Digital Enterprise Journal attended the Velocity conference in New York last week which was a great opportunity to meet with some of the leading and emerging vendors and discuss key dynamics in Performance Testing, DevOps enablement, Web Performance Management, IT Performance Monitoring and Cloud Management markets. Here is a brief summary of conversations with eight vendors that showcased their solutions at the conference.
A conversation was centered around general trends in Performance Testing market and the increasing importance of these solutions. One of the key strengths of Nouvola’s solution are advanced analytics and correlation capabilities, which is becoming increasingly important in this market as DEJ wrote before. We also looked at the company’s plans for 2017 and discussed their focus on two major areas: Internet-of-Things (IoT) and community learning capabilities. Forty-one percent of organizations in DEJ’s recent survey are looking to deploy a solution that would allow them to leverage not only their own performance data, but also data collected by their peers that are using the same solution, so developing this type of capability could be a major opportunity for Nouvola. Also, as far as the focus on IoT goes, we agreed that trends in digital economy are forcing companies from industrial sectors and manufacturing to become software companies, which opens up new opportunities for Performance Testing vendors and makes these solutions even more important.
“With the emergence of industrial IoT, performance testing becomes even more important as it is no longer just about preventing losing millions of dollars due to poor performance in production. It is about preventing loss of human lives” – Paola Moretto, CEO, Nouvola
A day prior to our meeting, Datadog announced a launch of their application performance monitoring (APM) solution. The solution provides some core APM capabilities such as code-level visibility and transaction tracing, while instrumentation and data collection is conducted with a small amount of overhead and sampling capabilities are fully configurable. The company is not looking to challenge major APM players with this solution (it does not include user experience monitoring and some other capabilities provided by leading APM vendors), but to execute on their key goal – provide full visibility into the entire stack.
The meeting was also a good opportunity to discuss two themes that are fueling Datadog’s growth and are well founded in DEJ’s research – cost of no-action and challenges for monitoring dynamic infrastructures. DEJ’s research shows that organizations are losing, on average, $72,000 per minute of service outages while 48% of organizations reported that, on average, they spend more than 60 minutes on repairing performance issues per incident. Additionally, 51% of organizations in DEJ’s Cloud Management survey reported that their IT performance monitoring tools are not as effective when deployed in dynamic hybrid environments.
Datadog has been able to capitalize on these opportunities as the company’s solution was actually designed for these types of environments. Also, the major growth driver for the company’s growth are organizations that are realizing that the opportunity cost of not having full visibility into the entire infrastructure stack largely outweighs investments in next generation IT performance monitoring technologies.
Days prior to our meeting the company was acquired by CA technologies, but this was not the major topic of our conversation. We focused on two findings of our research that could be major opportunities for BlazeMeter: 1) democratization of the testing process; and 2) importance of automation capabilities for performance testing. DEJ’s research shows a 29% decrease in the number of organizations adopting the Center-of-Excellence (CoE) concept for performance testing since 2013. That trend, coupled with strategies of digital transformation leaders to decentralize technology purchasing decisions, enables testing and QA teams to be more independent when selecting performance testing capabilities to be deployed. Also, DEJ’s recent research shows that 56% of organizations are looking to deploy more automation capabilities for performance testing.
Both of these trends play to BlazeMeter’s strengths and go-to-market approach and it remains to be seen how good of a fit that would be for CA’s DevOps and application testing strategies.
We discussed two major themes from DEJ’s IT Performance and Digital Transformation research: 1) the need for more automation capabilities and 2) becoming a continuously learning organization as one of the major attributes of digital transformation leaders. DEJ’s research shows that Automation is one of the key drivers for new deployments of IT performance monitoring capabilities and VictorOps’ incident automation engine enables organizations to: 1) recognize repeatable tasks that should be automated; 2) automatically trigger actions towards problem resolution.
DEJ’s Digital Transformation research shows that organizational culture is one of the key obstacles for digital transformation for 77% of organizations. The research also shows that 68% of top performing companies in digital transformation have embraced a concept of being a continuously learning organization. VictorOps solution is the most effective when deployed in environments that put their developers “on call”, as it enables IT Operations and Developers teams to collaborate and address performance problems in a timely manner. However, the major challenge that the company is facing in the market is reluctance of organizations to change their processes and culture within IT and adopt “developers-on-call” and DevOps concepts.
The company provides an innovative approach for Cloud deployment and automation. Their unique approach allows them to tackle some of the key challenges for Cloud deployment and management, such as reducing complexity (as reported by 43% of organizations in DEJ’s research) and managing distributes applications and dynamic environments. As mentioned above, organizations are increasingly finding that tools they have been using for managing static environments are not as effective in the cloud, which presents a major opportunity for Fugue. Another important area of strength for Fugue is time to value from deploying their solution, which is much shorter than the industry average. DEJ’s research shows time to value is the top selection criteria for deploying IT performance monitoring solutions.
Fugue’s solution benefits both Developers and IT Operations and the company’s Cloud API enables users to automate management of all key layers of Cloud operations. As 76% of the top performing organizations in digital transformation ranked importance of Cloud Management capabilities that Fugue is providing as high or very high, the company is in a good position to materialize on some of the key technology dynamics in digital economy.
Emergence of digital transformation is making Digital Performance Management (DPM) one of the key focus areas for user organizations, which opened up major opportunities for SOASTA, and the company has been able to execute on them. DEJ’s research shows that 71% of organizations are deploying, or looking to deploy, capabilities that would allow them to correlate the impact of application performance on key business metrics. This is not a new trend in IT performance, but developments around digital transformation turn this capability from “nice to have” to an essential competency for staying competitive in digital economy.
DEJ’s research also shows that three of the key goals for digital businesses when evaluating technology solutions are: 1) the ability to create competitive advantage (61% of organizations); 2) address higher customer expectations around engagement and experience across different channels (68%); 3) deploy solutions that benefit multiple departments and job roles (42%). SOASTA is well positioned to meet all of these goals and use the prevalence of digital transformation as an accelerator for its future growth.
The meeting was a good opportunity to catch up with the progress the company has made since I first met them in 2012, and market opportunities that have been driving the company’s growth. Three key dimensions of the company’s offerings – global monitoring of Internet traffic and real user experience, traffic management and optimization and visibility into benefits from making better optimization decisions – are well aligned with goals of organizations that are going through digital transformation. DEJ’s research shows that 58% of organizations are looking to improve their capabilities for measuring the business value of technology deployments, while 46% of organizations reported that finding an optimal balance between cost and performance is one of their key goals for Web performance. A unique combination of capabilities that can benefit both IT and business users creates a value proposition for Cedexis that resonates very well with goals of digital businesses.
I have a lot of history with Catchpoint and have been covering them since they entered the market, so the meeting was a good opportunity to discuss general trends in the IT performance monitoring market and market dynamics that brought Catchpoint from a poorly funded start up to one of the leaders in Web Performance Monitoring space. One of the main topics was the importance of analytics for IT performance monitoring data and Catchpoint’s CEO brought up a very interesting idea that deserves to be explored more in the industry – IT Performance Data Clearinghouse. One of the key issues for making data collected more valuable is privacy and having a centralized regulated place where performance data (or at least a portion of it) collected from hundreds of vendors would benefit user organizations in many areas, such as benchmarking, global monitoring, lower cost, technology strategy creation, etc. It would also drive innovation on the vendor side and, instead of focusing on collecting more data, force them to build stronger capabilities for turning data into actionable insights, which is the #1 area of focus for IT Performance of user organizations going into 2017.
“You don’t win by having more nodes . You win by listening your customers and solving real problems for them” – Mehdi Daoudi, CEO and Co-Founder, Catchpoint Systems