You know it, I know it... and everybody in Silicon Valley knows it. The IT monitoring market has seen a major shift. We've gone from merely monitoring PCs and servers... toward monitoring on-premises and cloud applications, using a range of new dashboards. The irony? I wonder if too many cloud monitoring startups are getting funded.
The latest example is SignalFX, which has raised nearly $30 million over the past two years or so -- and is just emerging from stealth mode now. The company claims it has built a modern monitoring platform that offers streaming analytics.
SignalFX certainly isn't alone. Appedo earlier this week announced $1 million in funding for an application performance management platform (March 11, item 7). Datadog raised $31 million in Series C funding back in January 2015 -- hoping to provide one dashboard for all monitoring. And a lengthy list of additional players -- in touch with After Nines Inc. -- hopes to emerge from stealth mode late this year.
After Nines Inc. has been tracking IT management's next wave on a regular basis. New Relic has already gone public; AppDynamics hopes to pursue an IPO; and Boundary raised its latest round of venture funding in 2014 -- though an unexpected CEO change at Boundary surfaced this year. (See our podcast archive for interviews with a range of CEOs in this market.)
Fighting for Air in the Cloud
Still, the IT monitoring market -- shifting toward the cloud model -- has gotten very crowded. I sense that a shakeout is coming. Within the next 12 months, I think it will become increasingly difficult for IT monitoring startups to raise money.
As Yogi Berra once said: "Nobody goes there anymore. It's too crowded."