Learn more about the recent SnapLogic round of funding and new release from 451 Research: In September, the iPaaS vendor announced the fall 2014 release of its SnapLogic Elastic Integration Platform. In addition to productivity, performance and scalability updates to the iPaaS offering were new capabilities for 'big-data' acquisition, preparation and delivery. Shortly thereafter, in October, SnapLogic secured a $20 million funding round to grow its sales, marketing and operations efforts and continue to build out its connectivity platform for big data. The recent winter 2015 release is intended to harden the platform, making it more secure and adaptive. SnapLogic is revving the engines for a rapid start going into 2015. It seeks its fair share of what it believes to be a $500 billion market opportunity for large enterprise hybrid IT and big data integration.

1. SnapLogic series D funding and new
release readies the iPaaS vendor for a
2015 drive
Analyst: Carl Lehmann
12 Dec, 2014
In September, the iPaaS vendor announced the fall 2014 release of its SnapLogic Elastic Integration
Platform. In addition to productivity, performance and scalability updates to the iPaaS offering were
new capabilities for 'big-data' acquisition, preparation and delivery. Shortly thereafter, in October,
SnapLogic secured a $20 million funding round to grow its sales, marketing and operations efforts
and continue to build out its connectivity platform for big data. The recent winter 2015 release is
intended to harden the platform, making it more secure and adaptive. SnapLogic is revving the
engines for a rapid start going into 2015. It seeks its fair share of what it believes to be a $500
billion market opportunity for large enterprise hybrid IT and big data integration.
The 451 Take
SnapLogic's product investment strategy will be to enhance the security and scalability of its
iPaaS. It will also build out its SnapReduce to appeal to a broader range of 'citizen integrators'
who seek insight by accessing and analyzing big data. We believe this will likely cause the
vendor to rethink its enterprise strategy and enhance its partnership strategy. Regarding the
former, there is considerable upside in the iPaaS market that is not limited to large
enterprises. Small and midsized firms can benefit from simple iPaaS offerings as they
continue to make greater use of SaaS to run their businesses. Perhaps SnapLogic will revisit
its prior mid-market strategy to exploit such opportunity. Regarding the latter, the so-called
citizen integrators are also 'citizen business analysts' that need access to better analytic
engines and decision support tools. SnapLogic would benefit from a concerted outreach effort
to partner with such vendors. Doing so can expose its wares to their ecosystems and enhance
its appeal to citizen integrators and analysts.
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2. Context
San Mateo, California-based SnapLogic came to market in 2006, initially offering integration
services via its iPaaS to midmarket enterprises. In 2012 it revamped its strategy, turning away from
the midmarket to accelerate growth by targeting the integration needs of large enterprises. Soon
thereafter, the firm realized that its technology required enhancements to better serve that market.
It subsequently addressed these needs in the spring 2013 and winter 2014 releases of its Elastic
Integration Platform – a new technology framework that replaced its prior SnapLogic 3.7 platform.
Improvements at that time included time-saving capabilities for developers, such as viewing and
previewing server logs, large unstructured data records, and server file systems; visual indicators
for network connectivity status and monitor metrics of all integration points; support for
unstructured and streaming data management; and optimized in-memory processing of streaming
data.
In our last report on the vendor, we noted that future releases will continue to strengthen its
platform for large enterprise markets and that it will likely seek additional capital in, or around, the
time of its summer product launch. While it came a little later that expected, in October SnapLogic
announced the initial closing of a $20 million series D financing round led by Ignition Partners. This
brings the firm's total financing to $60 million. Also participating in the round were Andreessen
Horowitz, H. Barton Asset Management, Pharus Capital Management and Triangle Peak Partners.
SnapLogic remains engaged in an investment business lifecycle and therefore we believe it is
operating just shy of breakeven. Its staff remains roughly the same at 75 employees. Revenue was
not reported, but we estimate it to be at or near $10 million annually.
Strategy and products
Overall, SnapLogic's strategy is to provide a unified and adaptable platform to integrate big data,
cloud applications and APIs within and across enterprises. Its recent efforts strengthened its
SnapReduce and iPaaS offerings.
With the fall 2014 release, SnapLogic enhanced its SnapReduce big-data integration offering. With
it, integration developers can specify where integration processing can occur (in a cloud, behind the
firewall, and/or within a Hadoop cluster) – a key capability that enhances its competitive positioning.
It can also 'Hadoop-enable' a data flow with a single click, transform data flows into MapReduce
jobs that run on Hadoop, support parsing and formatting of additional Hadoop file formats (e.g.,
Copyright 2014 - The 451 Group 2

3. SequenceFile and RCFile), document (JSON) processing for MapReduce jobs and support Kerberos
authentication for reading and writing Hadoop Distributed File System (HDFS) data.
In SnapLogic's Elastic Integration Platform, dataflows execute in a data integration processing grid
it calls a 'Snaplex.' Until the fall release, there were two types of Snaplexes: a Cloudplex, which
executes cloud-to-ground integrations (SaaS to on-premises), and a Groundplex, which executes
behind-the-firewall integrations (we note that 90% of SnapLogic's customers are running behind the
firewall using its Groundplex). The fall release introduced a third, Hadooplex, that is a Snaplex
configured to enable a multi-source pipeline to run natively as a YARN application (YARN is a
distributed operating system for big-data applications) when running in a Hadoop cluster. Fall 2014
updates to SnapLogic's Elastic Integration Platform iPaaS include improved data mapping and
shaping capable of previewing data and its structure before and after it has been transformed,
cleaned or integrated. A new Data Mapper offers progressive schema loading, direct
schema-to-schema mapping and map-path highlighting – making it easier to work with complex
schema. Lifecycle management capabilities were also improved with pipeline versioning and
rollback features.
The just-announced winter 2015 release enhances security and lifecycle management capabilities
of its iPaaS. Encryption for account credentials was added for hybrid deployments using public key
infrastructure (PKI) technology. Self-service features were added for citizen integrators,
non-technical business professionals who need access to data for analytics and decision-making.
Developers can also create and test pipelines before moving them into production, and integration
projects can be promoted or rolled back as pipelines move through the development to test to
production lifecycle.
With each release, SnapLogic expands or updates its library of now more than 270 Snaps
(preconfigured integrations and connectors). With the fall 2014 and winter 2015 releases, new
and/or updated Snaps are available for Expensify, Java Message Service, Oracle, salesforce.com,
ServiceNow, SFTP, SOAP, Workday, Xactly, File Writer, XML, Salesforce Analytics Cloud, Sumo Logic,
SAP HANA, SAP BAPI, Google, HDFS, NetSuite and OpenAir.
Customers
SnapLogic is focused on three primary audiences for its offerings. It is targeting CIOs charged with
business transformation and untethered to legacy infrastructure, line of business or departmental
leaders that are expanding their use of SaaS offerings and require a simple means for
cloud-to-ground integration, and analytic teams struggling to make use of big data and emerging
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4. big-data analytics technologies.
SnapLogic reports 50 customers using the newer Elastic Integration Platform. Notable customers
include Xactly, Glance Networks and Adobe. Xactly (cloud-based incentive management) uses
SnapLogic iPaaS to automate integrations between Salesforce, Workday, NetSuite and Domo
Technologies. Glance Networks (desktop sharing and Web conferencing) uses SnapLogic to
synchronize the data provided by in-house Web systems with data from Salesforce to manage leads
and inside sales activities. Adobe (software) uses SnapLogic for internal citizen developers who
seek simple means to access and integrate with distributed dissipate data sources for improved
analytics.
Competition
SnapLogic has been building out new capabilities and hardening its platform for greater reliability to
better compete for large enterprise market share. Its chief rivals are Informatica, with its
PowerCenter ESB and Informatica Cloud, and MuleSoft with its Anypoint Platform. Another such rival
is TIBCO; however, that firm has struggled and recently was taken private. TIBCO customers are fair
game now for SnapLogic. With its new capabilities, SnapLogic is also in better position to rival
MuleSoft, which is lagging in big-data integration. Other rivals to SnapLogic with cloud-to-ground
iPaaS offerings include Dell Boomi, Jitterbit, Scribe and IBM's Cast Iron Live.
With its big-data strategy, SnapLogic is also positioning to rival Talend. Talend was early to the
big-data integration market. Perhaps too early, its big-data investments were slow to pay off,
causing the firm to restructure several times while missing the emerging iPaaS market – a service
it's likely to offer in 2015. So why then is SnapLogic getting into big data? Well, perhaps now the
time is right. With the inevitable exponential growth of big data on the horizon, nearly all
enterprises will have to deal with it in some way. They will expect their integration vendors to be up
to the task, more so now than in prior years.
It's important to note that API management vendors are playing a greater role in the integration
technology arsenal of enterprises. The API management market is undergoing some considerable
changes, with new vendors entering and emerging vendors adding new capabilities. A mutant of
sorts has recently arrived in the market that may change the strategy and behavior of many
traditional integration and newer iPaaS vendors. Cloud Elements seems to be a missing link that
bridges the iPaaS and API management markets and may cause SnapLogic to step up its nascent
API strategy in the coming quarters.
Copyright 2014 - The 451 Group 4

5. SWOT Analysis
Strengths Weaknesses
SnapLogic's Snap designs and design tooling
represent a simple means to craft and execute
rather complex and intelligent integration
processes that also afford a practical means for
integration reuse.
Selling integration technology and services to large
enterprises requires a considerable boots-on-the-ground
direct sales channel – something SnapLogic may now be
able to expand with its recent financing round. The firm
could also benefit from expanding its partner stable to
include more analytics vendors.
Opportunities Threats
The big-data market may be ripe now for
integration vendors like SnapLogic to safely to
enter. SnapLogic is also gearing up for
participation in the API management market,
which represents considerable opportunity to
attract new developers. All TIBCO customers
represent fair game for SnapLogic.
While SnapLogic's entry into big-data integration market
makes for a logical calculated strategy, it's unclear
whether enterprise buyers will make the financial
commitments necessary for such an investment to pay
off in the near term.
Copyright 2014 - The 451 Group 5

6. Reproduced by permission of The 451 Group; © 2014. This report was originally published within 451
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