Every year Gartner publishes the Magic Quadrant (MQ) for Application Performance Management (APM). It is one of the most comprehensive reports covering APM vendors that can address all 5 of the dimensions Gartner has defined. There are many other tools and solutions that focus on specific areas, often more effectively than those in the research, but the list includes only those who provide a complete solution. Magic Quadrants are an info-graphic that displays who the competing players in a major technology market broken down into leaders, visionaries, niche players and challengers.
What’s so interesting is are the changes from 2012 to 2013, and maybe, how things are likely to shift again.
The APM marketplace is very dynamic! Two factors are making it so dynamic. The first, of course, is that digital experiences have become much more significant to our business strategies driven by Cloud, Mobile and Social. The second, a more traditional story, is that the pace of innovation in application performance management is so breakneck that many of the traditional leaders have lost their footing to newer more agile startups.
Let’s focus on the top right quadrant, the leaders quadrant. The 2013 research lists just 4 technology players on the leaderboard. They are Compuware, courtesy of their Gomez and Dynatrace acquisitions; Riversoft, courtesy of it’s OpNet acquisition; and two recently started APM innovators AppDynamics and New Relic. Two of the entrants are jazzy new startups hatched from the brain trust at Wiley Technologies (acquired by CA) – New Relic and AppDyamics. The other two have invested $600M and around $1B in acquisitions to grow into the leaders quadrant.
This is a significant change from the 2012 Magic Quadrant which listed IBM, CA, Quest (now Dell), and BMC in the leaders quadrant as well as the products from 2013. If we add HP and Microsoft to the list, not a single one of the BIG systems management players – HP, IBM, CA, BMC, MS or Dell for that matter – have innovated enough to be a leader. You now what that means :)
There has already been a significant amount of reporting about how New Relic is readying themselves for a likely 2014 IPO and the same can be said for AppDynamics.
Compuware’s business has been under fire for sometime while they try to transform themselves to more relevant businesses. Even Riversoft had recent rumors of a private equity bid of over $3B.
How long will 6 ginormous systems management vendors be without leading products in the hottest part of the IT Ops marketplace?
I’m guessing while we may have many of the same products in the 2014 leaders quadrant at least a couple will be operating as a part of IBM, HP, CA, BMC, Microsoft or Dell.
In fact, getting acquired again by CA might help New Relic’s CEO, Lew Cirne, out of his patent disputes over former Wiley patents.
What is a Gartner Magic Quadrant
See the 2013 Gartner Magic Quadrant for Application Performance Management from AppDynamics and register for a copy (scroll down below the form to see)