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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.

The Latest

An overwhelming majority of IT leaders (95%) believe the upcoming wave of AI-powered digital transformation is set to be the most impactful and intensive seen thus far, according to The Science of Productivity: AI, Adoption, And Employee Experience, a new report from Nexthink ...

Overall outage frequency and the general level of reported severity continue to decline, according to the Outage Analysis 2025 from Uptime Institute. However, cyber security incidents are on the rise and often have severe, lasting impacts ...

In March, New Relic published the State of Observability for Media and Entertainment Report to share insights, data, and analysis into the adoption and business value of observability across the media and entertainment industry. Here are six key takeaways from the report ...

Regardless of their scale, business decisions often take time, effort, and a lot of back-and-forth discussion to reach any sort of actionable conclusion ... Any means of streamlining this process and getting from complex problems to optimal solutions more efficiently and reliably is key. How can organizations optimize their decision-making to save time and reduce excess effort from those involved? ...

As enterprises accelerate their cloud adoption strategies, CIOs are routinely exceeding their cloud budgets — a concern that's about to face additional pressure from an unexpected direction: uncertainty over semiconductor tariffs. The CIO Cloud Trends Survey & Report from Azul reveals the extent continued cloud investment despite cost overruns, and how organizations are attempting to bring spending under control ...

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According to Auvik's 2025 IT Trends Report, 60% of IT professionals feel at least moderately burned out on the job, with 43% stating that their workload is contributing to work stress. At the same time, many IT professionals are naming AI and machine learning as key areas they'd most like to upskill ...

Businesses that face downtime or outages risk financial and reputational damage, as well as reducing partner, shareholder, and customer trust. One of the major challenges that enterprises face is implementing a robust business continuity plan. What's the solution? The answer may lie in disaster recovery tactics such as truly immutable storage and regular disaster recovery testing ...

IT spending is expected to jump nearly 10% in 2025, and organizations are now facing pressure to manage costs without slowing down critical functions like observability. To meet the challenge, leaders are turning to smarter, more cost effective business strategies. Enter stage right: OpenTelemetry, the missing piece of the puzzle that is no longer just an option but rather a strategic advantage ...

Amidst the threat of cyberhacks and data breaches, companies install several security measures to keep their business safely afloat. These measures aim to protect businesses, employees, and crucial data. Yet, employees perceive them as burdensome. Frustrated with complex logins, slow access, and constant security checks, workers decide to completely bypass all security set-ups ...

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