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1 Global Headquarters: 5 Speen Street Framingham, MA USA P F E X C E R P T N i n e S t a r t - U p s a n d I n n o v a t o r s E x t e n d t h e C l o u d S y s t e m s M a n a g e m e n t S o f t w a r e M a r k e t p l a c e : C l o s e - u p o n S c i e n c e L o g i c Mary Johnston Turner I N T H I S E X C E R P T The content for this excerpt was taken directly from the IDC document Nine Start-Ups and Innovators Extend the Cloud Systems Management Software Marketplace by Mary Johnston Turner (Doc # ). This document focuses on ScienceLogic and the market context surrounding its product offerings. All or parts of the following sections are included in this excerpt: IDC Opinion, In This Study, Situation Overview, Future Outlook, Essential Guidance, and Synopsis. Also included is Figure 1. I D C O P I N I O N IDC's research shows: Enterprise and service provider cloud systems management requirements are becoming more complex and sophisticated as the scope and scale of production cloud applications increases. Cloud systems management innovators are developing a range of monitoring, analytic, and automation options for improving IT staff productivity and managing complex production workloads across large-scale public, private, and hybrid cloud environments. Many cloud systems management software start-ups and innovators will eventually be acquired and see their technologies integrated into broader mainstream datacenter and cloud management portfolios, however, a few may have the opportunity to become profitable standalone companies if they can scale up customer demand and effective go-to-market programs for the long term. S I T U A T I O N O V E R V I E W IDC's winter 2012 CloudTrack Survey of 493 IT decision makers indicates that, on average, participants expect 45.5% of their organization's IT service delivery budget to be allocated to some type of cloud (public or private) by early Of that, 65% is expected to be devoted to private cloud investments. Filing Information: October 2012, IDC #237300e_sciencelogic, Volume: 1 IT Cloud Decision Economics: Vendor Needs and Strategies

2 IDC estimates that the market for cloud systems management software totaled $754 million in 2011 and will increase to more than $3 billion by These software products are used to enable many fundamental cloud operations activities including: Automated self-service resource provisioning and workload migration defined by predefined policies, service catalogs, and service templates Orchestration of a wide range of configuration and governance tasks and workflows across diverse cloud infrastructure, applications, and processes Ongoing elastic optimization of capacity and resource utilization via advance infrastructure, application and end-user performance monitoring and analytics Predictive analytics and service-level monitoring spanning complex, heterogeneous cloud infrastructure and applications assets Consistent delivery of end-user and application service levels by enterprise, midmarket, and service provider IT teams First-generation cloud systems management products were largely built on the backs of established proprietary server and VM provisioning tools and/or leveraged open source cloud abstraction and automation solutions. In many cases, these products focused on speeding up initial resource and application provisioning but did little to improve the performance, cost, and efficiency of ongoing operations and applications. As shown in Figure 1, as cloud architectures move out of the lab and into mainstream production use, many customers and service providers will require more robust management solutions that enable them to do more than provision a VM using a selfservice portal. Over the life cycle of a cloud application or workload, the greatest share of costs will come from day-to-day support services and staffing costs used to monitor, manage, upgrade, and support the end users and application infrastructure. By implementing cloud-ready management, monitoring, and automation for real-time application and infrastructure optimization, chargeback, service-level management, root cause analysis, and problem remediation, IT organizations will be able to scale up the complexity and scope of cloud operations without needing to scale head count and budgets at the same rate of growth. Start-ups and privately held companies are fueling much of the second-generation innovation occurring across the cloud management landscape, with a strong emphasis on performance monitoring and advanced analytics. While some of these companies may eventually become large, profitable public companies, IDC expects that many are destined to be acquired by larger firms seeking to rapidly extend their portfolios. #237300e_sciencelogic 2012 IDC

3 F I G U R E 1 E v o l u t i o n o f C l o u d M a n a g e m e n t P r i o r i t i e s a s E n v i r o n m e n t s B e c o m e M o r e C o m p l e x Source: IDC, 2012 ScienceLogic ScienceLogic's unified datacenter and cloud management software provides a single unified multitenant pane of glass to view and monitor heterogeneous systems and applications. Capabilities include video performance monitoring, asset management, service-level management, service desk, and cloud monitoring capabilities. Its target markets include virtualized datacenters and cloud service management environments operated by enterprise customers and service providers. The firm recently extended its support for storage and converged infrastructure systems such as Cisco UCS, Vblock, and FlexPod to further round out its coverage. In the area of cloud monitoring, the company made early investments in support of a wide range of public cloud APIs including a number of SaaS and IaaS services such as AWS, GoGrid, and Rackspace, as well as private cloud and traditional datacenter environments. The platform is deployed as a physical or virtual appliance, which allows for rapid deployment and time to value. ScienceLogic's platform has been architected from the ground up to support integrated performance, event and fault monitoring, analytics, asset management, service desk, and runbook automation activities on a unified, multitenant platform using a common data model, analytics engine, and user interface. The integrated, appliance-based turnkey approach has 2012 IDC #237300e_sciencelogic 1

4 been particularly successful with MSPs and smaller cloud service providers that want to quickly stand up unified public and public cloud management solutions that can also encompass traditional datacenter environments. ScienceLogic's decentralized architecture is designed to handle thousands of devices, whether physical or virtual, using agentless and extensible data collection techniques. The most recent release, version 7.2, added enhanced visualization across traditional consoles and intelligent mobile device dashboards and enhanced the extensibility of its bidirectional API to feed existing external portals if necessary. ScienceLogic has relied primarily on direct sales efforts targeting large enterprise and service provider environments in North America and the United Kingdom. It has been growing its network of distribution channel partners across the United States, as well as in EMEA and Asia, and just opened a satellite office in Australia. The company recently introduced a public beta of a SaaS version of the product, which is available as a 30-day free trial to make it easier for potential customers to experience the product and purchase it with less direct sales effort being required. The firm took a $15 million Series B round of venture funding, led by Intel Capital and NEA in April F U T U R E O U T L O O K As public, private, and hybrid cloud environments mature and increase in scale and complexity, more and more IT management teams will discover that effective cloud management and efficient day-to-day operations require a highly integrated approach to monitoring, scaling, and optimizing resource consumption and workload performance across the application life cycle. Cloud monitoring, analytics, and automation, such as provided by the start-ups and innovators discussed in this study, will be needed to streamline operations and ensure that cloud applications are being supported by the most appropriate resources in terms of cost, security, performance, and end-user experience. Collectively, the companies profiled in this study represent a small fraction of today's current cloud systems management market revenue. Yet the technologies being created by some of these companies may ultimately become market leaders or critical components of broader enterprise and service provider cloud management solutions. For all these companies, the current challenge is to scale up productionquality accounts and revenue while continuing to innovate and develop comprehensive go-to-market programs and channels. E S S E N T I A L G U I D A N C E Most enterprise and service providers envision a future state where dynamic cloud environments deliver real-time, optimized workload provisioning, migration, end-user SLAs, and cost control. Monitoring, analytics, and automation are critical enablers for this vision. IT decision makers that are ready to invest in cloud-based architectures that go beyond simple self-service portals to deliver highly automated and optimized environments will need to take advantage of state-of-the-art monitoring, analytics, and 2 #237300e_sciencelogic 2012 IDC

5 automation. Pilots and experiments with some of the technologies profiled in this study may help expand corporate cloud strategies and accelerate implementation of more sophisticated cloud management approaches. L E A R N M O R E R e l a t e d R e s e a r c h Emerging SaaS Providers Offer New Options for Cloud Management and Automation (IDC #236986, September 2012) VMware Extends Cloud Management Agenda (IDC #236927, September 2012) Worldwide Cloud Systems Management Software 2011 Vendor Shares: Market Moves Beyond Self-Service (IDC #236556, August 2012) Red Hat Extends Cloud Service Management Options (IDC #lcus , July 2012) BMC Updates Cloud Management Software Portfolio to Make Stronger Business Connections (IDC #lcus , July 2012) IDC's Software Taxonomy, 2012 (IDC #235401, June 2012) Worldwide Cloud Systems Management Software Forecast (IDC #234001, March 2012) Worldwide Cloud Systems Management Software Forecast Update and 2010 Vendor Shares (IDC #231493, November 2011) Worldwide Cloud Systems Management Software 2011 Vendor Strategies (IDC #231140, November 2011) U.S Private Cloud Management Survey: The Journey Continues (IDC #230188, September 2011) IT Cloud Decision Economics: 10 Best Practices for Public IT Cloud Service Selection and Management (IDC #229207, July 2011) S y n o p s i s This IDC study profiles nine start-up and emerging cloud systems management software vendors that are addressing the needs of large-scale and dynamic cloud environments. "Advanced monitoring, analytics, and automation such as those being developed by the start-ups and innovators discussed in this study are critical enablers for the costeffective, stable, and reliable management of large-scale, dynamic, public, private, and hybrid clouds going forward," states Mary Johnston Turner, IDC research vice president, Enterprise Systems Management Software IDC #237300e_sciencelogic 3

6 C o p y r i g h t N o t i c e This IDC research document was published as part of an IDC continuous intelligence service, providing written research, analyst interactions, telebriefings, and conferences. Visit to learn more about IDC subscription and consulting services. To view a list of IDC offices worldwide, visit Please contact the IDC Hotline at , ext (or ) or for information on applying the price of this document toward the purchase of an IDC service or for information on additional copies or Web rights. Copyright 2012 IDC. Reproduction is forbidden unless authorized. All rights reserved. 4 # IDC

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