What Can AppDynamics Do With $158M?

3 minute read
Derek Walter avatar

AppDynamics, which makes software for monitoring and analyzing cloud performance, is out with a number of new initiatives and a fresh round of fundraising to bolster its appeal.

The company announced at its AppSphere conference several forthcoming updates to its Application Intelligence Platform, which gives companies tools to monitor end-to-end performance and more quickly resolve issues with their cloud services and mobile/web applications.

With cloud software the day-to-day norm in enterprise, AppDynamics has risen quickly and raised another $158 million. This comes despite the fact that many “unicorns” (those with a valuation over $1 billion) are drawing a more skeptical eye from some venture capital investors.  

Reigning in the Cloud

As part of the company’s new moves, AppDynamics has several plans focused on helping companies monitor the performance of all their cloud services.

For example, there are two dozen new extensions to the “Enhanced Unified Monitoring” platform, which allows companies to ensure their Amazon Web Services, Java, and Web Server solutions are performing up to speed. Additionally, a ramped-up Server Infrastructure Monitoring program is designed to quickly detect and resolve performance issues. Also, AppDynamics offerings are engineered to observe and manage C/C++ applications for root-cause analysis and issue resolution.

The software solutions are not only designed for cloud services, but for on-premises and hybrid environments. This move allows for AppDynamics to cast a wider net, as several companies are still supporting legacy software or are in the process of a slow transition of moving everything to some type of cloud environment.

Looking for the Payoff

According to a Reuters report, AppDynamics has a value of $1.9 billion, which is up from a $1.1 billion in July 2014.

Learning Opportunities

That boost is actually more moderate in the world of valuations, and it indicates that investors would rather not see such figures go sky high.

Recently, for example, other companies at the unicorn level would be able to double or triple their worth in a rapid amount of time. But that trend may be changing, as reports detailed that in June Airbnb kept its $25.5 billion valuation while still raising another $100 million.

Given the increased move of enterprise software to the cloud, companies like AppDynamics have a service that will certainly be in demand. It’s not difficult to see why there would be such investor interest and a high estimation – software performance is critical to keeping things running smoothly. 

AppDynamics boasts of 1,600 paying customers, such as eHarmony, Kraft Inc., NASDAQ, and Nike, the Reuters report states. The most recent financial information is from February, when the company announced $150 million in annual gross revenue.