March 24, 2016

AppDynamics uses a systematic sales approach

AppDynamics (, leader in application intelligence, has introduced a systematic sales approach to prove the business value of its solution. Named Business Value Assessment, the practice has industrialized how AppDynamics touches enterprises and accelerates the revenue. As seen as a Nice-to-Have solution, APM must prove ROI to convince finally the prospect. I remember how we positioned Precise APM at Veritas Software when we acquired them in 2003. It was a sales exercice to articulate a financial value vs. the software acq. cost. More than 10 years later and with the IT Complexity generated by the industry itself, it becomes even more obvious that such a solution is fundamental: data volume have exploded, transactions got more and more digitalized and business evolved faster to mobile users with demanding applications SLAs.

AppDynamics uses 2 key metrics to prove the impact of the solution: MTTI and MTTR, respectively for Mean Time To Identify and Mean Time To Resolution. The value is demonstrated pretty rapidly for all full components of a transaction and measured end-to-end. The main idea behind this is the tagging of the transaction in order to uniquely identify each transaction and sort them. The product instruments each transaction, traces the path of it, measure time at each tier and the global elapsed time. It is then pretty easy to display which transaction creates issues and degrades the performances of the system. AppDynamics' position is not so easy pointing to some tier and team within an enterprise and even some vendors. The beauty of the solution is the rapid result it delivers, capturing all transactions and reporting profils for each one. The product works on-premise, in the cloud and in mixed cloud environment and is priced in a SaaS mode.
In term of company current situation, we understand that AppDynamics doubles it bookings in FY2015, more than 90% of customers renew their usage, in a total of 1700+ customers worldwide. The company continues its rapid market penetration and race to independence with a recent VC round for a total of $300M+...


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