Network monitoring firm Kentik Technologies Inc. said Thursday it raised $ 40 million in new funding as recent Facebook Inc.
outage highlights the need for businesses to monitor network performance.
The company will use the funds to improve product functionality, increase its sales force and expand its network of partnerships, said Avi Freedman, CEO and co-founder of Kentik.
Kentik has raised $ 102 million since its inception in 2014. He declined to discuss his valuation.
The San Francisco-based company’s platform monitors the performance of enterprise and service provider networks to detect congestion, service degradation, outages, and anomalies that could indicate a problem. It sends alerts and recommends corrective actions, such as a better way to redirect traffic.
These capabilities allowed the company to witness Monday’s Facebook outage as it unfolded. The disruption occurred when Facebook engineers issued a networking command that accidentally removed the company’s data centers from its network. This led to a series of failures that took all of Facebook’s properties off the internet.
“This is a team with endless resources and some of the most talented people,” Doug Madory, director of Internet analytics at Kentik, told The Wall Street Journal on Monday. He said Facebook may not have applied enough scrutiny to its own backup solutions and processes.
“I think the biggest takeaway from the Facebook outage is that it’s important to understand not the network as a separate entity, but also in terms of all the app changes and all of the changes. configuration that goes into it, ”Freedman said.
Businesses are looking for smarter, more insightful management tools as they continue to accelerate their digital transformation efforts and their networks become more complex and critical, said Mark Leary, research director for analytics and intelligence. network automation at the research firm International Data Corp.
Kentik said his 300-plus customers include data storage and collaboration company Dropbox Inc., video conferencing company Zoom Video Communications. Inc.,
Major League Baseball and Akamai Technologies Network Services Company Inc.
Freedman noted that the company’s offering is delivered as a cloud-based platform, or software as a service, which sets it apart from many other network monitoring tools on the market.
In the network performance management market over the next five years, almost all of the growth is expected to come from SaaS solutions, said IDC’s Mr. Leary.
The advantage of SaaS, over a system consisting of on-premise hardware and software, is that the vendor can continuously provide updates and maintenance.
IDC said the enterprise market for network performance management tools such as Kentik is $ 2.4 billion in 2020 and is expected to grow 7% this year. Other companies in the market include Gigamon, NetScout Systems and SolarWinds.
Mr. Leary said the need for tools that can give businesses increased visibility on their networks is clear.
“If you don’t fully understand what’s going on on your network and what’s happening on the cloud part of your network (and your home network serves a remote employee) then you are working with a number of blind spots, ” he said.
Existing investor Third Point Ventures led the Series C round with participation from August Capital, Tahoma Ventures, DCVC, Engineering Capital and Vistara Growth and new investors Golub Capital, Gaingels and Delta-v Capital.
Write to John McCormick at [email protected]
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