A Tale of Two Markets: When Cloud Computing and Big Data Collide

Two burgeoning markets are fundamentally redefining enterprise software: Cloud Computing and Big Data. Both are large (by conservative estimates, the Big Data market and the SaaS application segment of the Cloud market each total more than $20 billion) and growing fast (42 percent of enterprises say that they will increase their spending on Cloud Computing in 2015).

As a result, organizations are looking to become more nimble and DevOps-oriented, and a disproportionate percentage of greenfield development is taking place in the Cloud. Big Data-derived value is now touted as the ‘secret sauce’ of almost every new software company’s fundraising pitch. 

However, very few companies are imbued with DNA from both of these markets at their very core. Those with such DNA have an inherent advantage in that they are built from the ground up to account for the current limitations of and exploit the benefits of the Cloud.  In my previous role as an operator and in my current role as an investor I was and still frequently am forced to choose one or the other.  Since first learning about and investing in Sumo Logic more than two years ago, it remains one of a surprisingly small cohort born in the Cloud to address a specific Big Data problem: machine data intelligence. 

Better Together 

In a sense, Big Data and Cloud is the perfect marriage. Together they enable Sumo Logic to act as a hub for IT – spanning across the data silos of structured and unstructured data as well as various point software solutions – to offer DevOps, IT Ops and Security Ops teams to get the visibility and transparency that they require to detect and triage issues. 

Leveraging machine learning, statistical analysis and human feedback, Sumo Logic can automatically detect anomalies in streams of machine data and assemble them into clusters called events.

As a Cloud-based SaaS platform, Sumo Logic is able to support elastic data ingest and management as well as search/analytics performance tuning in ways that are simply not possible to do on-premise. The product also alleviates many pains that customers experience with non-Cloud-born data management software – it requires no customer personnel to support the underlying hardware infrastructure and and never requires software updates. 

Anomaly Detection is a great example of how data analytics functionality gets even better in the Cloud. Leveraging machine learning, statistical analysis and human feedback, Sumo Logic can automatically detect anomalies in streams of machine data and assemble them into clusters called events. These events are often leading indicators of significant operational or security issues and are provided in real-time to administrators for triage so that they can avoid issues entirely or quickly identify the root cause for whatever has transpired. Iteratively tuning these algorithms and factoring in human feedback is extremely difficult to do without a Cloud-based delivery model. 

But what this model unlocks is the potential in time to enable enterprises to tap into collective intelligence in real-time – in other words, tap into the wisdom of the crowd for everyone’s mutual benefit. Going forward, Sumo Logic is uniquely positioned to leverage learnings across customers so that a security incident experienced by a single customer can be understood and prevented by all Sumo Logic customers. 

Accelerating Momentum 

Sumo Logic is uniquely positioned to leverage learnings across customers so that a security incident experienced by a single customer can be understood and prevented by all Sumo Logic customers.

This message increasingly resonates with Sumo Logic customers. This year Sumo Logic has added customers of all shapes, sizes and Cloud affinities ranging from Akamai to Ooyala to WD-40. This quarter alone, Sumo Logic has added more than 100 new customers and grown sequential quarter-over-quarter bookings by more than 100%. The growth in data stored and analyzed in the platform is equally impressive. Sumo Logic now processes more than 14 trillion new logs every day and has processed more than 4.5 quadrillion logs over the past 2 years

To accelerate the company’s growth, Sumo Logic today announced Ramin Sayar as its new CEO. With Ramin, Sumo Logic gains a leader with tremendous domain expertise who has helped shape VMware’s Cloud Management business unit. He brings a deep understanding and even deeper passion for product development. Ramin’s previous leadership roles at marquee companies such as HP, Mercury, Tibco, iPlanet/AOL and Netscape validate his ability to drive disruptive technology and business growth. He will help the already strong founding team and executive talent further propel Sumo Logic’s market growth, and position as leaders in the log management industry. 

I could not be more excited to have Ramin as part of the Sumo Logic team. His domain and leadership experience will enable Sumo Logic to continue to tackle this amazing market opportunity and cement their position as the leading Cloud provider for machine data intelligence.