its components with a real-world example: a banking application. By the end, you'll have a clear understanding of how Splunk works and how it transforms raw data into actionable insights.

Why Splunk ?

Before diving into the architecture, let’s understand why Splunk is indispensable:

  1. Real-Time Monitoring: Get instant alerts for system performance issues.

  2. Scalability: Handle data from small setups to global enterprises.

  3. Actionable Insights: Turn raw data into visualizations and alerts.

Real-World Example: A bank monitoring thousands of ATMs across the country uses Splunk to track transaction logs in real-time. If an ATM shows repeated failed transactions, Splunk instantly alerts the IT team, preventing potential revenue loss and enhancing customer experience.

Splunk architecture Overview

The Splunk architecture is composed of several components working together in a seamless pipeline. Here’s how it all fits together:

Key Components:

  • Forwarder: Collects data from source systems.

  • Indexer: Parses and stores data, making it searchable.

  • Search Head: Allows users to search and visualize data.

  • Deployment Server: Manages configurations for multiple forwarders.

  • Cluster Master: Manages redundancy and high availability of indexed data.

  • License Master: Ensures compliance with data ingestion limits.

Splunk Architecture Flow with a Banking Example

Let’s walk through how Splunk processes data step-by-step using a banking application like "MyBankApp."

1. Forwarders: Data Collection

Forwarders collect logs from multiple sources like:

  • ATMs (transaction logs: withdrawal, deposits, errors).

  • Banking servers (login attempts, server errors).

  • Mobile banking apps (transaction requests, session timeouts).

Example: An ATM in Chennai generates a log for every transaction. Universal Forwarders installed on the ATM server securely send this data to Splunk Indexers.

2. Indexer: Data Parsing and Storage

Once the logs reach the Indexer, they are parsed and stored as searchable events. Metadata such as timestamps, transaction IDs, and event types are assigned.

Example: A log from the ATM looks like:

  • Timestamp: 2025-04-11 12:15:00

  • Transaction Type: Withdrawal

  • Status: Success

The Indexer processes this raw log into a structured format, making it easy for analysts to search for failed transactions or unusual patterns.

3. Cluster Master: Ensuring Data Redundancy

To ensure data is never lost, the Cluster Master manages replicas of indexed data across multiple Indexers. This is critical for high availability in case of server failures.

Example: If one Indexer storing transaction logs fails, the Cluster Master ensures that another Indexer has an identical copy, so no logs are lost.

4. Search Head: Data Analysis and Visualization

The Search Head allows the bank’s IT and fraud teams to search for specific events, create dashboards, and set real-time alerts.

Example: A dashboard might show:

  • A sudden spike in failed login attempts.

  • A geographical heatmap of transaction volumes.

This helps the bank identify fraudulent activities, server downtimes, or operational inefficiencies.

5. Deployment Server: Centralized Configuration Management

Managing thousands of Forwarders across ATMs and banking branches can be tedious. The Deployment Server centrally manages these configurations.

Example: After a banking app update, the Deployment Server pushes new configurations to Forwarders, ensuring logs from the updated app are collected seamlessly.

6. License Master: Compliance and Monitoring

Splunk licenses are based on data ingestion volumes. The License Master ensures the bank stays within its licensed capacity and sends alerts if data usage spikes.

Example: During a festival, the bank processes high transaction volumes, and the License Master alerts the IT team if ingestion nears the license limit.

Splunk Data Flow

Here’s how the components work together:

  1. Forwarders collect data from sources like ATMs and mobile apps.

  2. Indexers process and store this data with redundancy managed by the Cluster Master.

  3. The Search Head provides a platform for analysis and visualization.

  4. The Deployment Server ensures Forwarders stay updated.

  5. The License Master tracks ingestion volumes.

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Written by

Abhi Nikam
Abhi Nikam