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Taming the Challenge of Digital Transformation — Announcing the New AppDynamics Pricing Model

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Summary
The new AppDynamics pricing model and packages provide predictable, simplified licensing made for the modern IT stack. Unlock business observability today.

What happens when an unstoppable force meets an immovable object?” Although this question could pertain to a superhero battling a villain, it’s a scenario that IT teams throughout the world are currently facing. The forces of digital transformation that are pushing organizations to modernize, scale, and thrive in a software-centric world are unstoppable. And budgets, saddled with the expectation to do more with less, are often the objects standing in the way. No business entity feels this tension more acutely than the modern enterprise.

Although not at all a new phenomenon, the visibility of these opposing forces has never been more apparent than in 2020. The current macroeconomic concerns around COVID-19 have led to a widespread increase in the digital footprint of most enterprises. Yet, according to a recent Gartner report, despite this growth IT spending in 2020 fell by 5.4%. To combat these inverse trends, IT buyers must make not only the right investments, but also optimize their spend to drive the maximum return.

“With the purchasing of enterprise software becoming increasingly complicated by the many solutions available, choice confusion is no longer relegated only to the consumer market,” said Linda Tong, General Manager of AppDynamics. “This complexity leaves IT leaders under immense pressure when it comes to investing in the technology that drives their business.”

To build clarity into the buying process, we’ve spent countless hours diving into this issue with IT leaders across multiple industries. Here are some of the key areas they evaluate when it comes to purchasing Application Performance Management (APM) software. 

  • Can I consolidate vendors into a single platform?  APM software vendors tend to offer a wide portfolio of products and solutions, many of which are sold a la carte. This can be a problem for buyers, as over the years they tend to accumulate a collection of tools that essentially provide the same services. Modern IT buyers are more interested in evaluating single-solution platforms with a best in class combination of capabilities or products. Not only does having a unified platform improve user productivity, it also helps you optimize costs and reduces the number of vendor relationships a company has to manage — a win-win for employees and leadership.  
  • Am I over/under-investing in licensing? APM software vendors are getting increasingly creative about offering a range of buying and licensing models. While this may sound innovative, the combination of multiple pricing models and complex licensing and metering can cause stress for IT buyers, who spend too much time either worrying about over purchasing or getting the quarterly true-up surprises. Over spending has a negative effect on your budget, while under spending can put you at risk of having gaps in your applications monitoring requirements. Modern APM buyers prefer simplified and transparent pricing models to ensure they are making the proper level of investment. 
  • Can the solution manage the rapidly changing application landscape? Digital transformation is making it increasingly complex to manage and monitor modern applications.  With the addition of ephemeral services and distributed architectures, it is now exceedingly challenging to predict the licensing needs of an application as it evolves. APM software buyers care about the scalability and flexibility of the licensing models to ensure they have the coverage to adapt to rapid innovation. 

 

Our newly revitalized pricing model stems from this inherent understanding of our customer’s expectations. Our goal is to make our industry-leading solutions easier to purchase, while developing packages with best-in-class monitoring and management capabilities. In doing so, we’re providing a more practical and flexible approach to pricing that meets the evolving needs of the modern enterprise.

We’re excited to announce that AppDynamics has launched a brand new, flexible pricing model and account experience for our core backend monitoring capabilities. Available now to both new and existing customers, the model includes:

  • Dynamic packages that align our industry-leading back end monitoring and business analytics tools, providing comprehensive solutions that support your entire suite of applications. This includes packages that bring the full power of our Business Observability Platform, providing you with industry-leading visibility and insights for the applications that your business relies on, along with the fundamental monitoring capabilities for your non-critical applications. 
  • New infrastructure-based licensing with simple, predictable, and flexible licensing meters that are scalable and support any application infrastructure, from legacy components to modern containers and microservices. Our customers can expect to see this universal licensing metric going forward as we continue to introduce new products to the market. 
  • Complete visibility into your license utilization and allocation. Not only will this help ensure you have the proper licensing coverage, it also better supports the chargeback policies utilized by many enterprises that are internally charging their different business units for the applications being monitored.

 

As we continue to evolve our technology to disrupt the industry, we are always mindful not to disrupt our customer’s operations. We hope to make this change as transparent and seamless an experience as possible for our customers as we transition to this new model.

And we’re just getting started. As AppDynamics continues to lead innovation in APM, we remain committed at our core to a customer-first approach of developing pricing and packaging for modern enterprises as they make their digital transformation a reality.

So they can continue to disrupt the industry — not the business.

Sid Gupta

Sid Gupta

Sid Gupta is a Director of Growth & Strategy at AppDynamics where he leads the Business Models & Pricing Strategy for AppDynamics. Sid is particularly interested in designing customer-centric buying models to fuel long term growth by increasing portfolio access and adoption. He has led business model and pricing model transformation projects at various software and manufacturing companies such as Autodesk, ITT Corporation, and Stanley Black & Decker. Sid holds an MBA from Simon Business School, and a Bachelor of Engineering from the National Institute of Technology, India.