Cloud SIEM and SOAR security software provider Sumo Logic continues to gain momentum with channel partners, and the company expects MSP engagements to gain even more momentum amid IT department labor shortages within end-customer settings.
The channel partner and MSP momentum statements surfaced December 5, 2022, during Sumo Logic's quarterly earnings call with Wall Street analysts. Among the anecdotes from CEO Ramin Sayar to note:
- More than two-thirds of Sumo Logic's new business went through the channel in the quarter.
- Sumo Logic expects that percentage figure to further grow as the business continues to shift to a partner-first strategy.
- As the company shifts from a "channel-fulfilled" to "channel-sourced" sales opportunities, it will free up sales cycles for Sumo Logic's direct sales teams, "improving the reach and efficiency of our sales organization."
- Sumo Logic expects MSPs to "play an increasing role going forward, particularly because of labor shortages, the concerns around the breadth of security kind of risks and services of attack and the technologies that are insufficient that are continuing out there gives us a great opportunity to go sign up new as well as continue to expand and differentiate their businesses."
Sayar frequently touts Sumo Logic's partner strategy during earnings call, and he made similar channel partner momentum statements in May 2022.
Sumo Logic Security Tools for MSPs and MSSPs
Sumo Logic's software has multiple use cases for MSP and MSSP partners -- including:
- Cloud security monitoring & analytics
- Cloud SIEM
- Cloud SOAR
- Audit and compliance
- Observability such as cloud log management, infrastructure management, application performance monitoring (APM) and software development optimization.
Sumo Logic's latest financial results generally beat Wall Street's expectations. For Q3 of fiscal 2023:
- Revenue was $79 million, up 27% from the corresponding quarter last year.
- GAAP net loss was $26.3 million.
Looking ahead, Sumo Logic expects full fiscal year 2023 total revenue to be $298 million to $299 million , up 23% from the corresponding quarter last year.
Cloud SIEM and Cloud SOAR: Crowded Markets
Generally speaking, customer demand for cloud-based SIEM (security information and event management) and SOAR (security orchestration, automation and response) remain strong. But the cloud SIEM and SOAR software segments are crowded with competition.
Still, Sumo Logic continues to have a successful partnership with AWS. In fact, Sumo Logic's entire SaaS platform is built atop AWS. Moreover, Sumo Logic is one of the first partners working on the Amazon Security Lake.