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AppDynamics nets $50M more to take on IT’s big boys

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AppDynamics, an application performance management company, has scored $50 million in Series D funding led by Institutional Venture Partners. Previous investors Greylock Partners, Kleiner Perkins Caufield & Byers and Lightspeed Venture Partners also contributed to the round, bringing the total AppDynamics has raised to $86.5 million.

The San Francisco company, which makes sure essential software applications of customers such as Netflix (S nflx) stay up and running, plans to use the funding to add salespeople and do more international business, the company’s founder and CEO, Jyoti Bansal, said in an interview.

Formed in 2008, AppDynamics competes with New Relic Inc., Compuware Corp. (s cpwr), Hewlett-Packard Co. (s hpq), CA Technologies (s ca), and Quest Software, which Dell Inc. (s dell) acquired last year. While application monitoring is hardly sexy, it is something that has become trickier as companies put more of their business software in the cloud and rely on a variety of application programming interfaces (APIs) to add value. When a cloud provider or an API from a third party goes down, it can take down essential applications or parts of them. And it’s not always clear what happened.

Thus the interest in companies like AppDynamics that are building tools out for the world of federated apps. Like most venture-backed enterprise startups, Bansal hopes to capitalize on this interest with an eventual IPO. Steve Harrick, a general partner at Institutional Venture Partners, will become an AppDynamics board observer, Bansal said.

“We’re building a board where we can be ready to be a public company a few years from now,” Bansal said.

In addition to the funding, AppDynamics said it will soon support PHP programming languages in addition to its support of Windows .NET and Java.

One Response to “AppDynamics nets $50M more to take on IT’s big boys”

  1. I’m not sure whether AppDynamics really does compete so directly with New Relic. NR seem to stand out amongst the others because of the way they handle pricing on the lower volume. They mix the best of enterprise + self service because “regular people” can sign up and pay via credit card but the bigger deals still get to the sales team. AppDynamics don’t seem to be addressing that with the requirement for contacting a rep for a quote (no price on their website).

    The NR approach matches their marketing strategy which is very much about getting the “grass roots” engineers to start using it as a way of selling into a business as opposed to more of an enterprise management down method.