Why Greenfield Invested in Coralogix: A Step Change in Data Analytics Tradeoffs
Written by: Shay Grinfeld, Raz Mangel and Meir Cohen
The amount of data created, captured, copied, and consumed worldwide grew an astonishing 57% in 2020. While some of this growth is surely Covid-related, it highlights one of the definitive characteristics of the era we live in.
There is an underlying rationale for the creation and movement of every piece of data, and putting those pieces together in a meaningful way holds value for businesses across functions.
However, the value of data is not immediately accessible. In order to extract value, data must be adequately captured, indexed, and stored before it is analyzed to produce the insights that facilitate better business decisions.
But what happens when a company’s data – and the associated costs to process and store the data – grow faster than its revenue?
The Challenges of the Data Explosion
Many companies now rely on massive troves of data that cost millions of dollars a year just to retain, and are experiencing exponential data growth at rates that exceed those of their revenues.
The misfortunate element of this phenomenon is that much of the data being stored will not contribute to any business insights. Streams of information are captured holistically, including wasteful characters such as spacebar keystrokes, time-stamps, and metrics that many organizations don’t find useful.
According to Cisco, this results in the fact that 99.5% of captured data is never queried or analyzed, contributing only to high data storage costs.
This ultimately forces organizations to either pay greater sums for greater storage capacity, or to free up space by deleting data.
This ‘cost vs. coverage’ tradeoff leads to unavoidable business sacrifices, whether it’s high costs and unsustainable expense progression, or failure to leverage a company’s full data set.
Coralogix has risen to meet this challenge, pioneering proprietary technology called Streama which analyzes the data before it is indexed and stored, enabling companies to retain only the elements of the data they and/or the Streama platform know will lead to business insights.
By facilitating the disposal of unnecessary data, Coralogix can help companies reduce data indexation/storage to a staggering 5-10% of its original, inflated volume.
This solution provides numerous significant advantages for companies that rely on large volumes of data, enabling them to cut storage costs, process more data, optimize performance, and receive actionable insights, all within moments.
Customers using the Coralogix platform report an average 70% total cost savings on their observability and monitoring solutions with more complete data coverage. This is a remarkable step change in the ‘cost vs. coverage’ tradeoff which provides significant business value.
Just the Beginning
The company’s technological breakthrough applies to data writ large, and can eventually provide value to a broad swath of applications.
While the platform initially focused Coralogix’s technology on the states of IT systems, the company has since rolled out additional solutions, such as CI/CD acceleration, and has identified additional areas that can benefit significantly from its technology, such as cybersecurity.
Having witnessed the outstanding execution displayed by CEO Ariel Assaraf, CTO Yoni Farin, and the Coralogix team over the last few years, we are confident in their ability to deliver on the sizable opportunity set before them.
Historically and thematically, our experience in the adjacent fields of IT Infrastructure, DevOps and Data Management & Analytics – having invested in category leaders such as Vast Data, BigPanda, and Quali – drives our appreciation of Coralogix’s ability to meaningfully innovate within a large field of critical importance and thereby drive the creation of meaningful value.
Ariel and Yoni’s team-building philosophy bases itself on three core qualities: “Hungry, Humble, and Smart”, and we as well aim to imbue these values into our mission to equip Israeli entrepreneurs with the tools, resources, and funds to build thriving technology companies.
In this context, we are thrilled to announce our partnership with Coralogix as it fulfills its mission to help companies break key analytics tradeoffs today while preparing for tomorrow’s data scale. We’re also looking forward to collaborating with current investors Red Dot Capital Partners, StageOne, Aleph, Eyal Ofer's O.G. Tech, Janvest Capital Partners, Maor Investments, and 2BAngels.