AI, search, observability and security are our key focus for the Indian market: Elastic CEO

The integration of search technology and artificial intelligence (AI) is transforming how organisations manage and analyse data. AI-powered search tools are enabling more informed and personalised decisions by effectively navigating extensive datasets and revealing intricate patterns and trends that traditional approaches may overlook. US-based enterprise search company, Elastic’s approach to enterprise search has evolved significantly with the integration of AI and generative AI.

In an interaction with TechCircle, Ashutosh Kulkarni, CEO, of Elastic, the company behind Elasticsearch, explains how the company focuses on enterprise data, employing distinct algorithms and technologies that differentiate its services. Kulkarni further discusses the company's plans for India and the primary areas of focus within this market.

How has business growth been in India in the last one year and what has been your primary focus?

India ranks as one of our fastest-growing regions globally. It is our second-largest base after the US and comprises a significant double-digit percentage of our workforce. Our operations here include R&D and various functions like support, marketing, and finance, with our largest office in Bangalore and additional offices in Delhi and Mumbai. Last fiscal, we reported nearly $1.5 billion in revenue, with around 3,500 employees and over 20,000 global customers, including more than half of the Fortune 500. We’re working with companies across payments, fintech, logistics, large banks, telecommunications, and automotive companies. These customers engage us for AI, search, observability, and security. India is a key market for us due to its scale and diversity, with public-private partnerships significantly transforming sectors like finance through UPI (Unified Payments Interface) and eKYC (electronic Know Your Customer) initiatives. The profound impact of technology in areas like fintech, healthcare and logistics presents Elastic with substantial opportunities.

What is Elastic's approach to enterprise search by leveraging AI? 

The integration of search technology and AI is already changing data management and analysis in organisations. Generative AI has further revolutionised data interaction, allowing for a more intuitive, conversational query process. Whereas traditional search requires users to input queries and sift through results, Generative AI enhances user experience through semantic search. Meesho for example uses AI to understand user intent better, improving product search accuracy and boosting conversion rates, particularly for users in smaller cities accessing diverse products via mobile. At Elastic, we facilitate Generative AI applications by integrating all company data into our platform, thereby enhancing semantic search. For instance, an Indian employee engagement Software-as-a-Service (SaaS) company enhances its internal search capabilities using our Generative AI technology. A major automotive company developed an internal chatbot to query observability data, while a recruitment platform employs our semantic search features to improve their application’s search functions.

What are some common challenges you face in the Indian enterprise search market vis-à-vis your competition?

While we enjoy a strong position in terms of reach and brand recognition, what truly concerns me is not the competitive landscape, but rather how we can continue to facilitate new use cases for customers across the globe. For instance, in India, the linguistic landscape is significantly more complex than in the United States, where most businesses typically cater to two languages — English and Spanish, due to the substantial Spanish-speaking demographic. India, on the other hand, recognises 22 official languages and nearly 1,800 dialects, presenting a far greater challenge. Moreover, a considerable number of individuals in India prefer verbal communication over written text for various reasons. They tend to favour speaking rather than typing. Therefore, the real challenges and complexities lie in developing technologies such as text-to-speech and speech-to-text systems, as well as transformers and language models that can effectively handle diverse languages and dialects. This is where we are concentrating our efforts above all else.

Cyber security is paramount in enterprise search, especially when it comes to sensitive business data. As an enterprise search company, what is your key focus on cybersecurity?

From protecting data security and privacy, implementing strong access controls for authorised users, regularly updating software to fix vulnerabilities, and complying with regulatory standards to safeguard sensitive information, we play a significant cybersecurity role, with 25% of our business driven by security-related use cases. Our security information and event management (SIEM) solution that helps organisations detect and respond to security threats in real-time, utilises Generative AI to help security teams differentiate between alerts more effectively, transitioning from an 'alert view' to an 'attack view,' which enhances their response to actual threats. We are actively advancing our cybersecurity initiatives in India and globally.

What are your hiring or upskilling plans in the country in the coming months?

While we cannot mention specific numbers, we are actively hiring and upskilling in India, especially in the areas of AI advancements. Recently, we hosted a CXO panel in New Delhi with representatives from various organisations discussing AI, highlighting the growing need for developers with advanced AI skills. We are prioritising advanced training for our engineers and are committed to equipping customers’ teams to thrive in this AI-driven landscape.

What will be your key areas of focus for India over the next year?

The scale, diversity, entrepreneurial spirit, and government initiatives are driving a remarkable transformation, especially in the fields of technology and AI. This makes India an exciting place to be. Our primary focus for India in the next 12 months will be on AI and GenAI initiatives, apart from search, observability, and security. We are investing here not only for R&D but as a business and a market. We expanded our cloud business by 30% last quarter and our overall business grew by 18%. Given the abundant opportunities in India, we anticipate our investments here will exceed our global growth. Our global expansion naturally involves team growth, and we expect our investments in India to keep pace with our overall expansion. We are also working extensively with the public sector and expect to gain more clients in this sector in the coming months.