After AppDynamics sale, is anyone going to snap up the rest of the APM market?


Cisco’s purchase last week of application performance management vendor AppDynamics for $3.7 billion in cash and assumed equity awards could signal that the APM sector in general is a potential M&A target, according to industry analysts.

The APM market, which Gartner last summer said grew to $2.7B billion in 2015, is fragmented, and has been for some time. That means that consolidation may be overdue, with Cisco’s AppDynamics buy marking the start of the race.

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“The ice is broken,” said Milan Hanson, a senior analyst at Forrester Research. “There are a lot of APM players in the market, some thinning seems inevitable, and M&A always plays a part in that thinning.”

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