Scalyr, a log management and dedicated server monitoring service created and run by two former Google engineers, has raised $20 million in a Series A round led by Shasta Ventures with participation from earlier investors Bloomberg Beta, Susa Ventures and Heroic Ventures.

In real-time, Scalyr aggregates a company’s dedicated server logs and metrics into a centralized system for analysis and troubleshooting. Scalyr’s unique architecture would take advantage of the cloud’s economies of scale and allow for high efficiencies.

Drawing on years of experience processing massive datasets while working together at Google, Steve Newman and his co-founder Steve Czerwinski started Scalyr in 2011. Their aim was to simplify the business of understanding the behavior of modern, complex cloud stacks. From the start, they chose to build their data management engine from the ground up, avoiding the legacy document indexing technology used by competitors.

“This is one of the most exciting enterprise software companies I’ve seen,” said Jason Pressman, Managing Director at early-stage venture firm Shasta Ventures. “Not only is Steve a world-class founder and company builder, but he’s also a true engineer’s engineer. He’s knows first-hand the pain points in today’s agile DevOps groups and IT departments, and he founded Scalyr to help engineers – in real-time – solve these problems as fast as possible. Scalyr has a brilliant founding CEO, an amazing product and a loyal and growing customer base. We couldn’t be more thrilled to be partnering with Steve and his team to support them on their mission to build an extraordinary company!”

A lifelong engineer and serial entrepreneur, Steve Newman’s earlier startups include Writely, San Andreas Systems (a graphical web page builder acquired by Claris); Bitcraft (acquired by Macromedia); and Peninsula Game Works (makers of Spectre, the first 3D multiplayer game on the Macintosh).

Baidu, Zalando, Business Insider

“We’ve had a lot of success with early sales. Once customers see they can resolve issues 5X faster, it’s a no-brainer,” said Scalyr Founder and CEO Steve Newman, a repeat entrepreneur whose last company – Writely – was acquired by Google to become Google Docs. “Now we just need to spread the word, scaling up sales and marketing. We’re also expanding our engineering and product teams. We’ve only just begun to shake up operational visibility.”

Scalyr currently delivers its dedicated server monitoring service to approximately 140 customers worldwide including OkCupid, Zalando, Grab, CareerBuilder, Wistia, Business Insider, OkCupid, Baidu, and Giphy.

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