451 Research: Sumo Logic Eyes Opportunities that Leverage Growing Customer Base

With a solid user base, including both paying and non-paying customers, Sumo Logic is at the point it can think about ways to best leverage those users. One way it is doing so is by positioning itself as a central IT operations data repository that users in a variety of enterprise roles can access using tools of their choice. Also, the company is just starting to seek value in mining data about customers, both so that it can serve as a thought leader by sharing trend data and also to offer targeted recommendations to users based on activities of other users. Sumo Logic is in a strong position to execute on these initiatives. The 451 Take We think Sumo Logic has smartly identified opportunities that it’s able to pursue given the size of its customer base and the nature of its technology platform – opportunities that some of its smaller competitors might not be able to similarly execute on. A planned capability that offers targeted recommendations to users based on the actions of other users could be particularly useful to customers. Sumo Logic’s centralized IT operations data-store concept is another opportunity to build on its current customer base since it’s an idea best pitched as an expansion to existing customers. The company has work to do here to educate users on the benefits of such a repository, as well as in terms of lining up integrations with third-party products to access the Sumo platform. A significant challenge it faces is around describing the differences between its technology and that of competitors’ and demonstrating why customers should care. Focusing on differentiated capabilities that are meaningful to customers, such as a forthcoming security-focused product, should help.