Thursday Jan 2, 2014 by Dennis Keohane - Senior Writer, VentureFizz
AppNeta, the application performance management company based in Boston, has had a good run the past few years.
And yet, in an interview with CEO Jim Melvin, there seems to be even more excitement within the company about its prospects for the future as they have positioned themselves as a key player in what is becoming an increasingly more vital and crowded sector.
With the growth of SaaS and the ubiquity of cloud-based networks, a company like AppNeta, who was in the space early and has grown along with the online application space, is poised for success.
As Melvin explained, "We see a rapid surge in web based applications being developed, a lot are being developed by SaaS companies, many of which are right here in Boston. As this is all happening, the development tools are continuing to advance so the barriers to create new apps continue to come down."
"What that means," he added, "is more SaaS applications and more new generation internal enterprise applications. At the backbone of this whole thing, they are all web and mobile applications, all similar technologies."
"As these web and mobile application become more vital to enterprises everyday operations," Melvin continued, "the success and dependability of the applications become more necessary."
"This technology footprint that is being embraced allows companies to now very rapidly update their applications. Ten years ago, you launched an app and updated it every year. Today, your applications are being updated everyday. Some piece of it is changing almost all the time."
The rapid rate of software update changes and the need for applications to keep running smoothly, is as Melvin said, a "big driver" for the growth of application performance management. As these web and mobile applications become more vital to enterprises everyday operations, the apps reliability may be intertwined with a company's success or failure.
AppNeta is a company in the space that has been around for a while, raising over $55M since 2007. Most recently, in November, they announced an $8M Venture Round from SolarWinds, an IT management company based out of Texas. Previous investors include Bain Capital Ventures, Egan-Managed Capital, Business Development Bank of Canada, JMI Equity, BDC Venture Capital, and Aden Investments.
"We started looking at application performance almost five years ago." Melvin said of AppNeta's growth and ability to evolve with the application performance climate. Back when they started the focus was on how applications "would work across distributed networks," he explained. "If you were a large enterprise, and you had a critical application being used across your enterprise footprint, we could help you make that work more efficiently."
"Over the last several years," Melvin continued, "we've broadened our technology portfolio. [Now] it's all 100% SaaS delivered, it's an end-to-end, full stack, application performance management suite."
"We are the only vendor that provides performance insight all the way from the application in the backend, through the network-which is a very important part of the puzzle-out to the end user," he said.
"Its a very rapidly growing market, and, as such, we are growing our company at over 100% a year over the past four years and we have a ton of top-tier accounts that we work with."
Some of the customers that AppNeta is working with (and can talk about), include Shutterfly, Red Hat, and MapMyFitness, among others.
Two of the companies better known products AppVeiw Web and TraceView are featured in this video:
AppNeta recently announced a new product, FlowView, the company's big data analysis tool.
As Melvin said of the launch, "We've continued to evolve our technologies to leverage cloud-based big-data technologies to help our customers solve problems. We collect vast sums of information from application delivery environments. The value that we provide to our customers is making sense of that and turning raw data into actionable insight to make their applications run better."
Continuing to grow and evolve in a rapidly changing sector has brought success for AppNeta, it will be interesting to watch them grow (they are hiring) in the next year.