If you doubt that application performance monitoring is gaining traction in the IT world, a recent Software as a Service (SaaS) system management sector ranking should dispel that idea.
According to IDC’s “Worldwide System Management Software-as-a-Service 2011-2015 Forecast and 2010 Vendor Shares” report, the application performance monitoring unit of Compuware ranked third behind HP and IBM as an SaaS vendor, with a revenue of $49 million.
Application performance monitoring is becoming recognized more and more as an indispensible tool in the IT manager’s toolbelt, and is almost a $6 billion market on its own. Recent moves in the APM sector certainly reflect that.
In July, Compuware paid $256 million to pick up APM developer DynaTrace Software, spending big on a company that pulled in $26 million over the prior 12 months. As the month drew to a close, CA Technologies snapped up subscription-based monitoring company WatchMouse for an undisclosed amount.
The demand for end user experience monitoring and business transaction management appears to be growing, and big companies like CA and Compuware are trying to take advantage. Application performance is tied driectly into all the things that makes a customer’s business transaction positive, affecting the bottom line through revenue, brand value, and overall customer loyalty.
APM is becoming increasingly important as SaaS growth is exploding, and along with it the user of cloud computing and mobile applications. That means that the primary user of business software is no longer the internal employee. At least, not solely. Your most important user can be the visitor on your web site, and if a poor application experience is the difference between a sale or no sale, APM can help tip the scales in your favor.
IT departments are starting to catch on, which is why we’re seeing all these big moves in the APM sector, and we are likely to see more similar moves in the future.