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Gartner Releases 2014 Magic Quadrant for APM

Gartner released the 2014 Magic Quadrant for Application Performance Monitoring report, by Research VPs Jonah Kowall and Will Cappelli.

The report noted an increased importance in the software-as-a-service (SaaS) delivery method for Application Performance Management (APM) capabilities: “Users are growing ever more convinced that there is little or no functional or performance loss when consuming APM through a SaaS delivery mode. In fact, security and operations issues can often be reduced or eliminated by consuming SaaS technologies. At the same time, the advantages of a zero-management platform and reduced maintenance and continuous feature evolution are becoming ever more salient in a ‘do more for less’ and DevOps-influenced IT environment.”

The report predicts, "By 2017 50% of application performance monitoring (APM) deployments that fulfill all five dimensions of functionality will be primarily SaaS, up from under 20% today."

The five dimensions of functionality include:

■ End-user experience monitoring (EUM)

■ Application topology discovery and visualization

■ User-defined transaction profiling

■ Application component deep dive

■ IT Operations Analytics (ITOA)

In the report, Gartner also noted key shifts in the functional emphasis of solutions in the changing APM market this year. “First, driven by the increasing significance of mobile application endpoints and dynamic Web technology, EUM is becoming even more important than it currently is to enterprises,” states the report.

"Second, the 2013 argument between an approach to application performance analytics that would couple ITOA functionality tightly to an APM portfolio and one that envisioned APM as one discipline that used a domain-independent ITOA platform, among others, will be decided in favor of the latter approach."

Evaluation criteria for "completeness of vision" included market understanding, marketing strategy, sales strategy, product strategy, business model, vertical and industry strategy, innovation, and geographic strategy. Criteria for "ability to execute" included product, overall viability, sales execution and pricing, market responsiveness and record, marketing execution, customer experience, and operations. Gartner positions 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. In this report, AppDynamics, Compuware (now Dynatrace) and New Relic, were placed in the Leaders quadrant. The other vendors featured in the report include AppNeta, BMC, CA Technologies, HP, IBM, ManageEngine, Microsoft, Riverbed Technology and SmartBear.

“The Gartner Magic Quadrant is a particularly credible metric because of the meticulous methodology they follow in researching the marketplace," says Jyoti Bansal, AppDynamics founder and CEO. "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.”

Several links to the report are available below.

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Gartner Releases 2014 Magic Quadrant for APM

Gartner released the 2014 Magic Quadrant for Application Performance Monitoring report, by Research VPs Jonah Kowall and Will Cappelli.

The report noted an increased importance in the software-as-a-service (SaaS) delivery method for Application Performance Management (APM) capabilities: “Users are growing ever more convinced that there is little or no functional or performance loss when consuming APM through a SaaS delivery mode. In fact, security and operations issues can often be reduced or eliminated by consuming SaaS technologies. At the same time, the advantages of a zero-management platform and reduced maintenance and continuous feature evolution are becoming ever more salient in a ‘do more for less’ and DevOps-influenced IT environment.”

The report predicts, "By 2017 50% of application performance monitoring (APM) deployments that fulfill all five dimensions of functionality will be primarily SaaS, up from under 20% today."

The five dimensions of functionality include:

■ End-user experience monitoring (EUM)

■ Application topology discovery and visualization

■ User-defined transaction profiling

■ Application component deep dive

■ IT Operations Analytics (ITOA)

In the report, Gartner also noted key shifts in the functional emphasis of solutions in the changing APM market this year. “First, driven by the increasing significance of mobile application endpoints and dynamic Web technology, EUM is becoming even more important than it currently is to enterprises,” states the report.

"Second, the 2013 argument between an approach to application performance analytics that would couple ITOA functionality tightly to an APM portfolio and one that envisioned APM as one discipline that used a domain-independent ITOA platform, among others, will be decided in favor of the latter approach."

Evaluation criteria for "completeness of vision" included market understanding, marketing strategy, sales strategy, product strategy, business model, vertical and industry strategy, innovation, and geographic strategy. Criteria for "ability to execute" included product, overall viability, sales execution and pricing, market responsiveness and record, marketing execution, customer experience, and operations. Gartner positions 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. In this report, AppDynamics, Compuware (now Dynatrace) and New Relic, were placed in the Leaders quadrant. The other vendors featured in the report include AppNeta, BMC, CA Technologies, HP, IBM, ManageEngine, Microsoft, Riverbed Technology and SmartBear.

“The Gartner Magic Quadrant is a particularly credible metric because of the meticulous methodology they follow in researching the marketplace," says Jyoti Bansal, AppDynamics founder and CEO. "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.”

Several links to the report are available below.

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Many organizations describe AI as strategic, but they do not manage it strategically. When AI plans are disconnected from strategy, detached from organizational learning, and protected from serious assumptions testing, the problem is no longer technical immaturity; it is a failure of management discipline ... Executives too often tell organizations to "use AI" before they define what AI is supposed to change. The problem deepens in organizations where strategy isn't well articulated in the first place ...

Across the enterprise technology landscape, a quiet crisis is playing out. Organizations have run hundreds, sometimes thousands, of generative AI pilots. Leadership has celebrated the proof of concept (POCs) ... Industry experience points to a sobering reality: only 5-10% of AI POCs that progress to the pilot stage successfully reach scaled production. The remaining 90% fail because the enterprise environment around them was never ready to absorb them, not the AI models ...

Today's modern systems are not what they once were. Organizations now rely on distributed systems, event-driven workflows, hybrid and multi-cloud environments and continuous delivery pipelines. While each adds flexibility, it also introduces new, often invisible failures. Development speed is no longer the primary bottleneck of innovation. Reliability is ...

Seeing is believing, or in this case, seeing is understanding, according to New Relic's 2025 Observability Forecast for Retail and eCommerce report. Retailers who want to provide exceptional customer experiences while improving IT operations efficiency are leaning on observability ... Here are five key takeaways from the report ...

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Reliability is no longer proven by uptime alone, according to the The SRE Report 2026 from LogicMonitor. In the AI era, it is experienced through speed, consistency, and user trust, and increasingly judged by business impact. As digital services grow more complex and AI systems move into production, traditional monitoring approaches are struggling to keep pace, increasing the need for AI-first observability that spans applications, infrastructure, and the Internet ...

If AI is the engine of a modern organization, then data engineering is the road system beneath it. You can build the most powerful engine in the world, but without paved roads, traffic signals, and bridges that can support its weight, it will stall. In many enterprises, the engine is ready. The roads are not ...

In the world of digital-first business, there is no tolerance for service outages. Businesses know that outages are the quickest way to lose money and customers. For smaller organizations, unplanned downtime could even force the business to close ... A new study from PagerDuty, The State of AI-First Operations, reveals that companies actively incorporating AI into operations now view operational resilience as a growth driver rather than a cost center. But how are they achieving it? ...

In live financial environments, capital markets software cannot pause for rebuilds. New capabilities are introduced as stacked technology layers to meet evolving demands while systems remain active, data keeps moving, and controls stay intact. AI is no exception, and its opportunities are significant: accelerated decision cycles, compressed manual workflows, and more effective operations across complex environments. The constraint isn't the models themselves, but the architectural environments they enter ...

Like most digital transformation shifts, organizations often prioritize productivity and leave security and observability to keep pace. This usually translates to both the mass implementation of new technology and fragmented monitoring and observability (M&O) tooling. In the era of AI and varied cloud architecture, a disparate observability function can be dangerous. IT teams will lack a complete picture of their IT environment, making it harder to diagnose issues while slowing down mean time to resolve (MTTR). In fact, according to recent data from the SolarWinds State of Monitoring & Observability Report, 77% of IT personnel said the lack of visibility across their on-prem and cloud architecture was an issue ...