Forrester Reveals ROI of AppDynamics with Cisco

Over 90% of IT decision makers find a business case valuable to validate their technology investments.  For customers on their digital transformation journey, they specifically want to understand the projected ROI of AppDynamics APM.

We commissioned Forrester Consulting to evaluate “What is the business impact of AppDynamics APM?”  In their newly released Total Economic Impact™ (TEI) study, you’ll get insights into the cost savings and business value enterprises can realize with AppDynamics APM—and now that we are part of Cisco, how it can create additional advantage for customers also using Cisco technology.

Forrester interviewed and surveyed several customers who have used AppDynamics APM for years, across industries including healthcare, financial services, and retail.

Five key quantitative benefits emerged as representative of the companies who participated:

#1: IT Operations and Help Desk Time Savings

  • Faster root-cause identification with AppDynamics APM decreased mean-time-to-resolve by 65% for IT groups

  • IT groups were able to avoid time consuming war room triage sessions

  • Help desks received 30% fewer calls for support

  • Estimated IT savings: $2.8 million present value (PV) over three years

#2: End User Productivity Recovery

  • Business end users recovered an average of eight minutes of productivity per incident when uninterrupted by performance or outage issues

  • Estimated savings:  ~$8.5 million over three years

#3: Development Reduction Savings

  • AppDynamics early detection capabilities allowed developers to spot issues at a code level and quickly fix errors before releasing work into production

  • Fewer test & debugging cycles were required even as environments became more complex

  • Estimated savings from cycle reduction: nearly $4 million across three years and 45%

#4: Time-to-Value Benefit of Faster Application Delivery

  • With accelerated application delivery, natively coded projects were released as much as four months (or half of original expectations) faster

  • Assuming an internal rate of return of 30%, an organization can net as much as $1.1 million PV over three years, excluding any application revenue generation

#5: Application Monitoring and Detection Tool Consolidation

  • Consolidation in tools with AppDynamics provided level of insights that enabled customers to reduce their stack by as much as 70%

  • Maintaining these tools typically cost 20% of the licensing (or production for internal tools)

  • Total combined value of tool rationalization:  $3.6 million PV over three years

AppDynamics and Cisco: Better Together

The research also revealed benefits for customers that leverage AppDynamics together with Cisco. Forrester highlights: “With AppDynamics and Cisco, customers have a single view across their environment, with insightful visibility into both the software and now the hardware stack. Remediation is faster and customers become more proactive to avoid performance degradation.”

You can download Forrester’s exclusive study today to access the ROI data you need to make the business case for AppDynamics APM.  I also invite you to join me for our live webinar featuring Forrester to learn more about APM trends, the TEI methodology, and AppDynamics + Cisco.

Cisco (AppDynamics) is Named a Leader in Gartner’s Magic Quadrant for the Sixth Consecutive Year

Today, Cisco (AppDynamics) was named a Leader in Gartner’s 2018 Magic Quadrant for Application Performance Monitoring Suites for the sixth year in a row. We were also positioned highest among 15 vendors for ability to execute – something we’re incredibly proud of.

Since joining AppDynamics over a year ago, one of the things I love most about the team is how closely we listen to customers.  Whether it is about cloud migrations, digital transformation, or improving the speed of doing business, our customers’ feedback inspires us to keep innovating faster every day.

We believe Gartner’s recognition is a reflection of the innovations we’ve made over the last year that are dedicated to helping customers achieve more visibility, confidence, and agility.

Take, for example, our introduction of the next generation of Business iQ, Business Journeys, which links multiple, distributed business events into a single view that shows the way customers actually interact with a business. Businesses can now shape their digital experiences to match the real-time needs and expectations of their customers.

And as more connected devices continue to spread in both the consumer and enterprise worlds, we also launched IoT Monitoring to give businesses the ability to glean insights into end-user behavior across any number of devices.

Then there’s the massive task of drawing real-time insights from the high volume of data we collect. We needed help here, and we got it with Perspica Technologies. We doubled down on our machine learning capabilities with the onboarding of Perspica to help advance the domain-expertise needed to quickly turn data into business-aware insights.   

This was just a glimpse of our milestones in over the last year. We believe being named as a leader for APM Suites in Gartner’s Magic Quadrant for the sixth consecutive year is a big honor, but we’re nowhere near slowing down. So stay tuned – you’ll want to see what we have in store.

Learn more

Download your complimentary copy of the 2018 APM Suites Gartner Magic Quadrant report now.

Gartner Magic Quadrant for Application Performance Monitoring Suites, Will Cappelli, Sanjit Ganguli, Federico De Silva, 19 March 2018. Cisco (AppDynamics) was included as AppDynamics from 2012-2016. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and is used herein with permission. All rights reserved.

Five Years of Listening: AppDynamics is a 2016 Gartner Magic Quadrant APM Leader Again

How great are winning streaks? You get validation for hard work (which is, of course, the only way you have long term success. I’m not talking lucky streak, here.). It draws attention to the good work you’re doing. And it lends credibility.

And as the world continues to speed up, attention spans get shorter, and competition gets stiffer, staying on, or near, the top year after year has become even more gratifying and rare.

Think about it. We’ve always lived in a world of one-hit wonders, flavors of the month, and fads. But most of us remember a time when at least the brands and companies we’d always known remained stable. Now not even the enterprise world is safe from our wavering interests. We’ve witnessed multiple once-mighty corporations taken down, unable to survive the era of the customer.

So, in these fickle times, it felt particularly great to hear that we’ve hit a special milestone, being rated among the leaders in Gartner’s 2016 APM Magic Quadrant five years in a row. The Magic Quadrant’s reputation is well earned, as it is one of the most thorough and meticulous pieces of research and analysis in the enterprise world. Being recognized by Gartner as a leader in our industry for five straight years is a testament to the team’s hard work and talent, and there’s a lot of people to thank for it.

But we’ll keep it about the customers. We’re very proud of the high quality of our products and our people. But “high quality” is just a short way to say, “Customers find that your products are very helpful for them and their business.” And our employees are high quality because they realize that, and enjoy moving down the customer-centric path as a team.

Innovation is a conversation

Customers have always been the best guide. I mentioned their short attention spans earlier. Short attention spans have gotten a bad rap, but I’m hesitant to tag that customer trait in negative terms. For one, what is a short attention span really? It’s evolving wants and needs, and that’s not a bad thing at all. It’s difficult to keep up with, but not bad. Also, more often than not, customers’ moving gazes have really good judgement. That’s why it’s a good habit to figure out what’s distracting their attention. The aforementioned once-mighty corporations didn’t.

The most consistent innovators are actually the best listeners. It’s as important a skill for a company as being technically savvy. Innovation is a conversation. Customers tell us what they think of current products, we use that information to make things better, we ask them if they like this new thing we made for them, then we listen some more.

What’s that? You want APM to help you drive better business outcomes? We’re on it. And thank you for letting us know.

Keep listening, and apply your skills and creativity to what you hear, next thing you know, you’ve got a nice winning streak on your hands.

Learn more

Please be sure to download the 2016 APM Gartner Magic Quadrant report. We’ll certainly be listening to what it has to say.


Gartner [Magic Quadrant for Application Performance Monitoring Suites], [Cameron Haight, Federico de Silva], [21 December 2016].

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Industry Insights: 2015 Gartner APM “Suites” Magic Quadrant

The 2015 edition of the Gartner Magic Quadrant for APM published this week. There were several interesting changes, the first being that the name of the research has been changed. The research is now titled “APM Suites” versus simply APM. The second big change is the lead author; the research is now being led by Cameron Haight, a 15-year veteran at Gartner. Having worked with Cameron for many years, I was glad when he took over to lead the APM research. He’s a progressive thinker at Gartner, having pioneered the DevOps research in 2010, and then going on to kick off Gartner’s Web-Scale research in 2012. Most of what he was writing about and taking client calls on were very progressive topics that were on the cusp of normality. DevOps has reached normality, and hence is positioned on the peak of expectations in the Gartner Hype Cycle. With all of Cameron’s progressive thinking, I was quite surprised to see the APM research have such weightings applied to legacy technologies and business models.

Most APM Tools Are Poorly Integrated “Suites”

Gartner identifies that most of the vendors, especially the legacy vendors, have broad suites of tools, which are poorly integrated. Gartner pointed out in the survey results earlier this year that APM tools are not as widely adopted due to lack of integration, which is the second most cited barrier after price. The fact that Gartner has adjusted the name of the research explains some of the changes in the model that affect relative positioning of legacy vendors. Gartner is saying that suites are okay here, even though they present a major barrier to those implementing and managing these tools.

The Legacy Lives On

While legacy software vendors exist within IT operations management, there is clearly momentum towards newer technology providers. Why is this shift occurring? Digital transformation is not an option. It’s a requirement to remain in business. In order for these companies to transform, Gartner recommends implementing a bimodal strategy; the net result is that model 1 manages legacy systems, while model 2 is the fast-moving group. Becoming innovative is not an option, Gartner states in “How to Achieve Enterprise Agility With a Bimodal Capability”:  “At the heart of the digital transformation and bimodal is the need for enterprises to become more creative, to break out of the business as usual and, in particular, to establish a stronger capability in technology-led business innovation.” The result of this is that legacy ITOM vendors existing in mode 1 teams will collect maintenance revenue, but fail to grow, while mode 2 is where growth and innovation is occurring.

Favoring Legacy Software Revenue Models

Once again, in Gartner’s own words, software is transitioning to new consumption models. “As subscription-based alternatives and particularly software as a service (SaaS) are being adopted by organizations, a more predictable revenue pattern will emerge”. Modern software companies have shifted to subscription-based revenue models. What this means is that for subscription businesses, revenue comes during the lifetime of the customer, versus being paid up front as it is for perpetual businesses. Revenue is a lagging indicator for SaaS businesses, whereas bookings is an accurate measure. Gartner is using 2014 calendar-year revenues, which favors these perpetual businesses. The reason why Gartner is using this data is because revenue is reported by every public company; hence it’s easier to obtain for many vendors, but it also favors these legacy models. Every business is slowly transitioning to subscriptions, but many legacy providers cannot make this jump. For example, based on IDC data for systems management vendors, Dynatrace’s SaaS revenue declined 3.3 percent in 2014, as they continue to sell primarily perpetual software along with the other legacy vendors.

When analyzing the IT Operations Management market, the fastest growing companies in the space, and the most relevant to their respective markets, include AppDynamics, New Relic, Splunk, and ServiceNow. These businesses are almost entirely subscription revenue model, while the legacy vendors are primarily perpetual software models. This shows that ITOM has a massive legacy of companies that cannot transform and have failed to transition.

Private Equity

Private equity has been extremely active in the ITOM space, especially in monitoring. Thoma Bravo now has acquired seven public companies in this space. I was fortunate enough to sit in on Gary Spivak’s financial sessions at the Gartner Data Center, Infrastructure & Operations Management Conference in December 2015. In Gary’s session and research note titled, “How to Re-evaluate Strategic Vendors Acquired by Private Equity,” he mentions the reason PE firms acquire these companies. “The company has a lack of revenue growth, accompanied by strong cash generation.” Clearly, these companies have large installed bases generating maintenance revenue. Additionally these leveraged buyouts require a large portion of financing or debt to execute, and with today’s low interest rates they can pay off the debt they accrue. As Gary states, “The company’s cash flows are sufficient to make interest payments on existing and new additional debt (commonly referred to as a debt burden), and still sustain business operations (to an extent).” With each of these acquisitions there have been immediate layoffs, reductions in sales forces, and typically a reduction in R&D. This translates to profits for the private equity firms, but these goals do not align with what end users expect. In this same research, Gary indicates that privatization of companies like BMC amassed a large amount of debt owed by the company; BMC moved from $1.8b to $6b in debt. When Dell went private, the debt swelled from $9b to $18b in order to fund the transaction. During privatization, Compuware raised an additional $2b of debt to fund the transaction. This debt or obligation is the responsibility of the company, not the private equity firm.


When analyzing the growth of these vendors, the picture for many is quite bleak. In a previous blog post I analyzed Gartner’s own market data numbers, and many companies included in this research who were scored with high marks in execution are failing to grow at the rate of the market expansion. This means that new business is not going to legacy players, it’s going to the new breed of company solving today’s new problems. The health of these businesses are in question, yet they are being rated as viable, well-executing companies.

No Visionaries

I was quite surprised that no vendors fell in the visionary quadrant. There are two ways to describe this:

  1. It’s very hard to build a fully capable APM tool, so most vendors do not want to compete with market leaders in this space.
  2. The market is mature, meaning there are fewer scrappy startups as there once were just a few short years ago.

Clearly the problem has not been solved. By most expert estimates, fewer than 10 percent of enterprise applications have APM tools in place, meaning there is a lot of work to be done to solve application problems. None of the challengers can build a compelling vision for how to solve these issues in a unique way?

One can hope this model evolves with progressive thinking to meet the demands of today’s digital businesses as they try to remain relevant in a time of disruption. In Gartner’s own words, “CEOs should assume that business model change will be forced by new digital entrants or an adjacent competitor within the next two years.”

(2015 CEO Survey: Committing to Digital, Mark Raskino ) digital transformation is not an option but an imperative for CEOs today, and this imperative is only addressed by innovative companies.

Gartner’s 2014 APM Magic Quadrant names AppDynamics a Leader for the Third Time!

The AppDynamics team has done it again! For the third year in a row, Gartner has positioned AppDynamics as a Leader in its 2014 Magic Quadrant for Application Performance Monitoring. And we are a leader that’s also positioned furthest along the Completeness of Vision axis. We believe these tremendous achievements point to our companywide effort to build a great product and promote widespread adoption within the enterprise.

I find it particularly gratifying to see AppDynamics positioned furthest along in the industry in vision. Because I believe that our particular vision — to give enterprises the tools not only to master the performance of their applications, but also to harvest from them the “application intelligence” to make their businesses more successful — is our true differentiator and a major reason we are a leader in redefining our industry.

I’m thrilled with the leadership position we’ve earned, and totally proud of the entire AppDynamics staff, to whom this honor really belongs.

The Gartner Magic Quadrant

The Gartner Magic Quadrant is a particularly credible metric because of the meticulous methodology they follow in researching the marketplace. Gartner’s APM analysts interview hundreds of customers who are APM users. The Magic Quadrant report reflects the feedback from these actual users, as well as other evaluation criteria and the expertise of Gartner’s analysts, and is widely used and trusted by APM buyers.

Gartner’s criteria for ‘completeness of vision’ includes: market understanding, marketing strategy, sales strategy, product strategy, business model, vertical and industry strategy, innovation, and geographic strategy. Their criteria for ‘ability to execute’ includes product, overall viability, sales execution and pricing, market responsiveness and record, marketing execution, customer experience, and operations.

At the end of their research, they position each vendor on two axes — Completeness of Vision and Ability to Execute — which lands them in a particular Quadrant. Those who demonstrate market understanding on both axes are placed in the top right Leaders quadrant, where AppDynamics has appeared in all three years we have been eligible to participate.

Because the positions of the vendors on the quadrant reflect the experience of real APM users, the Quadrant is an excellent way to visualize the marketplace, and when taken year-over-year, we believe it exposes industry trends and changes that are otherwise difficult to picture.

Our Position

Once again as a Leader, and this time as the furthest in Vision, I continue to be inspired by what a great team can accomplish while truly innovating. We’ve watched our legacy counterparts attempt to innovate, but fail to keep up to deliver what the modern software-defined business requires. The marketplace, too, is recognizing this. Our Application Intelligence Platform continues to make a substantial positive impact in the industry. Though Gartner’s Magic Quadrant is a testament to our APM solution, we’ve become so much more than that by providing true Application Intelligence for enterprise companies.

I’m extremely proud of the entire team: from engineering, to sales, to customer success, to marketing, and beyond. These tremendous achievements would not have been possible without every employee’s diligent hard work. I believe being the furthest in Vision speaks volumes about what we have already accomplished, but even more about what’s next.

Get the 2014 Gartner Magic Quadrant for APM here

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.