Data Startup e6data Secures $10M to Reduce High Data Analysis Costs

Sept. 17, 2024 — e6data has secured a $10 million Series A funding round to address the growing cost of data intelligence platforms for enterprises. The round, led by Accel Partners with participation from Beenext, aims to help businesses cut data analysis costs by up to 50%. e6data’s new compute engine enhances performance and offers a format-neutral approach, enabling companies to bypass ecosystem lock-in and improve ROI on their data platforms.

Data intelligence platforms allow enterprises to get insights from their own data to make business decisions and serve workloads including data engineering, analytics, machine learning, and now generative AI. With the growing volume of data and the need to extract maximum value from it, enterprises will be looking at a sizable bill to utilize this data. The total addressable market (TAM) for data and AI solutions is slated to touch $230 billion in 2025, with 60% of CXOs planning to increase their spending over the next year.

Vishnu Vasanth, co-founder and CEO commented: “This rapid increase has made data intelligence platforms the second largest IT spending category – behind only cloud spend for operational systems and application infrastructure. It’s fueling the meteoric rise of data warehouse and data lakehouse companies such as Snowflake and Databricks, and the rapid growth of corresponding offerings from AWS, Azure, and Google Cloud.”

However, as the spending grows, ROI concerns are reaching a boiling point. Enterprise technology leaders need a way to simultaneously increase performance and access new capabilities, while simultaneously controlling costs. They increasingly find there are no compelling alternatives to the status quo and are wary of emerging forms of ecosystem lock-in.

“Legitimate ROI concerns stand in the way of enterprises realizing the full potential of data & AI. Moreover, organizations cannot freely move lakehouse table formats, data catalogs, compute providers, and cloud providers without adverse price-performance impacts, the need for data movement, and cumbersome application migrations. We aim to address this through our work at e6data” added Vasanth.

To address these challenges, e6data has developed a new breed of “compute engine” for data intelligence platforms that helps enterprises amplify ROI on their existing platforms and architectures and escape ecosystem lock-in; all with zero friction to adoption in the form of zero data movement, zero application migration, and zero down-time.

e6data plans to expand access to its Lighthouse Customer Program, which offers the e6data solution as a managed service for the heaviest or most pressing use-cases of enterprise customers, complete with production support and professional services.

Data intelligence platforms like data lakehouses and warehouses are the foundation of all analytics and AI. At their core, they use distributed “compute engines”, whether open-source or vendor-backed, for every form of processing spanning ingestion, transformation, dashboards, reports, ML model training and inference, as well as RAG-based generative AI applications.

However, existing compute engines are built on monolithic architectures with centralized components for most aspects of a query or job’s life cycle. This creates challenges with respect to cost, performance, concurrency handling, and uptime – particularly on compute-intensive heavy workloads that enterprises increasingly encounter as they operate at production scale.

e6data’s founding team saw an opportunity to address these gaps with a new engine architecture and distributed processing model that is disaggregated, decentralized, and Kubernetes-native. The e6data engine outperforms leading commercial and open-source solutions across real-world heavy workloads and popular benchmarks: 5x higher performance, total cost of ownership (TCO) savings of more than 50%, and a truly format-neutral approach that negates ecosystem lock-in.

With a multi-disciplinary mix of distributed systems engineers, database builders, open source committers, and go-to-market leaders from Microsoft, ThoughtWorks, IBM DB2, Cisco, SAP, and Thoughtworks, the e6data team’s prior experiences in over 100+ large-scale data intelligence platforms gave them a first-hand view of the changing technology landscape, and the challenges facing enterprises as they scaled their data & AI needs.

Rajaraman Santhanam, COO of Chargebee added: “We’ve been collaborating with e6data across several internal and external-facing analytics use cases, all built on Chargebee’s multi-purpose, scalable data lakehouse platform. We are seeing exciting opportunities to innovate for our customers. We have successfully supported concurrencies of over 1,000 QPS on near real-time (NRT) data and complex queries while maintaining client latencies of less than 2 seconds. Other lakehouse engines we evaluated struggled to achieve this level of performance and scalability, despite being more resource intensive.”

With its unique offering, e6data hopes to level the playing field for customers by negating the immense pricing power a handful of vendors enjoy due to various new forms of compute ecosystem lock-in at different layers of the data stack. Organizations cannot freely move lakehouse table formats, data catalogs, compute providers, and cloud providers without adverse price-performance impacts, the need for data movement, and cumbersome application migrations.

About e6data

e6data is a startup that has developed a high-performance lakehouse compute engine for enterprise data analytics. Founded in 2021 by a team of experienced technologists, e6data helps amplify ROI on their existing platforms and architectures and escape ecosystem lock-in; e6data’s new generation of SQL engines powers 5x higher performance, 50% lower Total Cost of Ownership and zero-friction adoption. The product integrates seamlessly with all major data lakehouse formats, data catalogs and governance frameworks, SQL standards and dialects, and object stores, and cloud providers. It has a team strength of over 60 and has signed up publicly listed Fortune 500 enterprises as well as unlisted unicorns and decacorns as customers.

Source: e6data