dynaTrace software Posts Record Revenue in 2007

Boston - dynaTrace software, Inc. today announced that it ended 2007 with strong momentum, posting record increases in revenue and installed customer base. Revenue grew by over 300% year-over-year with strong customer growth in both the North American and EMEA markets. The Company also posted record repeat business from its installed base as initial customers achieved rapid return on investment and made additional license investments.

“2007 was really a break-out year for dynaTrace”, said Bernd Greifeneder, dynaTrace CEO. “We’re proud of the growth that we have achieved, and the mutual success we have built with our customers worldwide. This customer growth and strong repeat business demonstrate that our PurePath Technology® is uniquely positioned to help customers optimize application performance by allowing them to not just automatically monitor and diagnose performance issues, but rapidly resolve them - throughout the application lifecycle from development into production.”

Rapid Growth of Customer Base
dynaTrace’s installed customer base expanded over five-fold worldwide in 2007, with key wins in sectors such as banking/financial services, healthcare, Software-as-a-Service (SaaS) providers, managed services and retail. Notable customer wins in 2007 included Insurance giant AXA (NYSE: AXA), energy technology leader EnerNOC (NASD: ENOC), global manufacturing leader Siemens (NYSE: SI), human resources SaaS leader Peopleclick, and European healthcare technology provider Centris AG. This growth validates the next-generation design of dynaTrace Diagnostics.

According to Gartner, “Applications have become more modular, distributed, interdependent and sensitive to the conditions of their execution environment. This evolution has rendered traditional approaches to APM inadequate.”

Global insurance leader AXA/DBV-Winterthur faced a choice between CA Wily, Quest Software and dynaTrace when it went in search of a next-generation diagnostic tool for its distributed Java environment. “In the end we selected dynaTrace Diagnostics,” Project Leader Justus Wagner said, “because it was the only solution that offered the ability to trace and analyse user activities (among other things in the call-chain) in individual transactions across several Java Virtual Machines.”

dynaTrace Diagnostics unique distributed architecture is designed to capture 100x more data than traditional APM tools at a fraction of the overhead, enabling customers to deploy the solution across the full application lifecycle.

”Scalability is a major focus for us,” said Terry Sick, Vice President Product Development and Engineering at EnerNOC. “Our goal is to deliver the most robust, reliable technology platform in the demand response and energy management industry. By expanding our dynaTrace deployment beyond our QA and Staging environments, we are able to identify issues early in the development cycle. We have also fully integrated dynaTrace in production to spot any performance issues before they become problems.”

New Strategic Partnerships and Channel Expansion
In addition, in 2007 dynaTrace established and deepened strategic relationships with leading companies such as Microsoft Corp. and Borland as well as other reselling partnerships with European technology and channel partners. The growth of these relationships has enabled dynaTrace to further increase revenue opportunities.

dynaTrace’s strategic relationship with Microsoft also expanded with the release of dynaTrace Diagnostics 2.5 which includes the CodeLink Plug-In for Microsoft Visual Studio 2008. “This support for the .NET Framework furthers enterprises’ freedom to choose the technology that best suits their individual needs,” said Joe Marini, Director of the Visual Studio Industry Partner (VSIP) program in the Developer Tools Ecosystem team at Microsoft Corp. “With dynaTrace Diagnostics, developers have enhanced capabilities to trace any performance issues to their root cause and then view them directly in Visual Studio.”

dynaTrace extended its partnership with Borland Software by entering into an OEM agreement integrating dynaTrace Diagnostics with its load testing tool. “Using dynaTrace in combination with Borland’s load testing tool SilkPerformer® enables us to understand and rapidly resolve the performance issues,” said Ernst Ambichl, Chief Scientist at Borland Software. Numerous Borland customers are improving application performance using dynaTrace Diagnostics integrated with SilkPerformer® to provide root-cause diagnostics in their load test environments.

Extension of Technology Leadership
In 2007, dynaTrace introduced version 2.5 of its ground-breaking diagnostics solution, designed to provide a unique approach to APM, surpassing such traditional performance monitoring tools. “In version 2.5 we have further extended our already very extensive SOA and remoting diagnostics by adding support for JBoss 5 remoting, JAX-WS (Web Services), and MSMQ (Messaging),” stated CEO Bernd Greifeneder. “Our unique PurePath Technology enables our customers to diagnose and resolve performance problems in distributed applications, by following each individual transaction across all involved servers.”

dynaTrace’s design and architecture was validated by awards it received in 2007. dynaTrace Diagnostics was selected “Best Solution from a New Player” finalist by attendees at the Software Test & Performance Conference in Boston, as well as winning a top Innovation Award at the Basta! Development Conference in Germany.

About dynaTrace software Inc.

dynaTrace is a leader in application performance for business-critical Java and .NET applications. dynaTrace’s PurePath Technology®, the core of the next generation of Application Performance Management, is one of the only solutions that captures data on all individual transactions down to code level by tracing their “PurePath” across multiple heterogeneous physical and logical tiers – even 24x7 under load in production – enabling customers to move beyond monitoring to diagnosis and resolution. In each application lifecycle stage – development, QA, staging, live operations in production – IT personnel now can see and understand where and why performance issues exist. With dynaTrace, enterprises gain better understanding of their applications’ dynamic behavior and how it impacts their business, allowing them to rapidly reconstruct problems to identify the root-cause and fix it. >> Monitor. Diagnose. Resolve. >> http://www.dynatrace.com/

Contacts:
dynaTrace Software Inc.
Eric Senunas, +17814668082

or
Klaus Fellner, +4373290820832