Software analytics company New Relic, Inc., today announced that it has publicly filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (SEC) relating to a proposed initial public offering of its common stock.
New Relic is an Application Performance Management vendor that delivers its product via SaaS. New Relic was founded by Lew Cirne, the founder and former CEO of Wily, which was sold to CA and became CA Introscope. Introscope was (and still is) a notoriously difficult product to implement and manage in production. When Lew Cirne founded New Relic, he was determined not to make this mistake again and structured New Relic around the following groundbreaking innovations:
- New Relic is only available on a SaaS-delivered basis. It has only one back end, which New Relic maintains itself. This lets New Relic continuously roll enhancements into production, allowing it to innovate at a rate faster than that of companies that need to update complex on-premises software installations.
- With its support for Ruby, New Relic was the first vendor to support a language other than Java or .NET. In fact, the original name for the product was RPM, which stood for Rails Performance Manager. New Relic now supports a broad set of languages including Java, .NET, Ruby, Python, PHP, and Node.js.
- New Relic was the first APM vendor to go to market through partnerships with cloud vendors. It is the case today for many public clouds that you can order monitoring of your cloud instance as a part of your checkout process for your cloud instance. In many cases, when you order monitoring, you are getting a New Relic account set up for you without your even knowing it.
- New Relic has evolved from a vendor focusing on the performance and throughput of custom code in production (APM) to a vendor that ingests data from many sources and is in fact now a heterogeneous big data back end in the cloud.
The New Management Software Industry
The entire management software industry has been undergoing a disruption and reinvention of the legacy vendors (IBM, BMC, HP, and CA). Splunk was the first of the new management software vendors to go public. New Relic now appears to be the second. Based on its business results, AppDynamics is likely to be the third. SevOne at the network layer and VMTurbo at the operations management layer are also strong candidates to IPO in the next twelve months.
As these vendors all become public companies, the management software industry will become transformed. Although this industry has been led by the legacy vendors (IBM, BMC, HP, and CA) for twenty-plus years, the mantle of leadership will now transfer to the newcomers—who will start to acquire emerging vendors and build out the breadth of their portfolios.
New Relic has filed for an IPO. This innovative APM and big data analytics vendor will now be positioned as one of the leaders of the new management software industry.