February 09, 2012, 6:33 AM — The growing importance of reliable applications in the enterprise has opened a lucrative market opportunity for application performance management vendors, some of which have taken full advantage lately.
Two application performance vendors recently released gaudy, yet vague, growth numbers for 2011. AppDynamics claimed 400% growth in customer bookings, while rival BlueStripe boasted a 700% jump in revenues. And even though neither has released more detailed data behind these figures, analysts in the industry do not believe they are exaggerating, especially when considering the ongoing trends in the market.
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"With private companies, there is no way to know revenue numbers other than what they tell you," Julie Craig, research director for application management at Enterprise Management Associates, says. "However, many of the APM vendors I have spoken to recently do report triple-digit year-over-year growth, particularly this year. Budgets are freeing up somewhat, and part of the growth is a result of pent up demand. APM solutions are very hot right now."
Vic Nyman, co-founder and COO of BlueStripe, says his company, which he claims was in the "high-seven figures" for revenues in 2011 and will reach eight figures this year, has taken advantage of a market in which competitors have fallen flat.
Even as the CEO of a competitor himself, AppDynamics' Jyonti Bansal agrees with Nyman's assessment of the competitive landscape for APM tools. That's because many vendors trying to get in on the growing wave of customers in this space have marketed their broader network monitoring tools as those for APM, Bansal says. Customers, as a result, have gotten tripped up while trying to maintain an increasingly complex infrastructure without the right tools.
"It's kind of like operating a Boeing 757," Bansal says. "It's very powerful and very complex, but if you're operating without the right dashboard and cockpit or without auto-pilot, you can't really do it. It becomes very complex."