We don’t often read All Things Digital, one of the most overrated online publications (and which is neither “all things” nor “[only] digital” – discuss amongst yourselves). Typically, it is an egregious headline that draws our attention.
As this one did early today:
“Sumo Logic, Generating Big Data From Log Files, Lands $30 Million From Accel”
While ATD’s typically undiscerning and gullible readers were drawn to the words “Big Data” or, more likely, “$30 Million” (All Things Digital is a Wall Street Journal property, after all), we were drawn to – sad to say – “Log Files.”
Log files are now big data?, we wondered.
A log file is simply a running record of activity on a server. If there is a lot of activity, there is a lot of “data.” But this is not what is meant by “Big Data.”
Big Data is multiple formats of data from multiple sources. Nirvana is when we can tie Tweets and website visits and in-store cameras and mobile-wallet transactions for thousands of customers and prospects over a full month, for example.
Instead, we get this tripe:
“Today, a fascinating and fast-growing start-up called Sumo Logic announced that it has taken a $30 million [in venture capital]…”
What is “fascinating” is that someone would believe that the following explanation from Sumo Logic’s CEO really represents Big Data:
“Companies have been looking for a way to get ahold [sic] of that data and do a deep dive on the patterns that can be found in it…”
Maybe so. But a “deep dive” is not Big Data.
As of now, Sumo presents its Big Solution as a free cloud service. Whaaaa?
And just like most freemium offerings, Sumo reports a 5% uptake to paying customers. Investors are still dumping tens of millions of dollars into this type of business model?
What are Sumo’s plans for the $30 million, by the way? To hire lots of sales people. Which is odd, since if it is really a Big Wet Dream Data story, then customers should be beating down the doors.