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Now An Established Leader in APM: AppDynamics

AppDynamics revenue surged 270% in first half of 2012

Before I jump into all the wonderful statistics, achievements and accolades AppDynamics has had recently, I first want to spend a minute talking about what we do.

When an application slows down or crashes in production, we tell customers why in minutes so they can fix the app, and keep their business up and running.

There you go–pretty simple, right? Except that it’s really not. And believe me 35+ vendors have been trying for the past decade. For me, the best compliment I’ve heard to date from a customer was “your stuff just works.” They generally don’t comment on our bells, whistles, pretty graphics or features; they just solve real-life problems with our software. Imagine that for a second–actually solving problems for customers. This simple benefit is pretty much why we’re disrupting the APM marketplace right now. We solve real-life problems for our customers today, and don’t sell them on BS, T-shirts, or tomorrow’s roadmap deliverables.

We’re not your average startup either, we want APM to be fun for us and our customers in how we go-to-market and deliver our message. Take me for example, how many startups today actually employ a real superhero? We might come across as a cheeky edgy startup, yet last week Gartner positioned AppDynamics as a leader in their application performance monitoring magic quadrant. That’s pretty unheard of to go from being nobody to debuting as an MQ leader in just two years! I guess this is what happens when you innovate, think different and begin to disrupt a market.

Let’s look at some key growth statistics in the first half of 2012 that justify why AppDynamics is now an established leader in APM:

270% Revenue growth in first half of 2012

What makes this number impressive is that this figure is on top of the 400% revenue growth we experienced back in 2011. I personally know of several APM vendors that would cry if they knew our revenue numbers right now.

Quadrupled Number of Pro Customers in last 12 months

Probably the most important growth statistic is our number of paying customers. Whats interesting is that we probably have the most diverse portfolio of APM customers in the market right now. Yes, we do both SMB and Enterprise so our potential buyer is really anyone with a mission-critical application, because we’re easy to deploy, easy to use and affordable. It’s the reason why we attract customers like Vodafone, Quantas Airways, Lockheed Martin, Roku and Reserve Bank of New Zealand. You’ll notice that many of those customers are not US-based, which again shows that we’re now a global force with a presence all around the world. 35% of revenue actually came from international sales due to the fact we doubled our international Value-Added Resellers (VARs). The last thing I want to mention is that many of our new customers actually ripped and replaced their existing monitoring solutions like CA Wily, Compuware dynaTrace and New Relic – proof indeed that many solutions on the market today are unable to monitor modern distributed applications in production.

Largest Java and .NET APM Deployments in the Market

You can only leverage the benefits of APM if its deployed and scales across your organization. Monitoring 1 server is a lot different than monitoring 1,000 servers. Today, AppDynamics has the largest Java APM deployment for a single customer application at over 7,000 JVMs. In addition, we also hold the largest .NET deployment for a single customer application at over 5,000 CLRs. These deployments aren’t the exception either; the next largest are well over 3,000 and 2,000 servers respectively, and the one thing all these deployments have in common – they all require a single management server to scale. Gone are the days of MoMs and server federation. In fact, one of our customers ExactTarget is speaking at App Jam Americas on how they went from “Zero to APM in 30 days” across their entire .NET platform spanning thousands of servers. When you’ve got customers willing to step up and tell their story, that’s a powerful message.

Largest Java and .NET SaaS APM Platform

AppDynamics Software-as-a-Service (SaaS) platform now monitors over 51 billion business transactions per day from Pro customers who chose to deploy via our SaaS platform. First, thats’ a lot of business transactions, and second, that’s a hell of a lot of metrics! You can’t offer an APM SaaS platform thats slow or doesn’t scale–to do so would be like selling a Ferrari with a Toyota Prius engine. Here’s the top 5 advantages of why SaaS-based APM might make sense for you.

Strategic Partnerships

In June this year, Microsoft announced a strategic partnership with six vendors to support the needs of Windows Azure customers. AppDynamics was selected as one of those six vendors to provide end-to-end visibility of application performance, across the range of Windows Azure services upon which customers deploy their applications. In terms of product validation and endorsement, it really doesn’t get any better than getting the Microsoft stamp of approval. Like I said previously, we’ve only been selling AppDynamics for two years and our .NET product was only launched a year ago – that’s huge progress in such a short period of time!

Innovative New Products

In Q1 we introduced End User Monitoring to our Pro edition, and became the first APM vendor to offer all five dimensions of APM in a single product, which can be deployed either as on-premise or via Software-as-a-Service (SaaS). This might not sound like ground-breaking stuff, but when you consider that other vendors in the market require 5+ products to deliver all five dimensions of APM, you can see why less can sometimes be more. If you want to deploy APM across your organization and application portfolio, then that’s a lot of installs, licenses and maintenance for 5+ products. Why create more complexity with multiple APM products when you can deploy a single product from an APM market leader? We also introduced AppDynamic Lite for .NET, another industry first for free production .NET monitoring.

Laser focused Customer Success Team

AppDynamics has established a loyal customer community combined with a Net Promoter Score (NPS) of 76, far exceeding the B2B enterprise software benchmark of 30. We know occasionally you might run into support incidents; it’s therefore our job to deal with any problems you have in a professional and timely manner – which is what you’d expect, right? I’ve seen our customer success team in action and I guarantee you wont find better customer service from any other APM vendor right now.

So what’s next then? As with all standard top secret information – I could tell you, but then I’d have to probably kill you, and I personally hate all that paperwork. One’s things for sure–we ain’t done yet and we know the road ahead is long but we also know it will be rewarding. We know what impact our product can have, so the more we’re deployed around the world the less slow applications we’ll all have to endure, and trust me we all know slow applications suck!

If you want to help AppDynamics become the undisputed leader in APM then drop us a line. We’d love to hear from you and we need great people to build a great company!

Thanks for reading.


Read the original blog entry...

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In high-production environments where release cycles are measured in hours or minutes — not days or weeks — there's little room for mistakes and no room for confusion. Everyone has to understand what's happening, in real time, and have the means to do whatever is necessary to keep applications up and running optimally.

DevOps is a high-stakes world, but done well, it delivers the agility and performance to significantly impact business competitiveness.

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