Sumo Logic Secures $80 Million Investment
REDWOOD CITY, Calif., June 1 — Sumo Logic, the industry’s leading, secure and cloud-native machine data analytics platform, today announced it has raised $80 million in a round led by DFJ Growth, with new investor Institutional Venture Partners (IVP) and participation from existing investors Greylock Partners, Sequoia Capital, Sutter Hill Ventures and Accel Partners. Sumo Logic has raised a total of $160.5 million in funding.
The funding will fuel growth across the business, spanning engineering, sales and global operations. Headcount, which increased by 250 percent year-over-year, is expected to double to approximately 400 employees within the next year to support the explosion in customer “The growth of software-centric business models has transformed the process of innovation from static release and upgrade cycles to a model for continuous innovation and delivery,” said Ramin Sayar, president & CEO, Sumo Logic. “Thousands of users rely on the Sumo Logic service every day to yield real-time data insights that support the ongoing innovation needed to deliver always-on, secure services and applications that are the foundation for great end-customer experiences.”
The estimated amount of data generated daily has reached 2.5 exabytes according to IBM, an almost 600 percent increase in less than 10 years. IT, software developers, compliance andsecurity professionals are challenged daily to sift through this mass of data and identify issues that may affect service or threaten security posture. Purpose-built for this new era of big data and cloud computing, the Sumo Logic service analyzes nearly one exabyte of data per month and delivers tens of millions of insights per day to help customers transform their operations.
“There is a new paradigm for the way mission-critical applications and services are built and deployed to take advantage of the tsunami of data being created all around us. Sumo Logic is at the center of this movement, enabling fundamental changes to the way that IT, operations, development and enterprise business leaders make decisions,” said Randy Glein, co-founder and managing director at DFJ Growth. “As the market has evolved, we’ve identified emerging leaders like Sumo Logic to partner with and support as they transition from early success to market dominance.”
“Sumo Logic is the first investment in IVP XV, a $1.4 billion fund focused on high-growth, later-stage technology companies,” said Steve Harrick, general partner at IVP. “Throughout the due diligence process, we talked to customers and our portfolio companies to gauge their experience with Sumo Logic. The response we heard was consistent – Sumo Logic is the only service in this space that delivers the scale and sophistication necessary to succeed long-term.”
In the past year, Sumo Logic’s business has scaled significantly, including:
- Rapid customer acquisition: More than 500 businesses have signed on with Sumo Logic to date.
- Platform innovation and expansion: The Sumo Logic Application for PCI Compliance and Cloud Audit services extend benefits for security and compliance professionals seeking to demonstrate ongoing compliance with industry standards like HIPAA, PCI, FISMA, SOX, ISO and COBIT. Transaction Analytics and Outlier and Predictive Analytics capabilities grant end-to-end visibility into multi-tier and distributed applications to support faster identification and remediation of performance and availability issues.
- Global expansion: Following expansion into the EMEA and APAC regions, Sumo Logic scaled availability of its machine data analytics platform to utilize four Amazon Web Services (AWS) regions and 12 different AWS Availability Zones to offer superior performance and resilience to global customers.
- Addition of key executive leadership: In addition to Ramin Sayar, appointed CEO in December after serving as senior vice president and general manager at VMware’s Cloud Management Business Unit, new leadership includes: Aaron Feigin as vice president of corporate marketing and communication from VMware, Bettina Koblick as vice president of people from Symantec, and Michael Peachey as vice president of customer experience from TIBCO.
About Sumo Logic
Sumo Logic is the industry’s leading, secure and purpose-built cloud-based machine data analytics service. We help over 500 enterprise customers including Medallia, WebJet, Betfair, PagerDuty, JetBlue, McGraw-Hill and GoGo Inflight gain instant insights into the growing pool of machine data within their complex environments. Proactive analytics improve reliability of mission-critical applications with deep visibility across DevOps, IT ops and compliance and security environments. The service can be set up within minutes and operates at unprecedented scale while reducing cost and complexity. The company is based in Silicon Valley and is backed by Greylock Partners, Sutter Hill Ventures, Accel Partners, Sequoia Capital, DFJ and Institutional Venture Partners (IVP).
Source: Sumo Logic