IT Monitoring & Management Acquisitions of 2017 (So Far)

Sahil Khanna | Thursday June 8 2017

Leading enterprise IT technology vendors are increasingly focused on acquisitions as a means for staying competitive.

IT Monitoring & Management Acquisitions of 2017 (So Far)

When containers came along, enterprise IT vendors didn’t jump on the bandwagon. Why? You can’t really take a solution targeted at client-server computing and apply it to containerized environments. Furthermore, there’s no guarantee that this trend would be a success, and therefore, these companies couldn’t justify investing in it.

Startups, on the other hand, jump after emerging trends with a high-risk tolerance and a passion for innovation.

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Large IT technology vendors need to focus on adjusting and improving their current offerings to address the challenges of modern IT operations and application development, as well as the needs of evolving Ops and DevOps professionals.

In order for enterprise IT vendors to thrive in 2017, it’s crucial that they modernize their existing technology stacks, built for previous generation IT architectures. Large IT technology vendors need to focus on adjusting and improving their current offerings to address the challenges of modern IT operations and application development, as well as the needs of evolving Ops and DevOps professionals.

Success here requires many things — software-defined everything, integrate with everyone, modernized pricing models, modernized sales processes, and most importantly, strategic acquisitions.

The 2017 Acquisitions Leaderboard

In a previous blog — Why Can’t IBM, HPE, CA and BMC just build what you have?” — Steve Burton explains the logic behind why big companies choose to focus on Mergers & Acquisitions over new product development. And nearly halfway through 2017, we have already seen significant plays in the acquisition of IT monitoring and management companies.

Let’s take a look at some of the notable acquisitions of 2017 so far:

DxContinuum acquired by ServiceNow

  • Acquired: January 18th, 2017
  • Founded: 2012
  • Acquisition Price: Undisclosed
  • Financing: $1.9M
  • Headcount: ~12

DxContinuum develops machine learning and predictive analytics software to help sales and marketing teams generate more accurate forecasts, boost productivity and cross-sell / up-sale opportunities. Contrary to much of the conversation sprouted from the news of this acquisition, this technology will not be applied to IT events or alerts. Instead, DxContinuum will be used to better categorize ServiceNow’s departmental data and service requests from people and machines.

According to 451 Research’s M&A KnowledgeBase, ServiceNow has acquired three other companies over the last two years, and has paid less than $3 million for each.

AppDynamics acquired by Cisco

  • Acquired: January 24th, 2017
  • Founded: 2008
  • Acquisition Price: $3.7 Billion
  • Financing: $314.5M
  • Headcount: ~1400

AppDynamics is a leading Application Performance Management (APM) software that has seen incredible traction among the enterprise and service provider markets. With Cisco struggling to grow revenue across legacy hardware businesses that are becoming more commoditized each year, buying best-of-breed technologies like AppDynamics, and leveraging Cisco’s own massive sales and marketing teams can be a deadly force in the market. While the price of the acquisition dropped jaws around the world, APM could very well become a winner-takes-all market, justifying the premium price paid by Cisco.

The question at hand is, who will acquire AppDynamics’ core competitor, New Relic? (Burton predicts SalesForce.)

Wavefront acquired by VMware

  • Acquired: April 12th, 2017Founded: 2013
  • Acquisition Price: Undisclosed
  • Financing: $65.5M
  • Headcount: ~50

Wavefront is a time-series metrics monitoring SaaS solution for cloud applications. They enable enterprises to store, visualize, and create alerts for virtually any type of time-series data. They primarily differentiate themselves by scale and speed, claiming the ability to analyze millions of data points per second.

VMware is focused on offering a best-in-class suite of solutions to monitor and manage hybrid IT environments, and Wavefront is a game-changer in this regard, as it can ingest and analyze data rates at the fastest possible speeds today. Wavefront will become a core part of vRealize Operations, a monitoring tool that helps businesses monitoring, troubleshoot, and plan capacity for virtualized environments.

Again, this sparks the question, who will acquire Wavefront’s competitor, Datadog?

Scout Server Monitoring acquired by Solarwinds

  • Acquired: May 5thh, 2017
  • Founded: 2008
  • Acquisition Price: Undisclosed
  • Financing: N/A
  • Headcount: ~20

Scout Server Monitoring, now rebranded as Pingdom Server Monitoring, is a SaaS-based server monitoring solution. Pingdom Server Monitoring appears to differentiate itself from competitive server monitoring tools primarily through lower price and ease of use.

Pingdom Server Monitoring will join Solarwinds’ SaaS portfolio of monitoring tools, including Librato, Papertrail and TraceView. This acquisition is indicative of Solarwinds’ intention to offer a monolithic suite of monitoring solutions.

Resolve Systems acquired by Insight Venture Partners

  • Acquired: May 24th, 2017
  • Founded: 2008
  • Acquisition Price: Undisclosed
  • Financing: N/A
  • Headcount: ~130

Resolve Systems is an incident response and automation platform for security, IT and network operations teams. With Resolve Systems, incidents get resolved through a combination of closed-loop and human-guided automation.

Insight Venture Partners is a global venture capital and private equity firm that invests in technology companies and helps them improve their businesses. With the acquisition, Insight Venture Partners plans to accelerate the response of the incident response technology. Future plans for Resolve Systems are unclear.

Wercker acquired by Oracle

  • Acquired: April 27th, 2017
  • Founded: 2008
  • Acquisition Price: Undisclosed
  • Financing: $7.9M
  • Headcount: ~30

Wercker is a Docker-Native CI/CD Automation platform for Kubernetes & Microservice Deployments. Their platform comprises of a local command line interface (CLI), online SaaS platform, and API. As Oracle goes after the cloud computing market with their Infrastructure as a Service (IaaS) and Platform as a Service (PaaS), Wercker should improve Oracle’s traction by helping customers to become more agile.

Apteligent acquired by VMware

  • Acquired: April 27th, 2017
  • Founded: 2011
  • Acquisition Price: Undisclosed
  • Financing: $48.7M  
  • Headcount: 51-100

Apteligent, formerly Crittercism, is a mobile APM solution that provides a real-time view of app diagnostics across IOS, Android, Windows 8, Hybrid, and HTML apps. They claim to operate across in more than 600 million unique devices and 100 billion app sessions.

In 2014, VMware purchased a mobile device management company, AirWatch. With AirWatch in mind, the acquisition of Apteligent should help to provide a richer set of capabilities to mobile analytics customers.

Unigma acquired by Kaseya

  • Acquired: May 9th, 2017
  • Founded: 2015
  • Acquisition Price: Undisclosed
  • Financing: Undisclosed  
  • Headcount: <10

Unigma is an early stage monitoring and management solution for public clouds. Their flagship product (Cloud Manager) monitors AWS, Azure and Google cloud resources, groups alerts, and pushes them to the right personnel.

Kaseya says the Unigma will operate independently and serve as a complementary platform to their network performance monitoring and management technology.

The Wrap-Up

Given what we all know about the competitive landscape of the IT Monitoring & Management market, I expect the acquisitions and consolidation to only increase. Share your thoughts on who is next — comment below, or get at us directly via @YoungKhanna / @moogsoft.

Moogsoft AIOps helps modern IT Operations and DevOps teams become smarter, faster, and more effective by providing technological supplementation that automates mundane tasks, enables scalability, and frees up human beings to do what they do best — ideate, create, and innovate. Start your free trial today by clicking here.

Sahil Khanna

About the Author

Sahil Khanna is a Sr. Product Marketing Manager at Moogsoft, where he focuses on the emergence of Algorithmic IT Operations. In his free time, Sahil enjoys banging on drums and participating in high-stakes bets.

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