Sumo Logic, the “big data” startup that focuses on analytics, has pulled in $30 million for its third-round of funding.
Most large companies will generate terabytes of log data every day. This data can be used to troubleshoot operational issues, uncover security risks and ensure regulatory compliance.
Sumo Logic wants to replace company’s traditional log management systems, which typically leave 98% of data unanalyzed. Its founders say that Sumo Logic is unique as it’s cloud-based and can be set up in a matter of minutes.
The Silicon Valley-based startup, which competes most closely with Splunk, has scored some major-league enterprise customers that are willing to pay for its “premium” offering. The startup also offers a free service that is popular with startups and small businesses.
According to the company’s CEO, Vance Loiselle, Sumo Logic has signed on almost 40 paying customers since launching this February. It is used by the likes of GoDaddy, Netflix, Ooyala and Formspring to turn their log management data into actionable insights.
“Our log reduce engine can take thousands of pages of results and then shrink it down into logical patters based on our machine learning algorithms,” said Loiselle. “That’s a better way to get direction and insight than sifting through thousands of results.”
With the funding, the company will build out its sales, marketing and operations team.
Accel Partners, a Silicon Valley venture capital firm with a $100 million fund dedicated to big data startups, will lead the financing. Existing investors Sutter Hill Ventures and Greylock Ventures also participated in the round.