Network observability startup Kentik wins $ 40 million
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Kentik, a network observability provider, today announced that it has raised $ 40 million in Series C financing led by Third Point Ventures with participation from August Capital, Tahoma Ventures, DCVC, Engineering Capital, Vistara Growth, Golub Capital, Gaingels and Delta-v Capitale. The funds bring the company’s total funding to $ 102 million, which co-founder and CEO Avi Freedman says will allow Kentik to invest more in his platform.
Managing and running cloud applications is an increasingly complex business in the company. In a recent survey, VMWare found that 86% of engineers believe applications are much more complex than they were five years ago, with 84% saying they use hundreds to thousands of compute instances in a single organization. Despite this, only half of all companies implement observability in their networks and systems, according to a New Relic report, in part because of cost concerns.
Kentik, based in San Francisco, Calif., Which was founded in 2014 by Freedman, Dan Ellis, Ian Applegate, Ian Pye, and Justin Biegel, analyzes network, cloud, host and container, and Internet routing performance for generate summaries. It manages digital experiences based on actual traffic, testing latency-sensitive automation, media, games, and other applications as frequently as every second.
“Kentik was founded by network and service operators and developers who have spent much of their working lives designing and managing large-scale networks… Leading web companies, enterprises and service providers told our founders that the analytics available to businesses at the cloud scale were sorely lacking. in the commercial market, especially around internet visibility and modern, cloud-native architectures, ”Freedman told VentureBeat via email. “The team founded Kentik to create what they always wanted: a scalable, powerful, easy-to-use and affordable network observability solution.
According to Gartner, observability is the evolution of monitoring into a process that provides insight into business applications, accelerates innovation, and improves the customer experience. Interest in the technology continues to grow as companies realize the business value of smart surveillance. According to one estimate, the cloud monitoring market alone will reach $ 1.97 billion by 2022, up from $ 821 million in 2017.
Kentik tests networks, containers, and hosts and alerts customers to potential performance issues. Using the platform, engineers can zoom into specific tests and learn the details of traffic paths to narrow down the source of a problem. Kentik also helps ensure that DNS and web servers stay up to date so websites and web applications are always available. Businesses get metrics showing server uptime, resolution time, and returned results, including IP addresses and records.
“With Kentik, you can see real-time performance of networks and applications side-by-side, identifying network issues or application stack issues. [You can also] Automate the testing and debugging performance of business-critical internal and SaaS applications to keep e-commerce and employees productive, ”Freedman continued. “[Customers] Be alerted to DDoS attacks with quick pivot for explorations and control plane integrations to report and stop attacks. [In addition, they can] audit and optimize network spend on cloud networks, service provider invoices and internal network links.
Kentik’s recently launched managed service, Kentik Cloud, allows users to create custom query charts with organized results to see the total image in a single view. It also provides a map of virtual private networks as well as topologies including gateways and interconnects in the cloud, between clouds, and on-premises.
In August, Kentik launched Kentik Labs, a hub to help developers reduce their average recovery time – the time it takes to recover when a problem arises – by providing open source network observability tools to tune networks. as a problem. . “Whether the issue is the application or the network, Kentik Labs offers tools to focus your efforts on the right layer with the right team,” said Pye, Chief Scientist at Kentik. “In addition, the development of open source technology will allow us to participate in adjacent communities and define the future of observability. “
Kentik’s more than 300 customers and thousands of users span digital businesses, enterprise IT departments, and service providers including IBM, Box, and Zoom. The company competes with Datadog, Netscout, Riverbed, OpsCruise, and Sosivio, as well as application observability platforms DeepFactor and Lightrun, among others. Kentik has 135 employees and expects to have close to 200 by the end of the year.
“Growth accelerated during the pandemic, as businesses become increasingly dependent on the network and the Internet for their core operations, and we launched new integrated products to test performance and provide visibility into the cloud. We don’t disclose revenue, but we will add millions of new double-digit business this year, ”Freedman said. “Our gross margin is over 85% and we’ve been in the over 80% range for years due to our own big data… backend and limited use of the public cloud. We were more conservative at the start of the pandemic and spent less than $ 5 million in 18 months, but we are massively increasing our investments across the business now. “
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