Dynatrace and Keynote merge to form largest APM company in the world

Dynatrace and Keynote have merged to form the biggest APM company in the world, with 7,500 customers, 1,750 staff and combined annual revenues of £286 million.


Dynatrace and Keynote have merged to create the biggest application performance management (APM) firm in the world, the companies announced today.

Both companies will now fall under the ‘Dynatrace’ brand. However Keynote’s customers will be able to access new services like Dynatrace’s third-party analytics and its PurePath technology, which monitors online transactions, solutions VP Michael Allen told ComputerworldUK.

Dynatrace customers will now be able to use Keynote’s ‘Insights’ consulting service, which helps organisations to analyse internal datasets. UK customers include Thomas Cook, Experian, Top Right Group and Thomson Reuters, but it works with global names like Microsoft, Virgin, Google, Visa, Nestle, Nike and Disney.

The new company will have the world’s biggest ‘synthetic monitoring network’, with the ability to test traffic from 100,000 locations in 162 countries using its APM-as-a-Service product, Allen said.

It will also offer both firms’ customers Dynatrace’s ‘outage analyser’ product, which tracks internet outages in real time, tries to predict the next big failure and analyses the root cause.

“If people build more and more complex sites with more analytics, adverts, plug-ins, third-party Javascript libraries and so on, if those components fail, the website fails. Overlaying outage analyser data onto actual end user performance data allows us to do root cause analysis,” Allen said.

The “vast majority” of employees will transfer from Keynote to Dynatrace, bringing the total number to 1,750, he explained. The executive teams have also merged.

“Customers will start to see the results of the merger in our products by the end of the calendar year. But for the organisations it’s happened already…we’ve been working on it since early January,” Allen said.

The APM market is worth £1.7 billion and growing at 16 percent annually, according to Gartner’s latest report on the sector. Dynatrace has the largest share of the market, but its main competitors include AppDynamics and New Relic, the report said.

The companies are both owned by private equity firm Thoma Bravo. Keynote was acquired for £251 million in June 2013, while Compuware (which later split to form Dynatrace) was bought for £1.6 billion in December 2014.

Allen explained that the new company will help organisations to deal with the “unsolvable equation” of needing to cope with rapid change, get new web products out faster than ever, with less money and greater expectations from users.

“That pressure will only continue. That’s why we’re getting examples like the DVLA website [which has crashed repeatedly],” he said.

“Either they’re cutting corners on testing, or when problems happen they don’t have enough people to troubleshoot quickly enough before it hits the news. It’s very painful for these organisations,” Allen added.

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