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March 26, 2018 By Kalyan Ramanathan

Sumo Logic Gives Customers 171 Percent ROI: Forrester TEI Study

Enterprises today are adopting modern IT architectures and moving to the cloud. And for good reason. These new architectures offer agility, faster application code delivery, high scalable and elastic solutions. And to manage these applications — from an operational and security standpoint — enterprises are turning to machine data analytics solutions like Sumo Logic.

We know from constant customer feedback, as well as data from our annual State of Modern Applications in the Cloud report that our customers benefit from the continuous intelligence and insights that Sumo Logic’s machine learning and data analytics platform offers them, but could we put a finer, financial point on it?

Yes we can! And Forrester’s Total Economic Impact™ (TEI) framework helps us uncover those quantifiable benefits in terms (i.e dollars and sense) that every CxO can understand.

What is the Forrester TEI?

The Forrester TEI framework identifies the cost, benefit, flexibility, and risk factors that affect investment decisions into a analytics solution like Sumo Logic. Sumo Logic commissioned Forrester to conduct the TEI study1 and examine the potential return on investment (ROI) enterprises may realize by taking advantage of our machine learning and data analytics platform to improve the operations and security of hybrid and cloud-based modern applications.

Using a multistep approach, including interviews with Forrester analysts, Sumo Logic stakeholders, and four current Sumo Logic customers, Forrester was able to better understand the customers’ technological and business challenges and analyze how the Sumo Logic platform impacted overall operations and security.

The customers interviewed all offer B2B and B2C services, use either the cloud or hybrid architecture, and have implemented Sumo Logic within application development, testing, and production environments for a three-year period. They used Sumo Logic for a variety of tasks, including identifying operations issues and security threats, conducting root-cause analysis, automating issue response, gaining visibility into system health, and even discovering business insights about tools and users.

The findings were synthesized into a composite organization representative of their collective experiences

Key findings from real Sumo Logic customers

Overall, the study found that customers achieved fast time-to-value, flexibility and scale due to Sumo Logic’s cloud-native software-as-a-service (SaaS) solution.

From each of the interviews and data aggregation, Forrester concluded that Sumo Logic had the following three-year financial impact for the composite organization:

  • $6.4 million in benefits versus costs of $2.4 million
  • Net present value (NPV) of $4.1 million
  • ROI of 171 percent

Forrester TEI Quantifiable and Unquantifiable Benefits of Sumo Logic

Let’s break all of this down into simplified terms for two different categories: Development and operations (DevOps) and security operations (SecOps).

Benefits to DevOps teams

The biggest technical benefits to the DevOps team include the ability to reduce manual work, and free up time for employees to focus on more innovative and challenging tasks, and to more quickly identify and repair issues in development, test and production environments.

Specifically, the study found that by letting the Sumo Logic platform do all of the heavy lifting, 10 percent of minor issues were automatically identified and resolved, and the other 90 percent of issues were repaired in only 5 minutes. Critical issues that previously required four hours could be repaired in only 30 minutes by a six-person team.

As a result, DevOps teams were able to reduce customer support and maintenance costs, and eliminate legacy solutions. This not only allowed employees to be more productive, but it also delivered a better user and customer experience, improved retention and increased revenue by reducing the impact of issues. Teams were also able to more easily adopt microservices and containerization to increase business agility and speed.

“Without a log analytics solution like Sumo Logic, the mean-time-to-resolve issues would be exponentially longer.” VP of engineering, cloud software

Benefits to SecOps teams

Security and compliance have arguably become two of the most important and hardest parts of any organization’s IT department. With the continued onslaught of massive data breaches that expose sensitive customer data, there’s immense pressure for every company to become a security company in order to survive, but traditional siloed security approaches haven’t keep pace with the scale or velocity of dynamic modern cloud application delivery. As a result, enterprise IT teams are left with backlogs, blind spots and heaps of partially solved cases.

According to Forrester, by using Sumo Logic, SecOps teams identified and resolved security threats significantly faster, enabling the organization to recapture $645K in productivity. Automation using Sumo Logic resolved 25 percent of threats without manual intervention, saving two hours per threat.

By leveraging Sumo Logic’s security analytics platform, customers were able to reduce manual work to identify and resolve security threats as well as reduce the manual effort required during time-intensive security audits. This not only aided in the reduced risk of breaches, but also increased B2B sales by achieving and defending security certifications, such as PCI and ISO 27001.

“We identify issues so much sooner than we did before Sumo Logic. It’s ridiculous how much more powerful and responsive we are.” Sr. director of security, supply chain technology

Final thoughts

One of the recurring messages derived from the Forrester TEI is that, regardless of where customers are in their cloud journey, there’s one common theme — they’re all looking for a trusted partner to help them deliver high performance, scalable and always-on digital services built on custom modern architectures.

And I leave you with a testimonial from one of the four customers interviewed by Forrester, the senior director of security at a supply chain technology company: “I can’t understate the quality of Sumo Logic’s product and services — it’s a true partnership.”

To download and read the Forrester Total Economic Impact of Sumo Logic executive summary, visit: www.sumologic.com/resource/white-paper/forrester-tei-report/.

And if you are interested in exploring and quantifying the value that Sumo Logic can provide to you, please contact us at https://www.sumologic.com/contact-us/.


1The Total Economic Impact™ Of Sumo Logic, a February 2018 commissioned study conducted by Forrester Consulting on behalf of Sumo Logic

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Kalyan Ramanathan

Kalyan Ramanathan

Kalyan has more than 20 years of experience in software and marketing and brings a a deep understanding of the IT operations and management market.

Prior to Sumo Logic, Kalyan was the VP of Product Marketing at AppDynamics. He has also served as CMO at Crittercism, VP of Marketing at Electric Cloud and as Senior Director of Product Marketing at Opsware/HP.

Kalyan began his career at Intel and has an MBA from the Stanford Graduate School of Business.

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