How LogLogic is linking operational IT to compliance

Computer system log files are deeply boring and unsexy, but it is amazing how quickly they can become fascinating when things go wrong.

Computer system log files are deeply boring and unsexy, but it is amazing how quickly they can become fascinating when things go wrong.

These days, there is a growing chance of that happening as companies try to deal with rising pressure to comply with regulation. Not only do they need to know what happened when things go wrong, they also need to satisfy auditors and inspectors that day to day operations are in compliance.

This is difficult to achieve. Complex computer systems produce daily millions of data items that record what happened and when. Printouts of the data take too long and require interpretation by rare and expensive skilled operators.

Moreover, even the technically gifted are seldom expert in more than a few systems. Integrating information from different log files to derive useful information on which to act remains tricky.

Many companies have tried to solve this problem. One betting its business on log file analysis is LogLogic, a San Jose company with a growing list of international offices. Its chief executive, Pat Sueltz Pat, was president of, an executive vice-president at Sun Microsystems, and general manager of the Java software division at IBM.

According to Sueltz, in the old days, analysing logs was left to hardcore IT, network and security professionals. But increasingly those who manage parts of the company, such as finance or human resources, also need to understand log records, often for compliance reasons.

She estimates that 30% of an enterprise's data is expressed in log files. That is a problem. "Very few people these days can read a core dump and understand what is going on," she says.

LogLogic has developed an appliance, now in its fourth version, that pulls log data from systems in real-time, and uses software to graph trends, highlight exceptions and track remote attempts to access system resources, among other things.

This enables operations staff, administrators and non-technical employees to work with log files and time-lines to create a storyboard that captures any chain of events surrounding a given incident.

Sueltz already has three of the top four telecommunications network operators as customers, as well as financial services firms, health care outfits, and government agencies.

The market is presently driven by the need to conform to regulations, security concerns and the need to run IT more efficiently because budgets are tightening, Sueltz says. "The logs are the place to start because they measure everything," she says.

But that is too much information. Until recently it has been hard to adjust the flood to what is meaningful. LogLogic has done this in two ways: one is to graph the data so that it is easier to identify trends, the other is to report events based on parameters the client sets that chime with their view of what is a risky event.

Even so, when the regulations, such as the Payment Card Industry Data Security Standard (PCI:DSS) mandates log analysis, that is manna for Sueltz. "The problem with regulations such as DSS and Sarbanes-Oxley is that so many people are talking at a high level, and not connecting with operations. About 25% of companies draw their compliance reports from audit reports. That is not good enough when things go wrong, and that is where we can come in," she says.

The economy is giving Sueltz another string to her bow. To get through the recession, more and more companies are changing the way they do IT. It is becoming important to establish operation base lines from which to measure changes. That means logging and analysing both the current state of the systems and the effect of changes.

This lets them answer questions about how much the virtualisation project has actually saved, says Sueltz.

One client, eco-friendly retailer The Body Shop, has used LogLogic, originally bought to satisfy PCI:DSS, to identify applications that hog bandwidth. A simple reconfiguration is now saving bandwidth upgrades.

Some regulations that drive log analysis

Health Insurance Portability and Accountability Act requires the establishment of national standards for electronic health care transactions and national identifiers for providers, health insurance plans, and employers. It also addresses the security and privacy of health data. The standards are meant to improve the efficiency and effectiveness of the nation's health care system by encouraging the widespread use of electronic data interchange in the US health care system.

Sarbanes-Oxley. Sarbanes-Oxley was a response to corporate and accounting scandals such as Enron and WorldCom. The act criminalises non-compliance with tougher corporate governance standards.

Payment Card Industry Data Security System (PCI:DSS). A set of security practices mandated by credit card issuers designed to stop card-based theft and fraud at the point of sale.

Basel 2. An international standard that defined how much capital banks need to put aside to guard against their financial and operational risks.

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