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AppDynamics, Inc.
Private Company
Industry Application Performance Management
Founded 2008
Headquarters San Francisco, CA, United States
Key people
  • Jyoti Bansal, Founder and CEO

AppDynamics, Inc. is an American privately held application performance management (APM) company based in San Francisco, CA. The company focuses on managing the performance and availability of applications across cloud computing environments as well as inside the data center.[1] Specializing in complex, distributed environments,[2] the company currently supports Java, .NET and PHP applications, and offers both a Software-as-a-service or an on-premise deployment.[3]

History and Founding[edit]

AppDynamics was founded in April 2008 by current CEO Jyoti Bansal, a former lead software architect at Wily Technologies, a provider of application performance management technology.[4] Bansal formed AppDynamics in response to the kinds of APM tools he had seen in the industry, which were tailored towards the demand of monolithic applications running on top of the traditional IT architectures. Such monolithic applications were becoming less common in the face of emerging, increasingly distributed architectures built with Service-Oriented Architecture principles.[5]

Bansal felt that in order to perform in these new environments, APM tools needed to not only provide visibility into the application as well as code-level detail into specific issues, but also have the ability to dynamically act based upon what the software is able to learn about the application’s overall health and performance.[6] Doing so would allow application owners to be more agile and better respond to rapid code releases, keeping up with their counterparts in development who were already following an agile software development philosophy.[4] Another goal was to enable large-scale cloud monitoring, where companies with sizable deployments might need thousands of cloud-based nodes monitored — such as at Netflix, which uses AppDynamics to monitor its public cloud deployment.[7]

AppDynamics has received four rounds of funding totaling $86.5 million. In April 2008 the company obtained a Series A round for 5.5 million from Greylock Partners and Lightspeed Venture Partners. In May 2010, the same investors backed the company’s Series B round for $11 million.[8] In January 2012 AppDynamics received a Series C round of funding for $20 million led by Kleiner Perkins.[9] In January 2013, AppDynamics secured a $50 million Series D funding round led by Institutional Venture Partners (IVP).[10] The company's existing investors were also included in the round. According to the Wall Street Journal, the company received a valuation of $500 million in this funding round.[11] In July 2014, AppDynamics secured an additional round of funding totaling 120 million dollars.[12]

Recognitions and Certifications[edit]

AppDynamics is rated as the #1 Cloud Computing Company and CEO to Work For in 2013.[13] AppDynamics was positioned as a Leader in Gartner's Magic Quadrant for Application Performance Management in 2012.[14] Also in 2012, AppDynamics was recognized as an "APM Innovator" by Gartner, and the EMA Radar Report named AppDynamics as the "Best Infrastructure-as-a-Service (IaaS)" monitoring solution.[15][16] In 2010, AppDynamics received a “Cool Vendor” in IT Operations certification from Gartner.[17] The company also placed in CRN’s Top 20 Cloud Software and Apps Vendors[18] and in Network World’s “25 Hot Products from New IT Companies.”[19] InfoWorld Magazine reviewed the company’s free Java performance download and rated it an 8.3.[20]


On April 10, 2013, CA Technologies (formerly Computer Associates) filed a lawsuit in the US District Court for the Eastern District in New York. The lawsuit claims that AppDynamics violated three patents that came into CA Technologies' possession through acquisitions. The three patents in question are numbers U.S. Patent 7,225,361 B2; U.S. Patent 7,512,935 B1; and U.S. Patent 7,797,580 B2.[21] This is the second action CA Technologies has filed in connection with alleged infringement of patents obtained in the acquisition of Wily Technology. In November 2012, CA Technologies filed a lawsuit asserting patent infringement of the same three APM patents against software company, New Relic.

On February 2, 2015, Jonah Kowall, research Vice President in Gartner's IT Operations Research group and lead in evaluating Application Performance Management vendors in the Gartner APM Magic Quadrant took a controversial Marketing position within AppDynamics.[22][23] Later on February 17, 2015, AppDynamics hired a second APM industry analyst John Rakowski of Forrester Research also into a Marketing role.[24] Questions about the integrity of both analysts who both took competing vendor briefings while entertaining job offers from AppDynamics remain.

See also[edit]


  1. ^ MacVittie, Lori. (March 31, 2010) "AppDynamics Puts the Management in Application Performance Management." Two Different Socks Retrieved September 7, 2011.
  2. ^ Worthington, David. (February 22, 2010). "New App-Performance Software Goes for Ease of Use." Retrieved September 8, 2011.
  3. ^ "AppDynamics Delivers Disruptive New .NET Monitoring and Management Solution." TMCNet. August 11, 2011. Retrieved September 7, 2011.
  4. ^ a b Demery, Paul. (February 26, 2010). "Priceline Finds a Way to Monitor its Wide World of Applications." InternetRetailer. Retrieved September 7, 2011.
  5. ^ Subramanian, Krishnan. (October 5, 2010). "AppDynamics Prepares for the Cloud Era." Retrieved September 8, 2011.
  6. ^ Bacheldor, Beth. (May 24, 2010). "Startup AppDynamics Offers a Free, Lite APM." NetworkComputing. Retrieved September 7, 2011.
  7. ^ Cockcroft, Adrian. (March 7, 2011). "Performance Architecture for Cloud." Powerpoint presentation from Cloud Connect 2011. Retrieved September 7, 2011.
  8. ^ Harzog, Bernd. (May 4, 2010). "AppDynamics Raises an $11 Million Series B Round – Confirms APM 2.0 Opportunity." The Virtualization Practice. Retrieved September 8, 2011.
  9. ^ "AppDynamics Secures $20 Million in Series C Financing Led by Kleiner Perkins Caufield & Byers." PR Newswire. January 17, 2012. Retrieved February 22, 2012.
  10. ^ "Enterprise darling AppDynamics raises $50M, looks international ahead of likely IPO." Pando Daily. January 23, 2013. Retrieved January 23, 2013.
  11. ^ "AppDynamics Rides the Enterprise-Tech Wave." The Wall Street Journal. January 23, 2013. Retrieved January 23, 2013.
  12. ^
  13. ^ "The Best Cloud Computing Companies and CEOs to Work For in 2013" February 22, 2013. Retrieved February 27, 2013.
  14. ^ Kowall, Jonah and Will Cappelli. (August 16, 2012). "Magic Quadrant for Application Performance Monitoring." Gartner. Retrieved August 17, 2012.
  15. ^ Kowall, Jonah. (December 23, 2011). "APM Innovators Research." Gartner. Retrieved February 22, 2012.
  16. ^ "EMA Identifies Top Cloud-Ready Application Performance Management (APM) Solutions." PRWEB. January 27, 2012. Retrieved February 22, 2012.
  17. ^ Coyle, David et al. (April 1, 2010). "Cool Vendors in IT Operations Management, 2010." Gartner. Retrieved September 8, 2011.
  18. ^ "The Top 20 Cloud Software and Apps Vendors of 2011." March 30, 2011. Retrieved September 8, 2011.
  19. ^ "25 Hot Products from New IT Companies." NetworkWorld. October 25, 2010. Retrieved September 8, 2011.
  20. ^ Wayner, Peter. (July 28, 2010). "InfoWorld Review: Free Java Application Performance Monitors." InfoWorld. Retrieved September 8, 2011.
  21. ^ Smythe, Christie. "CA Technologies Sues AppDynamics Over IT Patents". 
  22. ^ Kowall, Jonah. "Farewell… for now". 
  23. ^ Kowall, Jonah. "Why I Joined AppDynamics". 
  24. ^ APMDigest. "John Rakowski Joins AppDynamics in Strategic Product Marketing Role". 

External links[edit]