Grafana Labs Launches Enterprise Observability Stack

Grafana Labs Launches Enterprise Observability Stack

Grafana Labs has developed a comprehensive, open-source observability solution encompassing Prometheus for monitoring, Loki for log aggregation, and Tempo for distributed tracing. The company recently announced the release of enterprise-grade versions of these projects, packaged as a unified stack tailored to the requirements of large organizations.

Targeting Large-Scale Users

According to CEO Raj Dutt, this offering is specifically designed for the most substantial enterprises seeking greater control over their software infrastructure. “Our focus is on users operating at scale who desire a state-of-the-art observability platform built upon leading open-source technologies,” Dutt stated. “We are also incorporating significant feature enhancements in the enterprise edition, alongside round-the-clock support from the original software creators.”

Enhanced Integration and Security

A key feature of the Enterprise Stack is a suite of plugins enabling seamless data ingestion from prominent enterprise software vendors. These include integrations with platforms like Splunk, New Relic, MongoDB, and Snowflake. Furthermore, the stack delivers improved authentication protocols and robust security measures.

Self-Managed Deployment Option

Dutt emphasizes that this product is a self-managed solution, differentiating it from the company’s existing managed cloud offerings. “We provide two primary products: Grafana Cloud and the Grafana Enterprise Stack. Grafana Cloud represents our hosted deployment model, while the Enterprise Stack is licensed software that customers can deploy as they see fit.”

Hybrid Deployment Flexibility

Customers have the freedom to deploy the software on-premises, within colocation facilities such as Equinix, or on their preferred cloud provider. This flexibility extends to hybrid deployments, allowing organizations to strategically distribute components across different environments. “This allows for hybridization, where metrics might reside in the cloud, but sensitive log data is kept on-premise,” Dutt explained. “The composable nature of the stack facilitates these mixed deployments.”

Revenue Potential and Open-Source Adoption

The introduction of the enterprise version, alongside the existing cloud offering, creates a substantial new revenue stream for Grafana Labs. The popularity of the open-source projects serves as a powerful acquisition tool, providing a pathway into numerous organizations. Currently, Grafana is aware of over 700,000 instances of its open-source tools in operation globally.

Investor Confidence

While a relatively small percentage of open-source users typically convert to paying customers, the large existing user base provides a significant advantage and has attracted considerable investor interest. To date, the company has secured over $75 million in funding, including a $24 million Series A round in 2019 and a $50 million Series B round in 2020.