NEA Blog

Elasticsearch: achieving the analytics dream

Analytics infrastructure has never been easy. As enterprise investors, we know this all too well—as data is generated from various applications and stored across disparate systems and databases, the barriers to translating all that data into insights can be massive. The rapid growth of data volume, variety, and velocity has only sharpened this pain point, and it’s no secret that delivering on the promise of analytics has proven to be an extraordinary challenge.

Data scientists and analysts need to spend less time cleaning and extracting data and more time getting at the underlying insights. That’s why we’re so excited to lead Elasticsearch’s $70M Series C financing—because they have proven to be in the very early innings of showing the world what’s possible when real insight can be derived from all types of data.

Elasticsearch is the company behind Elasticsearch, Logstash and Kibana—a unique end-to-end analytics stack that has truly changed how enterprises can think about their data. Founded by open source veterans Shay Banon and Steven Schuurman, Elasticsearch and its ELK stack have resonated with developers and enterprises to become one of the fastest-growing open source projects with over 8M downloads since launch. Beyond the rapid uptake of Elasticsearch, the broad range of use cases is particularly impressive.

From early stage startups to some of the biggest companies in the world, enterprises are using Elasticsearch to understand their data like never before. One Fortune 500 Company is processing millions of events per hour across multiple business lines through Elasticsearch to enable strategic decision making at speeds that are simply unprecedented. Another is processing nearly 1.5M log events per second to make sense of how their customers are interacting with their products in real time.

We estimate the analytics infrastructure market dominated by the likes of Oracle, SAP, and IBM to be nearly $15B annually. However, all of this spend has not helped enterprises quickly and efficiently cross the chasm between data and insight. This gap represents one of the biggest opportunities in today’s software landscape. We believe, along with the thousands of enterprises already using this powerful analytics, search and logging platform, that Elasticsearch is in the position to revolutionize this market.