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Observability data software developer LogDNA, which today announced the $ 50 million Series D funding round, said it was developing a new platform that would enable more data-driven approaches in key enterprise areas such as security management. The company plans to debut the new platform in the second quarter of 2022, and the launch will represent a major expansion of vendor efforts in cyber security – beyond its origins in helping developers use log data, CEO Tucker Calvey told VentureBeat.
Observability data includes telemetry from systems – logs, metrics and traces – and can be used to determine if a system is healthy. If there is a problem with the system, observability data can help determine the solution. The concept of observability has emerged in recent years as a more advanced successor to monitoring, with the ability to answer different questions rather than a single continuous question.
Founded in 2016, LogDNA has faced observable data opportunities on behalf of developers after discovering that developers typically spend half their time digging through applications to obtain critical log information, Calvey said. The San Jose, California-based company has created a tool to streamline developer workflows that focus solely on one use of observable data, he said.
Now, with over 3,000 subscribers and a solution used by major partners such as IBM Cloud, LogDNA sees what it sees as its next big opportunity: developing a new observable data platform that could open up cases for additional enterprise use, such as That security. Management
The company describes the next product as observable data “pipeline” because it will route ingested and processed data from a focal point to any tool that works with the user. The platform’s ultimate promise is to enable developers and engineers, including security engineers, to “use the full power of machine data in their workflows,” LogDNA said in a news release.
The opportunity to move forward in cybersecurity comes when the enterprise struggles to understand the huge amount of data and numerous warnings that are generated by their growing cadre of security tools.
A recent survey by cyber vendor Trend Micro found that enterprises typically have an average of 29 different security tools, while the largest organizations have an average of 46. This has led to an inability to effectively prioritize security warnings, with many tools being reused or underused. , According to the survey.
“The enterprise has dozens of security tools, but they have few choices on how to take advantage of observable data on them, regardless of the tools they choose,” Calway said in an email to VentureBeat.
“Meanwhile, security professionals are drowning in warnings and red lights, and will have to scrutinize the data to do everything from stopping threats to fixing bad configurations,” he said. “By moving to the left with DevSecops, there is a desire to actively create sound security practices in business and technology operations, as opposed to constantly pursuing bad security postures.”
LogDNA’s next observable data pipeline will allow enterprise teams to ingest all their data on a single platform, generalize it and then route it to the right tools – enabling them to take “meaningful steps” on their observable data in real time, Calway said. . .
Enhancing managed security
Because of the need to simplify data collection, processing and routing in that space, the technology could benefit for security management, he said. “Security is a prime example where we’re mimicking what we’ve done for security engineers for developers who need access to the right data, in the right tools, in real time,” Calvey said.
For example, LogDNA currently processes more than 4 petabytes of log data per month for IBM Cloud, in a dozen global datacenters, according to Callaway. It now enables IBM Cloud to stream data over services like IBM QRadar and Splunk for “quick security management,” Calway said.
LogDNA sees Managed Security Service Providers (MSSPs) and Managed Detection and Response (MDR) providers as the first wave of users for the company’s Observability Pipeline, “to differentiate their security capabilities across the enterprise,” he said. The company has started bringing in MSSP design partners.
Observability The pipeline also has the potential to enable enhanced use of machine learning (ML) along with safety, Calway said. Companies that condense large amounts of data for MLs have “just taken the first step,” he said.
“Different ML functions require different types of data, and companies need to shape, form, trim, redirect and process data for each ML model to get the best results,” Calvey said. “For example, training a model focused on security bugs requires data focused on security bugs, not every piece of data the company has ever generated.”
As a result, LogDNA is considering routing ML technology for highly effective learning in individual models, he said. Notably, the approach to the data pipeline is also different from the “single pen of glass” approach taken by other players in observable data space, Calway said.
“Now that open systems, cloud-native architectures, and interconnected applications and data are common, a single glass pane is very limited,” he said. “It’s time to focus on the people who use the data.”
The data consumer should be able to capture the real-time value of the data in motion, not just the data remaining in storage, Calway said. And “they should be able to ingest and process data on a central point – the pipeline – and then take it to the tools where people are actually working, instead forcing them to break their workflow to use a different tool.” This is the problem that LogDNA aims to solve, “he said.
Security VC interest
Another indicator of LogDNA’s move to security – and the potential relevance of its solution to the security market – is that the new round of funding was led by security-focused venture firm KnightDragon. The firm’s co-founder and managing director is Dave DeWalt, a former CEO of leading cybersecurity vendors FireEye and McAfee.
DeWalt joined the board at LogdNA in April, where he serves as vice chair, although this round represents the first investment by KnightDragon in the company. In a blog post in April, DeWalt called LogDNA “one of the leading companies in solving the DevSecOps challenge for developers and application security teams today.”
In a news release announcing the funding today, DeWalt said LogDNA’s technology enables consumers to make “smarter, more cost-effective decisions” – and ultimately “reduce the average time spent searching and preventing cyber attacks.”
Two current investors, Early Capital and Emergency, participated in the Category D funding round. LogDNA did not disclose any evaluation details associated with the round. The company has now raised a total of $ 110 million.
LogDNA did not disclose revenue details for 2021, but previously recorded a 155% increase in revenue in 2020. The company was recently given no. Deloitte’s 2021 Technology Fast 500 ranks 112th among the fastest growing public and private tech companies, ranking the company for revenue growth of 1,293% between 2017 and 2020.
Towards partnership, IBM Log Analysis and IBM Cloud Activity Tracker services are powered by LogDNA technology.
In addition to serving as a partner, IBM is also a Cloud LogDNA customer. LogDNA’s technology provides centralized logging for the entire IBM cloud system, as well as for individual teams such as IBM Watson and The Weather Company. Other LogDNA customers include Asics, Lime, Better.com and Sysdig.
The company employs 124 people. It was founded by Chris Nguyen, who served as CEO from 2016 to 2020, and Lee Liu, chief technology officer. The founders previously co-founded two companies, JobLoft (acquired by OnTargetjobs) and TeamSave.
The idea for the company came when Nguyen and Liu were participating in the Winter 2015 set of Y Combinator working on an ecommerce marketing platform. Liu wrote on Hacker News in 2016 that “we’ve created a powerful logging system that many of our friends wanted” and “decided to pivot.”
Calvey, who previously held executive roles at Chef and Sauce Labs, took over as CEO of LogDNA in mid-2020, after serving as the company’s president.
The main difference
Competitors include publicly held companies Datadog and Sumo Logic – as well as venture-backed companies such as Cribl, which raised $ 200 million in Series C rounds in August, and Coralogics, which raised $ 55 million in Series C in July.
According to Calvey, the main differences include that LogDNA is “built for builders” such as application developers, site reliability engineers, and platform engineers. Looking ahead, adding an observable data pipeline to the company’s portfolio will make more difference, he told VentureBeat.
“Most of our competitors offer either a single pane of glass solutions or a data pipeline,” Calvey said. “Unlike them, LogDNA brings together the best-in-class log analysis and observable data pipeline – so that the enterprise can obtain machine data from any source, on any scale, at any destination, for any use case.”
This ultimately empowers “any data consumer” in the organization, he said.
Overall, “there is a clear enterprise-based demand for all data customers to make observable data work better,” Calvey said. “This investment allows us to accelerate our complete solution to the market.”
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