monitoring
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Two months ago, Kubernetes observability platform Pixie Labs launched into general availability and announced a $9.15 million Series A funding round led by Benchmark, with participation from GV. Today, the company is announcing its acquisition by New Relic, the publicly traded monitoring and observability platform.
The Pixie Labs brand and product will remain in place and allow New Relic to extend its platform to the edge. From the outset, the Pixie Labs team designed the service to focus on providing observability for cloud-native workloads running on Kubernetes clusters. And while most similar tools focus on operators and IT teams, Pixie set out to build a tool that developers would want to use. Using eBPF, a relatively new way to extend the Linux kernel, the Pixie platform can collect data right at the source and without the need for an agent.
At the core of the Pixie developer experience are what the company calls “Pixie scripts.” These allow developers to write their debugging workflows, though the company also provides its own set of these and anybody in the community can contribute and share them as well. The idea here is to capture a lot of the informal knowledge around how to best debug a given service.
“We’re super excited to bring these companies together because we share a mission to make observability ubiquitous through simplicity,” Bill Staples, New Relic’s chief product officer, told me. “[…] According to IDC, there are 28 million developers in the world. And yet only a fraction of them really practice observability today. We believe it should be easier for every developer to take a data-driven approach to building software and Kubernetes is really the heart of where developers are going to build software.”
It’s worth noting that New Relic already had a solution for monitoring Kubernetes clusters. Pixie, however, will allow it to go significantly deeper into this space. “Pixie goes much, much further in terms of offering on-the-edge, live debugging use cases, the ability to run those Pixie scripts. So it’s an extension on top of the cloud-based monitoring solution we offer today,” Staples said.
The plan is to build integrations into New Relic into Pixie’s platform and to integrate Pixie use cases with New Relic One as well.
Currently, about 300 teams use the Pixie platform. These range from small startups to large enterprises and, as Staples and Pixie co-founder Zain Asgar noted, there was already a substantial overlap between the two customer bases.
As for why he decided to sell, Asgar — a former Google engineer working on Google AI and adjunct professor at Stanford — told me that it was all about accelerating Pixie’s vision.
“We started Pixie to create this magical developer experience that really allows us to redefine how application developers monitor, secure and manage their applications,” Asgar said. “One of the cool things is when we actually met the team at New Relic and we got together with Bill and [New Relic founder and CEO] Lew [Cirne], we realized that there was almost a complete alignment around this vision […], and by joining forces with New Relic, we can actually accelerate this entire process.”
New Relic has recently done a lot of work on open-sourcing various parts of its platform, including its agents, data exporters and some of its tooling. Pixie, too, will now open-source its core tools. Open-sourcing the service was always on the company’s road map, but the acquisition now allows it to push this timeline forward.
“We’ll be taking Pixie and making it available to the community through open source, as well as continuing to build out the commercial enterprise-grade offering for it that extends the New Relic One platform,” Staples explained. Asgar added that it’ll take the company a little while to release the code, though.
“The same fundamental quality that got us so excited about Lew as an EIR in 2007, got us excited about Zain and Ishan in 2017 — absolutely brilliant engineers, who know how to build products developers love,” Benchmark Ventures General Partner Eric Vishria told me. “New Relic has always captured developer delight. For all its power, Kubernetes completely upends the monitoring paradigm we’ve lived with for decades. Pixie brings the same easy to use, quick time to value, no-nonsense approach to the Kubernetes world as New Relic brought to APM. It is a match made in heaven.”
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In the monitoring world, typically when you spin up a new instance, you pay a fee to monitor it. If you are particularly active in any given month, that can result in a hefty bill at the end of the month. That leads to limiting what you choose to monitor, to control costs. New Relic wants to change that, and today it announced it’s moving to a model where customers pay by the user instead, with a smaller, less costly data component.
The company is also simplifying its product set with the goal of encouraging customers to instrument everything instead of deciding what to monitor and what to leave out to control cost. “What we’re announcing is a completely reimagined platform. We’re simplifying our products from 11 to three, and we eliminate those barriers to standardizing on a single source of truth,” New Relic founder and CEO Lew Cirne told TechCrunch.
The way the company can afford to make this switch is by exposing the underlying telemetry database that it created to run its own products. By taking advantage of this database to track all of your APM, tracing and metric data all in one place, Cirne says they can control costs much better and pass those savings onto customers, whose bills should be much smaller based on this new pricing model, he said.
“Prior to this, there has not been any technology that’s good at gathering all of those data types into a single database, what we would call a telemetry database. And we actually created one ourselves and it’s the backbone of all of our products. [Up until now], we haven’t really exposed it to our customers, so that they can put all their data into it,” he said.
New Relic Telemetry Data. Image Credit: New Relic
The company is distilling the product set into three main categories. The first is the Telemetry Data Platform, which offers a single way to gather any events, logs or traces, whether from their agents or someone else’s or even open-source monitoring tools like Prometheus.
The second product is called Full-stack Observability. This includes all of their previous products, which were sold separately, such as APM, mobility, infrastructure and logging. Finally they are offering an intelligence layer called New Relic AI.
Cirne says by simplifying the product set and changing the way they bill, it will save customers money through the efficiencies they have uncovered. In practice, he says, pricing will consist of a combination of users and data, but he believes their approach will result in much lower bills and more cost certainty for customers.
“It’ll vary by customer, so this is just a rough estimate, but imagine that the typical New Relic bill under this model will be a 70% per user charge and 30% data charge, roughly, but so if that’s the case, and if you look at our competitors, 100% of the bill is data,” he said.
The new approach is available starting today. Companies can try it with a 100 GB single-user account.
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Lightrun, a Tel Aviv-based startup that makes it easier for developers to debug their production code, today announced that it has raised a $4 million seed round led by Glilot Capital Partners, with participation from a number of engineering executives from several Fortune 500 firms.
The company was co-founded by Ilan Peleg (who, in a previous life, was a competitive 800m runner) and Leonid Blouvshtein, with Peleg taking the CEO role and Blouvshtein the CTO position.
The overall idea behind Lightrun is that it’s too hard for developers to debug their production code. “In today’s world, whenever a developer issues a new software version and deploys it into production, the only way to understand the application’s behavior is based on log lines or metrics which were defined during the development stage,” Peleg explained. “The thing is, that is simply not enough. We’ve all encountered cases of missing a very specific log line when trying to troubleshoot production issues, then having to release a new hotfix version in order to add this specific logline, or — alternatively — reproduce the bug locally to better understand the application’s behavior.”
With Lightrun, as the co-founders showed me in a demo, developers can easily add new logs and metrics to their code from their IDE and then receive real-time data from their real production or development environments. For that to work, they need to have the Lightrun agent installed, but the overhead here is generally low because the agent sits idle until it is needed. In the IDE, the experience isn’t all that different from setting a traditional breakpoint in a debugger — only that there is no break. Lightrun can also use existing logging tools like Datadog to pipe its logging data to them.
While the service’s agent is agnostic about the environment it runs in, the company currently only supports JVM languages. Blouvshtein noted that building JVM language support was likely harder than building support for other languages and the company plans to launch support for more languages in the future.
“We make a point of investing in technologies that transform big industries,” said Kobi Samboursky, founder and managing partner at Glilot Capital Partners . “Lightrun is spearheading Continuous Debugging and Continuous Observability, picking up where CI/CD ends, turning observability into a real-time process instead of the iterative process it is today. We’re confident that this will become DevOps and development best practices, enabling I&O leaders to react faster to production issues.”
For now, there is still a bit of an onboarding process to get started with Lightrun, though that’s generally a very short process, the team tells me. Over time, the company plans to make this a self-service process. At that point, Lightrun will likely also become more interesting to smaller teams and individual developers, though the company is mostly focused on enterprise users and, despite only really launching out of stealth today and offering limited language support, the company already has a number of paying customers, including major enterprises.
“Our strategy is based on two approaches: bottom-up and top-down. Bottom-up, we’re targeting developers, they are the end-users and we want to ensure they get a quality product they can trust to help them. We put a lot of effort into reaching out through the developer channels and communities, as well as enabling usage and getting feedback. […] Top-down approach, we are approaching R&D management like VP of R&D, R&D directors in bigger companies and then we show them how Lightrun saves company development resources and improves customer satisfaction.”
Unsurprisingly, the company, which currently has about a dozen employees, plans to use the new funding to add support for more languages and improve its service with new features, including support for tracing.
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In recent weeks, millions have started working from home, putting unheard-of pressure on services like video conferencing, online learning, food delivery and e-commerce platforms. While some verticals have seen a marked reduction in traffic, others are being asked to scale to new heights.
Services that were previously nice to have are now necessities, but how do organizations track pressure points that can add up to a critical failure? There is actually a whole class of software to help in this regard.
Monitoring tools like Datadog, New Relic and Elastic are designed to help companies understand what’s happening inside their key systems and warn them when things may be going sideways. That’s absolutely essential as these services are being asked to handle unprecedented levels of activity.
At a time when performance is critical, application performance monitoring (APM) tools are helping companies stay up and running. They also help track root causes should the worst case happen and they go down, with the goal of getting going again as quickly as possible.
We spoke to a few monitoring vendor CEOs to understand better how they are helping customers navigate this demand and keep systems up and running when we need them most.
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Epsagon, an Israeli startup that wants to help monitor modern development environments like serverless and containers, announced a $16 million Series A today.
U.S. Venture Partners (USVP), a new investor, led the round. Previous investors Lightspeed Venture Partners and StageOne Ventures also participated. Today’s investment brings the total raised to $20 million, according to the company.
CEO and co-founder Nitzan Shapira says that the company has been expanding its product offerings in the last year to cover not just its serverless roots, but also provide deeper insights into a number of forms of modern development.
“So we spoke around May when we launched our platform for microservices in the cloud products, and that includes containers, serverless and really any kind of workload to build microservices apps. Since then we have had a few significant announcements,” Shapira told TechCrunch.
For starters, the company announced support for tracing and metrics for Kubernetes workloads, including native Kubernetes, along with managed Kubernetes services like AWS EKS and Google GKE. “A few months ago, we announced our Kubernetes integration. So, if you’re running any Kubernetes workload, you can integrate with Epsagon in one click, and from there you get all the metrics out of the box, then you can set up a tracing in a matter of minutes. So that opens up a very big number of use cases for us,” he said.
The company also announced support for AWS AppSync, a no-code programming tool on the Amazon cloud platform. “We are the only provider today to introduce tracing for AppSync and that’s [an area] where people really struggle with the monitoring and troubleshooting of it,” he said.
The company hopes to use the money from today’s investment to expand the product offering further with support for Microsoft Azure and Google Cloud Platform in the coming year. He also wants to expand the automation of some tasks that have to be manually configured today.
“Our intention is to make the product as automated as possible, so the user will get an amazing experience in a matter of minutes, including advanced monitoring, identifying different problems and troubleshooting,” he said
Shapira says the company has around 25 employees today, and plans to double headcount in the next year.
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InsightFinder, a startup from North Carolina based on 15 years of academic research, wants to bring machine learning to system monitoring to automatically identify and fix common issues. Today, the company announced a $2 million seed round.
IDEA Fund Partners, a VC out of Durham, N.C., led the round, with participation from Eight Roads Ventures and Acadia Woods Partners. The company was founded by North Carolina State University professor Helen Gu, who spent 15 years researching this problem before launching the startup in 2015.
Gu also announced that she had brought on former Distil Networks co-founder and CEO Rami Essaid to be chief operating officer. Essaid, who sold his company earlier this year, says his new company focuses on taking a proactive approach to application and infrastructure monitoring.
“We found that these problems happen to be repeatable, and the signals are there. We use artificial intelligence to predict and get out ahead of these issues,” he said. He adds that it’s about using technology to be proactive, and he says that today the software can prevent about half of the issues before they even become problems.
If you’re thinking that this sounds a lot like what Splunk, New Relic and Datadog are doing, you wouldn’t be wrong, but Essaid says that these products take a siloed look at one part of the company technology stack, whereas InsightFinder can act as a layer on top of these solutions to help companies reduce alert noise, track a problem when there are multiple alerts flashing and completely automate issue resolution when possible.
“It’s the only company that can actually take a lot of signals and use them to predict when something’s going to go bad. It doesn’t just help you reduce the alerts and help you find the problem faster, it actually takes all of that data and can crunch it using artificial intelligence to predict and prevent [problems], which nobody else right now is able to do,” Essaid said.
For now, the software is installed on-prem at its current set of customers, but the startup plans to create a SaaS version of the product in 2020 to make it accessible to more customers.
The company launched in 2015, and has been building out the product using a couple of National Science Foundation grants before this investment. Essaid says the product is in use today in 10 large companies (which he can’t name yet), but it doesn’t have any true go-to-market motion. The startup intends to use this investment to begin to develop that in 2020.
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Chronosphere, a startup from two ex-Uber engineers who helped create the open-source M3 monitoring project to handle Uber-level scale, officially launched today with the goal of building a commercial company on top of the open-source project.
It also announced an $11 million investment led by Greylock, with participation from venture capitalist Lee Fixel.
While the founders, CEO Martin Mao and CTO Rob Skillington, were working at Uber, they recognized a gap in the monitoring industry, particularly around cloud-native technologies like containers and microservices. There weren’t any tools available on the market that could handle Uber’s scaling requirements — so like any good engineers, they went out and built their own.
“We looked around at the market at the time and couldn’t find anything in open source or commercially available that could really scale to our needs. So we ended up building and open sourcing our solution, which is M3. Over the last three to four years we’ve scaled M3 to one of the largest production monitoring systems in the world today,” Mao explained.
The essential difference between M3 and other open-source, cloud-native monitoring solutions like Prometheus is that ability to scale, he says.
One of the main reasons they left to start a company, with the blessing of Uber, was that the community began asking for features that didn’t really make sense for Uber. By launching Chronosphere, Mao and Skillington would be taking on the management of the project moving forward (although sharing governance for the time being with Uber), while building those enterprise features the community has been requesting.
The new company’s first product will be a cloud version of M3 to help reduce some of the complexity associated with managing an M3 project. “M3 itself is a fairly complex piece of technology to run. It is solving a fairly complex problem at large scale, and running it actually requires a decent amount of investment to run at large scale, so the first thing we’re doing is taking care of that management,” Mao said.
Jerry Chen, who led the investment at Greylock, saw a company solving a big problem. “They were providing such a high-resolution view of what’s going on in your cloud infrastructure and doing that at scale at a cost that actually makes sense. They solved that problem at Uber, and I saw them, and I was like wow, the rest of the market needs what guys built and I wrote the Series A check. It was as simple as that,” Chen told TechCrunch.
The cloud product is currently in private beta; they expect to open to public beta early next year.
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As we move from a world dominated by virtual machines to one of serverless, it changes the nature of monitoring, and vendors like New Relic certainly recognize that. This morning the company announced it was acquiring IOpipe, a Seattle-based early-stage serverless monitoring startup, to help beef up its serverless monitoring chops. Terms of the deal weren’t disclosed.
New Relic gets what it calls “key members of the team,” which at least includes co-founders Erica Windisch and Adam Johnson, along with the IOpipe technology. The new employees will be moving from Seattle to New Relic’s Portland offices.
“This deal allows us to make immediate investments in onboarding that will make it faster and simpler for customers to integrate their [serverless] functions with New Relic and get the most out of our instrumentation and UIs that allow fast troubleshooting of complex issues across the entire application stack,” the company wrote in a blog post announcing the acquisition.
It adds that initially the IOpipe team will concentrate on moving AWS Lambda features like Lambda Layers into the New Relic platform. Over time, the team will work on increasing support for serverless function monitoring. New Relic is hoping by combining the IOpipe team and solution with its own, it can speed up its serverless monitoring chops.
Eliot Durbin, an investor at Bold Start, which led the company’s $2 million seed round in 2018, says both companies win with this deal. “New Relic has a huge commitment to serverless, so the opportunity to bring IOpipe’s product to their market-leading customer base was attractive to everyone involved,” he told TechCrunch.
The startup has been helping monitor serverless operations for companies running AWS Lambda. It’s important to understand that serverless doesn’t mean there are no servers, but the cloud vendor — in this case AWS — provides the exact resources to complete an operation, and nothing more.
Photo: New Relic
Once the operation ends, the resources can simply get redeployed elsewhere. That makes building monitoring tools for such ephemeral resources a huge challenge. New Relic has also been working on the problem and released New Relic Serverless for AWS Lambda earlier this year.
As TechCrunch’s Frederic Lardinois pointed out in his article about the company’s $2.5 million seed round in 2017, Windisch and Johnson bring impressive credentials:
IOpipe co-founders Adam Johnson (CEO) and Erica Windisch (CTO), too, are highly experienced in this space, having previously worked at companies like Docker and Midokura (Adam was the first hire at Midokura and Erica founded Docker’s security team). They recently graduated from the Techstars NY program.
IOpipe was founded in 2015, which was just around the time that Amazon was announcing Lambda. At the time of the seed round the company had eight employees. According to PitchBook data, it currently has between 1 and 10 employees, and has raised $7.07 million since its inception.
New Relic was founded in 2008 and has raised more than $214 million, according to Crunchbase, before going public in 2014. Its stock price was $65.42 at the time of publication, up $1.40.
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Nearly everything about Netdata, makers of an open-source monitoring tool, defies standard thinking about startups. Consider that the founder is a polished, experienced 50-year-old executive who started his company several years ago when he became frustrated by what he was seeing in the monitoring tools space. Like any good founder, he decided to build his own, and today the company announced a $17 million Series A led by Bain Capital.
Marathon Ventures also participated in the round. The company received a $3.7 million seed round earlier this year, which was led by Marathon.
Costa Tsaousis, the company’s founder and CEO, was working as an executive for a company in Greece in 2014 when he decided he had had enough of the monitoring tools he was seeing. “At that time, I decided to do something about it myself — actually, I was pissed off by the industry. So I started writing a tool at night and on weekends to simplify monitoring significantly, and also provide a lot more insights,” Tsaousis told TechCrunch.
Mind you, he was a 45-year-old executive who hadn’t done much coding in years, but he was determined, as any startup founder tends to be, and he took two years to create his monitoring tool. As he tells it, he released it to open source in 2016 and it just took off. “In 2016, I released this project to the public, and it went viral, I wrote a single Reddit post, and immediately started building a huge community. It grew up about 10,000 GitHub stars in a matter of a week,” he said. Even today, he says that it gets a half million downloads every single day, and hundreds of people are contributing to the open-source version of the product, relieving him of the burden of supporting the product himself.
Panos Papadopoulos, who led the investment at Marathon, says Tsaousis is not your typical early-stage startup founder. “He is not following many norms. He is 50 years old, and he was a C-level executive. His presentation and the depth of his thinking, and even his core materials, are unlike anything else have seen in an early-stage startup,” he said.
What he created was an open-source monitoring tool, one that he says simplifies monitoring significantly, and also provides a lot more insights, offering hundreds of metrics as soon as you install it. He says it is also much faster, providing those insights every second, and it’s distributed, meaning Netdata doesn’t actually collect the data, just provides insights on it wherever it lives.
Live dashboard on the Netdata website
Today, the company has 24 employees and Tsaousis has set up shop in San Francisco. In addition, to the open-source version of the product, there is a SaaS version, which also has what he calls a “massively free plan.” He says the open-source monitoring agent is “a gift to the world.” The SaaS tool is about democratizing monitoring and the pay version is even different from most monitoring tools, charging by the seat instead of by the amount of infrastructure you are monitoring.
Tsaousis wants no less than to lead the monitoring space eventually, and believes that the free tiers will lead the way. “I think Netdata can change the way people perceive and understand monitoring, but in order to do this, I think that offering free services in a massive way is essential. Otherwise, it will not work. So my aim is to lead monitoring. This may sound arrogant, and Netdata is not there yet, but I think it can be,” he said.
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Serverless development has largely been a lonely pursuit until recently, but Serverless, Inc. has been offering a free framework for intrepid programmers since 2015. At first, that involved development, deployment and testing, but today the company announced it is expanding into monitoring and security to make it an end-to-end tool — and it’s available for free.
Serverless computing isn’t actually server-free, but it’s a form of computing that provides a way to use only the computing resources you need to carry out a given function — and no more. When the process is complete, the resources effectively go away. That has the potential to be more cost-effective than having a server that’s always on, regardless of whether you’re using it or not. That requires a new way of thinking about how developers write code.
While serverless offers a compelling value proposition, up until Serverless, Inc. came along with some developer tooling, early adherents were pretty much stuck building their own tooling to develop, deploy and test their programs. Today’s announcement expands the earlier free Serverless, Inc. Framework to provide a more complete set of serverless developer tools.
Company founder and CEO Austen Collins says that he has been thinking a lot about what developers need to develop and deploy serverless programs, and talking to customers. He says that they really craved a more integrated approach to serverless development than has been available until now.
“What we’re trying to do is build this perfectly integrated solution for developers and developer teams because we want to enable them to innovate as much as possible and be as autonomous as possible,” Collins told TechCrunch. He says at the same time, he recognizes that operations need to connect to other tools, and the Serverless Framework provides hooks into other systems, as well.

The new tooling includes an integrated environment, so that once you deploy, you can simply click an error or security event and drill down to a dashboard for more information about the issue. You can click for further detail to see the exact spot in the code where the issue occurred, which should make it easier to resolve more quickly.
While no tool is 100% comprehensive, and most large organizations, and even individual developers, will have a set of tools they prefer to use, this is an attempt to build a one-stop solution for serverless developers for the first time. That in itself is significant, as serverless moves beyond early adopters and begins to become more of a mainstream kind of programming and deployment option. People starting now probably won’t want to cobble together their own toolkits, and the Serverless, Inc. Framerwork gives them a good starting point.
Serverless, Inc. was founded by Collins in 2015 out of a need for serverless computing tooling. He has raised more than $13.5 million since inception.
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