Mountain View: California based next generation log management and analytics company, Sumo Logic has closed $15 million in Series B round of funding. The funding was led by Sutter Hill Ventures in participation from founding investors Greylock Partners and angel investor Shlomo Kramer.

The current round of funding has brought the total fund raised by the organization to $20.5 million. Sumo Logic plans to use the funds to accelerate its engineering and go-to-market activities. Co-Founded in April 2010 by Kumar Saurabh and Christian Beedgen, Sumo Logic is the next generation log management and analytics company that leverage Big Data for real-time IT insights.

“This is an exciting day at our company, as we emerge from stealth to unveil our solution and announce our series B financing. We believe that investors see what we see in the market: that as enterprises continue to log data at exponential rates, both behind the firewall and across external clouds, that data will need to be harnessed efficiently to deliver actionable business insights,” said Kumar Saurabh, acting CEO and VP of Analytics, Sumo Logic.

The company is going after a multibillion dollar market of IT operations and security -- as evidenced by success of companies like ArcSight and Splunk in this space. With nearly 30 employees, they are poised for explosive growth and are aggressively expanding their development, sales, and marketing team – they anticipate headcount will be more than double by the end of 2012. Commenting on the competition, Kumar adds, “Our competition is comprised of the incumbent premise-based log management solution providers. Whereas we are interactive with proactive insights-allowing customers to get answers from IT data in seconds. With its Push Analytics, Sumo Logic service also uncovers unforeseen errors.”

Prior to becoming the co-founder of Sumo Logic, Kumar was instrumental in designing and building the data analysis infrastructure of Mint.com. Before this, he was at ArcSight from 2001 to 2008 where he acted as Director of Engineering. Kumar has received his M.S. in Computer Science from Columbia University and B.S. in Computer Science from IIT Kharagpur.

“The log management market is ripe for disruption. My partners at Sutter Hill and I are excited to lead the series B financing at Sumo Logic and help build the industry’s leading cloud-based company,” said Mike Speiser, Partner at Sutter Hill Ventures.

Founded in 1964, Sutter Hill Ventures is a VC firm that finances technology-based startup and early-stage companies that pioneer products or services in growth markets, especially those in information technology and healthcare. Some of the portfolio companies are Network Appliance, Legato, Quantum, Linear Technology among several others.

“Enterprises continue to log data at exponential rates, both behind the firewall and increasingly across external clouds. We are proud to be founding investors in Sumo Logic in 2010, and look forward to continuing to work closely with the company’s team in delivering the industry’s leading next-generation solution,” says Asheem Chandna, Partner, Greylock Partners.

Founded in 1965, Greylock Partners has $2 billion under management. It has worked with several companies, 150 of which has gone for IPOs. Some of the portfolio companies include Ascend Communications, CheckFree, Data Domain, Legato, Media Metrix and several others.