The Cloudcast #162 - Building and Managing Scalable SaaS Services
from The Enterprise AI Show
28m 36s
Menage Chaudhary, CTO and VP of Engineering at Lugley, shares his journey from building early integration products at Castiron to pioneering a cloud-native, scalable SaaS log management platform called Logly. He emphasizes that Logly was designed from the ground up as a robust, enterprise-grade SaaS solution with zero data loss, real-time search capabilities, and resilience to unpredictable traffic spikes. Drawing from his experience in evolving product form factors—from physical appliances to virtual and cloud—Chaudhary highlights that scalability and reliability must be foundational, not secondary, in SaaS development. Key customer needs include preserving logs during outages, enabling post-incident analysis, and detecting issues proactively through alerts. He views AWS’s entry into log management as a positive market validation, positioning Logly as a strategic partner rather than a competitor due to its deeper functionality. The conversation underscores a broader industry shift: companies are increasingly moving away from managing infrastructure themselves, opting instead for scalable, reliable SaaS services that focus on delivering core product value. This aligns with the modern DevOps and SaaS paradigm, where operational burden is outsourced and customer focus remains on product innovation and performance.
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Cloudcast Media presents from a massive studio in Rally, North Carolina.
This is the cloudcast with Aaron Duff and Brian Brasley bringing you the best of cloud
computing from around the world.
Good morning, good evening, where we are and welcome to another episode of the cloudcast.
We're coming to you live from our massive studios here in Rally, North Carolina.
Unfortunately, Brian is a little under the weather tonight, so it's just myself.
But we've got a great guest this evening.
We've said for a while that we want to dig more into the ITOPS ecosystem and the breadth
of services that really enable more robust web-scale applications, and tonight we're going
to dig into that in two different ways, both how to build scalable SaaS services and
to leverage very cool service that everyone really needs today.
And with that, we've got Menage, Chaudhary, CTO, and VP of Engineering at Lugley.
How are you doing, Menage?
I'm doing great, thanks Aaron for inviting me on the show, I really appreciate you and
cloudcast for inviting me.
Thank you.
Thank you very much.
So, you actually, Menage, both you and your team came very highly recommended to us by
the team over at EvidentIO.
And we also learned about your service at the AWS Summit up in New York City.
So tell us a little bit about your background and how it eventually led you to Lugley.
Absolutely.
I can do that.
So let me first introduce myself and then give you a little brief about Lugley.
I joined Lugley eight months ago, actually even before I talked Lugley and why I joined
Lugley, let me talk about my prior experience and what I did in the past.
I think that they'll give a little bit more background and color to the SaaS offering.
We are building at Lugley and how we are building that robust nature of SaaS offering.
So I joined Castiron system in 2003 as an engineer.
I joined the company when there was not a whole lot of a product.
Product was there, but it not functional, there's no customer.
So from there, we built three different products at Castiron.
It was Castiron was an integration company.
It was trying to solve the integration needs of the customer.
In those days, the integration products like Typco Webnitha's Vitria, they used to cost
$1 million and then $2 to $3 million in professional services and then somewhere your two systems
start talking to each other.
So in Castiron, the first product we built was a physical appliance where we said you take
this appliance, put it into your network and your integration needs will be solved.
And as the virtualization technology start picking up in 2006, our customers start saying,
you know what, it's very hard for us to bring this physical appliance.
When you give us something which we can put on our virtual infrastructure because we
have spent so much money.
So what we did was we build a virtual appliance for the same product.
And the cool thing about what we did there was a single code base offering which has
same functionality, same feature, same price, but two different form factor.
In 2008, the cloud wave got picked up and our customer said, you know what, now we don't
even need your virtual appliance.
We want something which we basically can connect from the cloud and our integration needs
get solved.
So we built first multi-attent and completely SaaS-based integration offering and we released
that product in 2009.
So in 2009, we offered three different form factor of same product, customer can choose
whichever one they like.
And in 2010, IBM came and acquired us and it was one of the very good acquisition of
IBM WebSphere Group in 2010.
At that time, I was running the whole engineering organization at Casta and System.
And then what's really interesting about that kind of history is how that very much mirrored
the industry in general going from physical to virtual to really more of as a service
kind of offering.
But what's interesting is you were actually able to successfully do all of those areas
and kind of leap forward as the market was leaping forward when many companies really
didn't.
Yeah.
I think and that's what is a testament to the Casta and team of basically keep evolving
themselves as market growth.
If we would have kept ourself as a physical appliance company, probably we would not have
as good exit as we had in 2010 and IBM came and bought us, right?
Sure.
And I think key thing is to basically there, I learned and I was basically telling team
when we were building our cloud-based offering and virtual appliance is, you know, the great
companies basically build the product on a single core base have same features and have
same price point for customer.
And that's what we exactly did.
Some of our customers said, you know what?
For physical servers, the cost should be higher and for SaaS, it should be cheaper.
And my answer to them was, you know, it is the value we provide to our customers is what
is the price. You can take physical appliance if you think that's going to benefit.
If you think virtual appliance, if you think SaaS, everything has the same feature.
You pick and choose VCharge for a value, right?
And that was huge for us.
So that was fun times at Casta and then I stayed at IBM for two years, built two different
product, apart from the original Casta and product, we built a Casta and Express, which
was again a cloud-based multi-tenant offering.
It was much lighter version of integration product, very, very easy to use.
And then I built another product called API Management for Casta and it was based on
the Casta and offering too.
And when I had those two product build at IBM and was in production, I left IBM and joined
GIF software in 2012.
I joined GIF software to gain, I built two different products from scratch and was part
of also doing an acquisition of a company and was basically evaluating and building the
big data offering by the time I left the GIF, all of those products went live into production.
And in the beginning of 2014, I joined Login and I'm really excited to be part of the
team.
This is an absolutely great time for a log management space.
If you see every single person has started to realize that how important the log management
has become, because more and more companies are becoming data-driven, more and more
company are analyzing how their customers are using their product, more and more companies
are making decision based on analysis of the data.
And more and more companies are understanding that the first big data problem is the log
management.
So that's very fair because without a doubt, it just makes sense that logging is generating
just a massive amount of data in an existing data center probably today.
It may or may not be aggregated and it is very much at times a needle in a haystack trying
to find the data you really needed at any given time.
And sometimes you really need that data, it becomes really important data to be able
to sift through and figure out what is going on.
And you as a company and a SaaS provider who rely on the log management system, I'm not
saying the on-premise companies don't rely.
But I think the key focus for any companies is not try to build a log management infrastructure.
should be focused on building the value to their product.
and not worry about log management and literally use systems like log Lee to do
analysis, alerting, debugging, figuring out what happens when the fire is
happening on their production system they should use log Lee and that that's
where the real value of log management is and what I have seen recently not only
big players are getting attracted and start noticing the log management space
but more and more small companies are realizing that log management they want to
have in a centralized place rather than them trying to manage on their own
because it's very expensive to build a log management solution with scales as
your company grows as your customer base grows or as your number of
server grows sure and that goes in with the common theme I hear a lot of times
these days you know from just about any startup of you know more and more you
hear about why would you own physical assets anymore and and whatever can
be taken and hosted or managed somewhere else it is it makes sense because
you're you're allowing yourself to focus on what really matters yeah and that
actually leads into so you actually have a very excellent talk and
presentation and we'll put a link to it in the show now it's on on critical
SaaS mistakes to avoid and you mentioned that scalability needs to be
priority number one how much different is building applications and services in
the cloud versus say using you know package software yeah so I think you hit the
nail on the head right that the difference between so if you look at the
difference between the package software versus SaaS offering right is the
reason any company come and use SaaS offering is they want to outsource the
management the scalability aspect the recovery aspect the backup aspect and
and basically don't want to worry about anything they basically sign up and
assume that this service is going to be available 24 by 7 and I don't have to
worry about anything whereas in package service in a package software you
hand over a CD or a software to a customer and as a vendor your job is done
you probably give them best practices on how to build an infrastructure which
will scale which will basically have all the nitty gritty's so when things go
haywire it can recover but guess who is managing the customer who bought from
the vendor is taking owners of that problem whereas in SaaS customer is giving
that owners to the vendor who's providing the service so in that that's why I
say scalability and reliability for any multi tenant SaaS application is the
P1 priority which each vendor of a SaaS application treat it as they should
not treat it as oh scalability is a side effort which I will worry about later
let me get my product out that is a huge mistake they should keep scalability as a
P1 feature which with every single release every single feature development
they keep in mind yeah and that's that's really interesting because you do
hear sometimes people actually say of you know the whole the whole concept of
minimal minimum viable product MVP of just get something out there and you can
figure out all that other stuff later but but yeah when it comes to scalability
really almost being that that most fundamental piece of if it's not right from
the beginning you're pretty much rewriting your application anyway right and
and and actually to talk about that for a little bit about you know the the
whole concept of building web scale SaaS applications so I'm kind of making
an assumption here but but I'm assuming logly was built from day one as a
web scale SaaS application and kind of asking you you know lessons learned or
or looking back is there anything that you would have either done differently
or you you know like oh this this is something right here that was a decision
we made that if we didn't make this decision things could have gone very bad
okay yeah that is correct the logly was built as a SaaS product from day one
and we will always be a SaaS company I at least in a near future I can see so I
think it'll be valuable for me to just give a little bit more background on
logly so logly was formed in September of 2009 founding team did a great job
in coming up with the first version of the product and we call it a generation
one product there was some scalability issue with that product and it was not
really ready to go to the enterprise level so we decided in 2012 that we
need to go and rebuild our product so that we are ready for next level of our
customer enterprise class product very stable and have a feature set which the
log management space is needed and the customer is aspiring for so we spent one
year rewriting the product and what we did is when we when we were rewriting the
product the goal set for the team was hey we need to write a product which
able to consume as much as our as much as the customer through logs at us we
should never drop the the log no matter at what rate customer sent to us right
and then write a simple to use user interface we not gonna build the API first
and then patch a user interface on top of it it is a consumer grade it's a
product for enterprise that doesn't mean it need to suck we need to write a
product which is for enterprise market with enterprise class feature with
enterprise stability but a fee the usability aspect of it is a consumer grade
simple to use low touch and people can come up to speed real quick and I'm so
proud that we did exactly that right now what what lesson I have learned in
SAS in general I would say is the key thing any company should be aware of is that
what they expect their customer to behave customer will never behave or use the
product the way they think or the way the SAS company think so solving the
unpredictable pattern of usage of your product is key so for example we
initially assume that when our customer will send the log data to us the
traffic pattern will be pretty much consistent but what we realize is the
pattern at which customer send traffic to us very humongous sometimes they're
sending us at a normal rate of 2000 events per second suddenly they have an
issue or a fire in the production and they start sending us at the rate of 200
thousand events per second or whatever I may be saying too much here but the
pattern is not saying so we need to build an infrastructure when this kind of
unpredictable load come from our customer we can shield well behaved customer
and not penalize for that right that that's huge yeah and so that's that's
interesting because if you think about it yeah this is potentially a very very
complex system on the back end because you have to ingest you have to parse you
have to analyze you have to tag data you have to multi-tenancy of isolating one
customer from another customer managing historical logs over time and then
exactly that visualize it build a an interface on top of all of this and
potentially give recommendations all in in real time and so can you give us a
sense of how that is set up behind the scenes and how all of that that magic
kind of happens yes definitely I can and I can give you a flavor of it I I don't
think it would be easy to give that information on and of course but it's as
you just explained it's a very complex system right and
One thing what customer expect in the log management system is the moment the log
even leave their premises, they should be searchable from our UI right there and then.
So they just don't want to see any latency in there. That's one. Two, they just don't,
they can expect less feature less functionality, but they want reliability where their data will
never get dropped right. So what we do behind the scene is we have built a massive infrastructure
to make sure that nothing get dropped. What that mean is when this massive inflow of event
come we can first first and foremost we can collect them at a network speed right our first entry
point to log system is collector and they are the most efficient piece of software we have written
so that no data get dropped the moment they grab the data they persisted and as you mentioned
after that we basically have written a model where there are massive number of processes sitting
which take from that persistent store where collector has put the data.
Pull them in to in their in their memory and start processing them start massaging them
and at every level when we do that massaging of the event or mapping it to a customer or parsing
it according to the rule we keep persisting so that we don't lose that data and the real thing is
even with that checkpoint the persistence after every business logic we have written a piece of
software which is so efficient that we need our customer demand of leaving their log from their
promises to be available to search in almost near real time. Gotcha and so based off of that what are
the probably the most common scenarios that companies are deciding that hey I need help
and a company such as logly can help me with this. Exactly so I think as I said right it's
there are a lot of scenarios but what what I would say is we land up mostly in a green field
situation where people have we people are not using any log management system right but
what happens is log the log management is first big data problem if you see how many times
when and a DevOps person get page at 3 a.m. in the morning with a pager call saying out of this
space or running low in the desk the first reaction of them is let me go to the var log directory
and see which are the logs I want to delete right so what they want to do is preserve that log
they don't want to prematurely get rid of the log so when they need most those logs they don't
have in their desk. Second thing they come to us for is to do analysis right when they when there
after a production issue if they want to analyze what happened so that they can build
that the tools to prevent similar kind of fires in the future they come and basically have
used logly for they come to us to prevent those fires so they they basically configure alert for
for a particular type of log which they can detect before a fire can hop happen so for example
they say if I see 404 more than five times in less than a minute send my DevOps person a pager
right a call so those are the kind of scenarios what customer come for one is before a fire they want
to preserve their log go look at the issues in a normal study course of action when they have
issue in the production they want to basically do a analysis of what happened in a production
and take a corrective action and the third is to protect fires and detect in advance through the
log that there is something going to happen wrong so they get notified before the fire happened.
Cool very cool now talk about AWS for a second logging really became more visible at AWS Summit when
AWS themselves announced centralized log management and and how does your world change when AWS
elevates a service that that quite frankly plays in your domain it's funny you you ask that
question right and I was I was mentioning in the beginning of this interview that we are seeing
more traction towards log management market by this big players and to be honest I'm glad to see
Amazon come in this place right it help us validate the market it help customer
realize that this market is huge Amazon will come and enter into space which is which is
basically not a million dollar market this is billions of dollars of market right and
we think that they will be playing a partner role with us rather than a kind of a competition
that's what high how I assume because their offering is more of an API where you can extract your
logs from we are much more than that and so I really expect to play as a partner rather than a
competition but it is good to have player like Amazon come into the log management space yeah and it
really it really does seem like more and more AWS is choosing to really build out that any services
they add really are more like foundational plumbing if you will and then you're building
something on top of it that would potentially attach to that as opposed to them trying to build
on full out applications and services they they definitely seem to be much more foundational
at this time exactly and I say I see that more of what they expose their logins
in some way that you might not want to do on Amazon alert at debugging on
and that's how I see it because you're breaking up again but actually we're kind of out of time
for this week so what I'll do is I'm just going to go ahead and close out the podcast
on behalf of Minaj if you are interested go ahead and go to logly.com or on Twitter at logly
and Minaj very much thank you thank you very much for your time this week if you like the show
please tell a friend or leave us a review on iTunes you can follow us on Twitter at the cloudcast
net are on the web at the cloudcast.net where you can find links to everything cloudcast thanks for
listening thank you for listening we hope you enjoyed the show and by you of course we mean the
NSA.
Podcast Summary
Key Points:
Menage Chaudhary, CTO and VP of Engineering at Lugley, has extensive experience in evolving integration and log management solutions from physical appliances to cloud-based SaaS offerings.
Lugley’s log management platform, Logly, was built from day one as a scalable, enterprise-grade SaaS product to ensure reliability, zero data loss, and real-time log searchability.
A core lesson from building Logly is that customer usage patterns are unpredictable—systems must be designed to handle sudden spikes in log volume without dropping or delaying data.
The platform prioritizes scalability and reliability as primary engineering goals, ensuring that every feature and release considers performance under heavy, real-world loads.
Common use cases include log preservation during outages, post-incident analysis, and proactive alerting to prevent future production issues.
Logly views AWS’s entry into log management as a market validation and sees it as a partner opportunity rather than competition, given differences in service depth and functionality.
The shift from on-premise software to SaaS reflects a broader industry trend of outsourcing infrastructure management for scalability and operational simplicity.
Successful SaaS development requires a single-code-base approach across form factors (physical, virtual, cloud) to maintain consistent features, pricing, and value for customers.
Summary:
Menage Chaudhary, CTO and VP of Engineering at Lugley, shares his journey from building early integration products at Castiron to pioneering a cloud-native, scalable SaaS log management platform called Logly. He emphasizes that Logly was designed from the ground up as a robust, enterprise-grade SaaS solution with zero data loss, real-time search capabilities, and resilience to unpredictable traffic spikes. Drawing from his experience in evolving product form factors—from physical appliances to virtual and cloud—Chaudhary highlights that scalability and reliability must be foundational, not secondary, in SaaS development.
Key customer needs include preserving logs during outages, enabling post-incident analysis, and detecting issues proactively through alerts. He views AWS’s entry into log management as a positive market validation, positioning Logly as a strategic partner rather than a competitor due to its deeper functionality. The conversation underscores a broader industry shift: companies are increasingly moving away from managing infrastructure themselves, opting instead for scalable, reliable SaaS services that focus on delivering core product value.
This aligns with the modern DevOps and SaaS paradigm, where operational burden is outsourced and customer focus remains on product innovation and performance.
FAQs
Lugley is a company that provides robust log management and analysis services. It offers a scalable, SaaS-based platform that helps companies collect, store, analyze, and visualize log data in real time.
Lugley built its platform from day one as a web-scale SaaS application, prioritizing scalability and reliability. The company focused on handling unpredictable traffic spikes without dropping any logs, ensuring enterprise-level stability and real-time access to data.
Log management is essential because it enables companies to detect issues early, troubleshoot production problems, and prevent recurring failures. With data-driven decision-making, logs provide visibility into system behavior and user interactions.
SaaS solutions eliminate the need for customers to manage infrastructure, scalability, backups, and recovery. They offer immediate availability, automatic updates, and 24/7 reliability, allowing businesses to focus on product development rather than operations.
Lugley uses a highly efficient, scalable infrastructure with persistent storage and real-time processing. Logs are ingested at network speed, processed in memory, and stored at every stage to ensure no data is lost during peaks or spikes in traffic.
Companies adopt Logly primarily to preserve logs during outages, analyze root causes of production issues, and set up alerts to detect anomalies before failures occur—such as monitoring for repeated 404 errors.
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