On August 31 2009, NetQos announced its Network Based Virtualization Performance Management offerings. Like AppSpeed this new offering uses a virtual appliance attached to a virtual mirror port on the VMware vSwitch to monitor application and network performance from the perspective of the network. Other parts of the NetQos product line also monitor the physical network. NetQos was therefore in the strong and fairly unique position of being able to monitor applications performance for virtualized applications from the perspective of both the virtual and physical networks.

Today (see below) CA announced that it is acquiring NetQos. The combination of the previously acquired Cassatt and Wily assets with the NetQos assets now give CA the full set of components needed to field a comprehensive performance management solution for virtual and cloud environments. The only question that remains is whether or not CA will be able to effectively position and sell these solutions into the virtualization marketplace against experience competitors like VizionCore and Veeam who have significant channel and customer presence in this market.

CA Announcement of the NetQos acquisition is copied in below:

ISLANDIA, N.Y. and AUSTIN, Texas, September 14, 2009 – CA, Inc. (NASDAQ:CA), the world’s leading independent IT management software company, today announced that it has signed a definitive agreement to acquire privately-held NetQoS® Inc., a leading provider of network performance management and service delivery solutions, for $200 million.

“CA offers the industry’s strongest and most complete service assurance and delivery portfolio,” said Ajei Gopal, executive vice president of CA’s Products and Technology Group. “With the addition of the NetQoS network flow monitoring, unified communications management, and response time analytic network solutions, CA will further strengthen its ability to help enterprise IT organizations and service providers deliver reliable, flexible and cost-effective IT and business services.”

“NetQoS customers and partners will benefit from CA’s extraordinary development capabilities, outstanding sales force, and global customer support infrastructure,” said Joel Trammell, chief executive officer, NetQoS. “NetQoS’ solutions will strengthen CA’s ability to deliver to its customers service-centric insight into network, systems and application performance—with no visibility gaps.”

CA is a recognized leader in the management of networks, systems, application performance, and cloud computing.* NetQoS’ industry-leading solutions will extend CA’s capabilities in each of these areas:

Network and Systems Management

The combination of CA eHealth® Network Performance Manager, CA Spectrum® Infrastructure Manager and the NetQoS Performance Center will give CIOs and network engineers and operations managers better visibility and control of critical services in their physical and virtual network and systems environments. This will enable customers to flexibly and efficiently deliver high-quality services such as unified communications.

Application Performance Management

By linking transaction views to the infrastructure, CA Wily Application Performance Management and the NetQoS Performance Center will enable a new level of quality of experience, in which the infrastructure is application-aware. This 360-degree view of applications will provide customers both an outside-in and inside-out perspective of their business and IT services, something no other single vendor can provide.

Cloud Management

CA’s acquisition of NetQoS builds on the assets CA acquired from Cassatt earlier this year, as well as CA’s organically developed CA Spectrum® Automation Manager for dynamic performance-based automation of physical, virtual and cloud computing environments. As enterprises and service providers become increasingly reliant on the shared infrastructure of private and public computing clouds, CA and NetQoS will provide a robust level of network and systems traffic management that will be critical to successfully delivering cloud-based services.

Founded ten years ago, NetQoS has more than 1,000 active customers worldwide, including many in the Fortune 100. With annual revenue of $56 million in 2008, NetQoS’ revenues have experienced a 58 percent CAGR over the past five fiscal years.

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Bernd Harzog (323 Posts)

Bernd Harzog is the Analyst at The Virtualization Practice for Performance and Capacity Management and IT as a Service (Private Cloud).

Bernd is also the CEO and founder of APM Experts a company that provides strategic marketing services to vendors in the virtualization performance management, and application performance management markets.

Prior to these two companies, Bernd was the CEO of RTO Software, the VP Products at Netuitive, a General Manager at Xcellenet, and Research Director for Systems Software at Gartner Group. Bernd has an MBA in Marketing from the University of Chicago.

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