Welcome!

PHP Authors: Liz McMillan, Carmen Gonzalez, Hovhannes Avoyan, Lori MacVittie, Trevor Parsons

Related Topics: @CloudExpo, Java IoT, Microservices Expo, Microsoft Cloud, Containers Expo Blog, PHP, Agile Computing, Ruby-On-Rails

@CloudExpo: Article

New Relic Raises Whopping $80 Million

New Relic says it saw 200% year-over-year revenue growth including 18 quarters of consecutive growth

SaaS-based application performance monitoring start-up New Relic, which has already raised $34.5 million in venture capital, has gotten a whopping $80 million in mezzanine financing to move into native mobile applications, open an office in Europe, add staff and prepare to IPO.

The handsome sum, which gives it a total of $115 million and a reported valuation of $750 million, comes largely from Insight Venture Partners and T Rowe Price, marking the first time since Twitter that the pair has funded a start-up together.

Other participants include Dragoneer Investment Group, Passport Ventures and the company's existing investors Allen & Company, Benchmark Capital, Trinity Ventures and Tenaya Capital.

New Relic says it saw 200% year-over-year revenue growth including 18 quarters of consecutive growth from playing in the data center and cloud markets monitoring deployed web applications implemented in Ruby, Java, .NET or PHP.

It also doubled its customer base, pushing the number to 35,000 active customer accounts in five years, adding over 1,200 paying customers in the December quarter.

It's supposed to be the industry's largest installed base for an application performance management solution. It does 85 billion metrics a day and a million app instances are sent to New Relic at any given time.

The money will help New Relic increase its enterprise footprint.

It says its widgetry has been adopted by thousands of companies worldwide, including significant deployments with ESPN, Nike and Sony. Collaboration, e-commerce, gaming and social media businesses such as Comcast, E*Trade, eHarmony, GitHub, Groupon, Mashable, MercadoLibre and Zumba also use New Relic to lower the costs of maintaining and optimizing business-critical software applications.

The company figures it's looking at a $20 billion market and that - with its unspoken "grander plans" beyond application performance management - it can be as "just as important as VMware or Salesforce.com.

New Relic CEO Lew Cirne sold Wily Technology, which monitored on-premise Java apps, to CA in 2006 for $375 million and started New Relic in 2008. In November, CA sued New Relic for patent infringement seeking "undisclosed damages" and an injunction to prevent misuse of its IP.

The three patents allegedly infringed were part of the Wily acquisition. CA said in a statement that it "will not allow its patents to be infringed, especially by those who have already profited by selling to us the very patents in question."

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


IoT & Smart Cities Stories
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Early Bird Registration Discount Expires on August 31, 2018 Conference Registration Link ▸ HERE. Pick from all 200 sessions in all 10 tracks, plus 22 Keynotes & General Sessions! Lunch is served two days. EXPIRES AUGUST 31, 2018. Ticket prices: ($1,295-Aug 31) ($1,495-Oct 31) ($1,995-Nov 12) ($2,500-Walk-in)
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
Nicolas Fierro is CEO of MIMIR Blockchain Solutions. He is a programmer, technologist, and operations dev who has worked with Ethereum and blockchain since 2014. His knowledge in blockchain dates to when he performed dev ops services to the Ethereum Foundation as one the privileged few developers to work with the original core team in Switzerland.